Sales jump 19.2 percent for Applied Industrial Technologies
Applied Industrial Technologies reported net sales for the 2022 first fiscal quarter increased 19.2 percent to $891.7 million from $747.8 million in the prior year.
The change includes a 2.1 percent increase from acquisitions and a 0.8 percent increase from foreign currency translation. Excluding these factors, sales increased 16.3 percent on an organic basis reflecting a 15.9 percent increase in the Service Center segment and a 17.4 percent increase in the Fluid Power & Flow Control segment.
Net income of $53.0 million, or $1.36 per share, compared to $34.8 million, or 89 cents per diluted share, in the prior year period.
“We started fiscal 2022 on a positive note with sales, EBITDA, and EPS all achieving record first quarter levels," said Neil A. Schrimsher, Applied’s president & chief executive officer. "We are effectively managing through industrial supply chain and inflationary headwinds year to date. This is highlighted by solid organic growth and EBITDA margin expansion during the quarter, as well as a build in inventory levels supporting near-term growth opportunities. At the same time, our cash generation remains strong and we continue to execute on our strategic growth plan, including expansion of our automation platform with the August 2021 acquisition of R.R. Floody Company.”
Schrimsher added that supply chain and inflationary pressures across the industrial sector present ongoing uncertainty to the company's near-term outlook. "That said, underlying demand remains resilient entering our fiscal second quarter with organic sales up by a mid-teens percent year over year so far in October, while order and backlog trends are encouraging. We believe our leading technical industry position, local service capabilities, and evolution into new industrial technologies and solutions is a competitive advantage being reinforced by current macro and supply chain dynamics. Combined with balance sheet capacity, we have considerable self-help growth and earnings potential that we are intensely focused on capturing in fiscal 2022 and beyond,” he said.
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