Cleveland, OH – Applied Industrial Technologies reported results for its fourth quarter and fiscal 2013 year ended June 30, 2013.
Fiscal 2013 full-year sales were a record $2.46 billion, up 3.7% from fiscal 2012 sales of $2.38 billion. Net income for the year increased to a record $118.1 million, or $2.78 per share, compared with $108.8 million, or $2.54 per share, in fiscal 2012.
Net sales for the fourth quarter were $640.5 million, up 3.3% from $620.0 million for the comparable period a year ago. Net income for the quarter was $32.3 million, or $0.76 per share, compared with last year's fourth quarter net income of $32.0 million, or $0.75 per share.
Commenting on the results, Applied’s Chief Executive Officer Neil A. Schrimsher said, “We marked the Company’s 90th year of strength in distribution with a record performance in fiscal 2013. Despite some macroeconomic headwinds that moderated sales growth for most of the year, our consistent operating discipline enabled us to translate 3.7% sales growth into a 9.4% increase in earnings per share and a 7.2% operating margin, up from 7.1% last year.
Shareholders’ equity increased 13.0% to $759.6 million compared with $672.1 million at the prior year’s end.
“We achieved solid operating margin results, while devoting significant resources to the implementation of our new ERP system. We are continuing with the phased deployment across our U.S. service center network and will be fully operational in the United States by the end of fiscal 2014. As locations move to our common platform, we are enhancing customer service capabilities and enabling continuous operational improvements for years to come.
“We enter fiscal 2014 with a strong foundation, a debt-free balance sheet, and a focused strategic plan for accelerated growth and profitability. While we are proud of our past and recent accomplishments, we are confident that we can and will do even better – driving the right actions and making the appropriate investments to further improve our performance. Our leadership team and dedicated associates are committed to realizing our full potential through activities that expand our value-add, extend our reach, and enhance our capabilities to serve our customers and generate shareholder value.
“Moving into fiscal 2014, we remain optimistic about the general industrial economy for the balance of 2013 and anticipate further economic improvements throughout calendar 2014. For fiscal 2014, we are forecasting a sales increase of 4% to 6% and earnings per share in the range of $2.90 to $3.15 per share.”
At June 30, 2013, the Company had remaining authorization to purchase 1,141,500 additional shares.