Applied Sales Dip, Profit Ticks Up In Q1

The company posted a 4.8 percent year-over-year decrease in organic sales, 2.8 which was attributable to sales in upstream oil & gas subsidiaries.

Cleveland, OH-based Applied Industrial Technologies — No. 15 on Industrial Distribution's 2016 Big 50 List — reported its fiscal results for its 2017 first quarter ended Sept. 30 on Wednesday.

The figures were highlighted by a 2.7 percent year-over-year decrease in total sales and a 4.8 percent decrease in organic sales. Acquisitions increased sales by 2.4 percent, while currency headwinds had a negative 0.3 percent impact. Of the organic decrease, 2.8 percent was attributable to sales in upstream oil & gas subsidiaries.

Applied's Q1 profit of $27.4 million was up from $24.3 million a year earlier.

The company — which launched a new e-commerce website in August — maintained its full-year fiscal 2017 sales outlook, forecasting a range of negative 3.0 percent decline to 1 percent growth.

"While we are maintaining our full-year earnings guidance, our bias is above the midpoint of our projected range," said CEO Neil Schrimsher. 'We do anticipate traditional seasonality coupled with fewer sales days in our second quarter, along with ongoing benefits from our restructuring activities. In addition, we expect some cost increases from our talent initiatives and technology investments as we move through fiscal 2017."

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