Roughly two months after completing its $784 million acquisition of fluid power products distributor FCX Performance, Applied Industrial Technologies reported its 2018 third quarter fiscal results on Thursday, which showed major sales gains from the FCX addition along with strong organic growth.
Cleveland, OH-based Applied — No. 12 on Industrial Distribution's 2018 Big 50 List — reported Q3 sales of $827.7 million, up 21.8 percent year-over-year (YoY), with organic sales up 6.7 percent. Total Q3 profit of $36.6 million also jumped 24.1 percent YoY, operating profit of $56.4 million increased 23.6 percent and gross profit of $239.5 million gained 25.5 percent.
By segment, Applied's Service Center Q3 sales of $601 million increased 4.8 percent YoY, with organic sales up 4.4 percent. Applied's Fluid Power & Flow Control segment sales more than doubled YoY, thanks to FCX, soaring 114.6 percent YOY to $227 million. Organic Fluid Power sales jumped 18.7 percent.
"Our solid third quarter results reflect broad-based execution across our business groups, along with the expected two-month contributions from the recent acquisition of FCX Performance," Applied president and CEO Neil Schrimsher said. "We are excited about the significant opportunities for growth and our expanding value-added capabilities that further enhance our differentiation and provide benefits for all Applied stakeholders."
The FCX Performance acquisition added approximately 68 locations and 1,000 employees to Applied. Columbus, OH-based FCX was No. 30 on ID's Big 50 List.