Posted October 27, 2022

Applied sees 19.1% sales gain

Applied Industrial Technologies reported that net sales for the company's fiscal 2023 first quarter increased 19.1% to $1.1 billion from $891.7 million in the prior year.

Applied Industrial TechnologiesThe change includes a 0.2% increase from acquisitions, partially offset by a negative 0.5% impact from foreign currency translation. Sales increased 19.4% on an organic basis.

The company reported net income of $­­­76.9 million, or $1.97 per share, compared to $3.0 million, or $1.36, the prior year.

During the quarter, Applied renamed its Fluid Power & Flow Control segment to Engineered Solutions. The name was changed to reflect the evolution in the segment’s business profile, scope of products and solutions, and value proposition. Organic sales growth during the quarter was 20.3% in the Service Center segment and 17.8% in the Engineered Solutions segment.

“Demand within our served end markets remains relatively firm, and we are executing well on internal initiatives aimed at expanding our organic growth potential long term," said Neil A. Schrimsher, president and CEO. "At the same time, we remain focused on managing inflationary pressures and leveraging our operating structure.”

For fiscal 2023, Applied now projects EPS of $6.90 to $7.55 (prior $6.65 to $7.30), sales growth of 5% to 9% including 6% to 10% on an organic basis.