Posted August 11, 2022

Applied's sales grew by 18.5 percent

Applied Industrial Technologies reported fourth-quarter 2022 net sales increased 18.5 percent to $1.1 billion from $895.9 million in the prior year.

Applied Industrial TechnologiesThe change includes a 0.3 percent increase from acquisitions, partially offset by a negative 0.5 percent impact from foreign currency translation. Excluding these factors, sales increased 18.7 percent on an organic basis reflecting a 21.0 percent increase in the Service Center segment and a 14.0 percent increase in the Fluid Power & Flow Control segment.

The distributor of industrial motion, fluid power, flow control and automation technologies reported net income of $­­­79.1 million, or $2.02 per share, compared to $59.2 million, or $1.53, in the same period last year.

For the 12 months ended June 30, 2022, sales of $3.8 billion increased 17.8 percent compared with the prior year, or 16.6 percent on an organic basis. Net income was $257.4 million, or $6.58 per share, compared to $144.8 million, or $3.68 for the previous year.

“We ended fiscal 2022 on a strong note with sales, EBITDA, and EPS all hitting new quarterly records. Sales growth accelerated during the quarter including strong performance in June, while gross margin execution and solid operating leverage drove strong EBITDA margin expansion and over 30 percent EPS growth despite ongoing inflationary and supply chain pressures,” said Neil A. Schrimsher, president and chief executive officer.

Schrimsher added, “As we move into fiscal 2023, organic sales are up by a mid-teens percent through early August compared to prior-year levels, while order and backlog trends remain positive. We are mindful of greater economic uncertainty that has manifested in recent months, and know how to execute if industrial activity were to slow. That said, we have yet to see any meaningful signs of slowing and remain constructive considering structural demand tailwinds within our core end markets and channels, as well as momentum from our cross-selling initiatives.”