Applied Industrial Technologies raised its outlook for its full fiscal year after reporting record sales and earnings in the latest quarter.
The Cleveland-based distributor said net sales increased 16.6% in the third quarter of its fiscal year, climbing from $841 million in the same period last year to $981 million in the three months ending March 31.
The jump included a 0.4% increase from acquisitions and a 1.6% benefit due to an extra selling day in the latest quarter, both of which offset a slight impact from foreign currency translation. Excluding those factors, sales increased 14.7% on a daily basis, including a 13.6% increase in its service center segment and a 17.6% increase in its fluid power and flow control division.
Net income climbed from $56 million to more than $68 million, while gross profit increased from $247 million to $287 million.
“We had another strong quarter with sales and earnings achieving new records,” Applied President and CEO Neil Schrimsher said in a statement. “Underlying business momentum strengthened further during the quarter, while our technical industry position is supporting greater growth opportunities and our ability to effectively manage through ongoing inflationary pressures industry-wide.”
Schrimsher added that the company would once again raise its outlook for sales and earnings ahead of the final quarter of the fiscal year — the second time it has done so. Applied now expects earnings per share of $6.15 to $6.25 — up from $5.70 to $5.90 — and sales growth of 14.8% to 15.3%, up from 13.6% to 14.1% in the previous forecast.
“While we continue to navigate an extremely dynamic supply chain and inflationary environment, we expect ongoing benefits from our operational execution, inventory management, and internal margin initiatives,” Schrimsher said.