Applied Industrial Technologies, Inc. Reports Consolidated Earnings Results for the Second Quarter and Six Months Ended December 31, 2012; Provides Earnings Guidance for Fiscal 2013; Declares Quarterly Cash Dividend, Payable on February 28, 2013
January 31, 2013 at 10:00 am
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Applied Industrial Technologies, Inc. announced consolidated earnings results for the second quarter and six months ended December 31, 2012. For the quarter, the company reported net sales of $589,517,000 compared with $570,397,000 for the same period a year ago. Operating income was $40,569,000 compared with $33,335,000 for the same period a year ago. Income before income tax was $40,981,000 compared with $32,547,000 for the same period a year ago. Net income was $27,043,000 or $0.64 per diluted share compared with $20,935,000 or $0.49 per diluted share for the same period a year ago. With a modest increase in sales, cost controls and efficiency gains helped generate a solid increase in earnings and profitability for the quarter.
For the six months, the company reported net sales of $1,200,036,000 compared with $1,149,971,000 for the same period a year ago. Operating income was $84,887,000 compared with $76,602,000 for the same period a year ago. Income before income tax was $85,733,000 compared with $73,835,000 for the same period a year ago. Net income was $56,575,000 or $1.33 per diluted share compared with $47,317,000 or $1.11 per diluted share for the same period a year ago. Net cash provided by operating activities was $28,886,000 compared with $30,216,000 for the same period a year ago. Property purchases was $6,843,000 compared with $14,022,000 for the same period a year ago.
The Board of Directors declared a 10% increase in the quarterly cash dividend to $0.23 per common share. The dividend is payable on February 28, 2013, to shareholders of record on February 15, 2013.
Given the current economic environment, the company is now projecting earnings per share to be in the range of $2.70 to $2.90 on revenue growth expectations of 4% to 7%. For fiscal 2013, the company expects tax rate to be in the 34.0% to 34.5% range, as the impact of lower effective foreign tax rates continue. ERP spending in fiscal 2013 continues to be in line with expectations. The company expects, fiscal 2013 should be another solid year for generating cash from operations, and expect to achieve a nice improvement from the fiscal 2012 results. The company expects gross profit percentage to slightly improve for the remainder of the year.
Applied Industrial Technologies, Inc. is a value-added distributor and technical solutions provider of industrial motion, fluid power, flow control, automation technologies, and related maintenance supplies. The Companyâs segments include Service Center Based Distribution and Engineered Solutions. The Service Center Based Distribution segment operates through local service centers and distribution centers with a focus on providing products and services addressing the maintenance and repair of motion control infrastructure and production equipment. Its products include industrial bearings, motors, belting, drives, couplings, pumps, linear motion products, hydraulic and pneumatic components, filtration supplies, and hoses. The Engineered Solutions segment includes its operations that specialize in distributing, engineering, designing, integrating, and repairing hydraulic and pneumatic fluid power technologies, and engineered flow control products and services.
Applied Industrial Technologies, Inc. Reports Consolidated Earnings Results for the Second Quarter and Six Months Ended December 31, 2012; Provides Earnings Guidance for Fiscal 2013; Declares Quarterly Cash Dividend, Payable on February 28, 2013