CLEVELAND, Ohio — On Wednesday Applied Industrial Technologies (NYSE: AIT) reported results for its fourth quarter and fiscal 2014 year ended June 30.
Net sales for the quarter were $654.6 million, an increase of 2.2 percent compared with $640.5 million in the same quarter a year ago. Net income for the quarter was $29.7 million, or $0.71 per share, compared with $32.3 million, or $0.76 per share, in the fourth quarter of fiscal 2013.
For the 12 months ended June 30, 2014, sales were $2.460 billion, essentially flat compared to $2.462 billion last year. Net income was $112.8 million, or $2.67 per share, compared with $118.1 million, or $2.78 per share, in the prior year.
Commenting on the results, Applied's President & Chief Executive Officer Neil A. Schrimsher said, “Fiscal 2014 was a significant year of transition with our ERP deployments and acquisition activity. We enter fiscal 2015 with a great deal of momentum, especially when considering our recent acquisitions of Knox Oil Field Supply and Reliance Industrial Products. We have significantly enhanced our capabilities to serve North American oil and gas markets, and these acquisitions will add approximately $240 million of annual sales to our fiscal 2015 results.
“Overall, the new fiscal year includes many opportunities to accelerate our growth and profitability — organically, via continued acquisition activity, and through our investments in technology and talent. We have a strong foundation, expanding capabilities, and a straightforward strategic plan to execute, and we are energized about the year ahead.
“Looking forward, we expect to see improvements in our service center operations and fluid power businesses, supported by an improving industrial economic environment. For fiscal 2015, we are forecasting a sales increase of 13 to 16 percent and earnings per share in the range of $2.95 to $3.20 per share. Included in these numbers are our recent acquisitions which will provide a 10 percent sales increase in fiscal 2015, along with an expected EPS boost of $0.17 to $0.22 per share.”
During the fourth quarter, the Company purchased 264,900 shares of its common stock in open market transactions for $12.7 million. During the full fiscal year, the Company purchased 759,900 shares for $36.7 million. At June 30, 2014, the Company had remaining authorization to purchase 381,600 additional shares.
With more than 560 facilities and 5,700 employee associates, Applied Industrial Technologies is a leading industrial distributor that offers more than five million parts to serve the needs of MRO and OEM customers in virtually every industry. In addition, Applied provides engineering, design and systems integration for industrial and fluid power applications, as well as customized mechanical, fabricated rubber and fluid power shop services. Applied also offers maintenance training and inventory management solutions that provide added value to its customers. Applied can be visited online at www.applied.com.
