Applied Industrial Reports Big Q2 Sales Gain

Acquisition volume helped Applied's sales growth nearly reach 20 percent, while the company noted low oil prices has created challenges.

Applied Industrial Technologies, No. 13 on Industrial Distribution's 2014 Big 50 List, on Thursday reported its 2015 second quarter fiscal sales and earnings for the 3-month period ended Dec. 31.

The numbers were highlighted by net sales for the quarter reaching $691.7 million, an 18.9 percent increase over Q2 2013. Net income for the quarter rose 14.7 percent to $29.7 million, compared to $25.9 in the same period last year. Earnings per share rose 18 percent.

For the 6 month period, sales increased 17.4 percent to $1.39 billion, while net income went up 11.4 percent to $58.8 million.

Commenting on the results, Applied’s President & Chief Executive Officer Neil A. Schrimsher said, “Applied is a strong, diversified industrial distributor, and we are pleased with the continued sales and earnings growth in the second quarter. Our overall sales increase reflects 15.8 percent of acquisition related volume coupled with a 4.5 percent rise in our core underlying operations, offset by a negative foreign currency translation impact of 1.4 percent.

“Looking forward, we see an industrial economic environment that continues to present opportunities for organic and acquired growth," he continued. "While the recent decline in oil prices creates some challenges, we are fully engaged in executing our acquisition integration plans as well as our broader growth initiatives across our industrial served markets.