Cleveland, Ohio-based Applied Industrial Technologies – No. 16 on Industrial Distribution's 2015 Big 50 List – reported its 2016 first quarter sales and earnings on Wednesday for the period ended Sept. 30.
Like for many of ID's Big 50 companies reporting quarterly figures this month, the numbers were somber. Applied posted Q1 sales of $641.9 million, a 8.6 percent decrease over Q1 last year. The company says the decrease reflects a 1.8 percent increase from acquisitions, offset by a negative 3.2 percent impact from currency headwinds, and negative 7.2 percent decrease in core operations. Applied said 4.9 percent of that core operations decrease is due to sales from upstream oil and gas subsidiaries.
Applied's profit for Q1 was $24.3 million, a 16.5 percent drop from last year's $29.1 million. Q4 profit was $28.0 million.
"Our first quarter results reflect the continued impact of reduced demand in many industrial end markets, most notably oil and gas, as well as headwinds from foreign currency translation," said Neil Schrimsher, Applied CEO. "We continue to take a disciplined approach to controlling costs and driving improved efficiencies across our business."
Schrimsher said Applied is now expecting full-year sales to be a decrease of 5 to 7 percent.