Posted October 28, 2020

Applied Q1 2021 sales decline 12.7 percent

Applied Industrial Technologies reported net sales for its fiscal 2021 first quarter decreased 12.7 percent to $747.8 million from $856.4 million in the prior year.

The change includes a 1.1 percent increase from acquisitions, partially offset by a 0.4 percent negative impact from foreign currency translation. Excluding these factors, sales decreased 13.4 percent on an organic basis reflecting a 14.4 percent decline in the Service Center segment and a 11.2 percent decline in the Fluid Power & Flow Control segment.

Net income of $34.8 million, or 89 cents per share, compared to $38.8 million, or $1.00 per share, in last year's first quarter.

"While demand remains below prior year levels, customer activity appears to be firming, which combined with our internal initiatives drove sequential improvement in underlying sales trends and earnings performance through our fiscal first quarter. Customers are gradually increasing facility utilization and production levels, as evidenced by initial recovery in our local account sales. This is a positive sign for the industrial economy," said Neil A. Schrimsher, president and chief executive officer