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Cleveland, OH-based MRO products distributor Applied Industrial Technologies reported its 2018 fourth quarter and full-year fiscal results on Friday, showing that this year's $784 million acquisition of FCX Performance spiked overall sales, while organic growth also was strong.

Applied had total Q4 sales of $897.7 million, a 31.7 percent jump year-over-year (YoY) and up 8.5 percent from Q3. Acquisitions contributed 22.1 percentage of that YoY sales increase, while organic sales contributed 9.3 percent of growth.

Applied's Q4 total profit was $40.4 million, down from $52.9 million of a year earlier but up sequentially from $36.6 million in Q3. Q4 EBITDA surged 48.9 percent YoY to $87.0 million. Q4 operating profit of $70.8 million likewise jumped 46.2 percent YoY, while gross profit of $263.7 million increased 34.5 percent.

By segment in Q4:

  • Service Centers sales of $621 million increased 10.2 percent YoY, with organic sales up 8.5 percent.
  • Fluid Power & Flow Control sales of $277 million soared 133.8 percent on the FCX addition, with acquisitions accounting for 126.1 percentage points of that growth. Organic sales increased 6.9 percent.

For the full year 2018, Applied's total sales of $3.073 billion increased 18.5 percent from 2017, with the FCX acquisition responsible for 10.2 percentage points of that growth, as Applied's organic sales increased 8.3 percent. Total profit of $141.6 million increased from 2017's $133.9 million, while 2018 operating profit of $225.8 million improved upon 2017's $175.4 million.

"Fiscal 2018 proved to be an exciting and successful year, including record fiscal-year financial performance and continued progress in enhancing our differentiation as a value-added industrial distributor," said Neil Schrimsher, Applied president and CEO. "We are extremely pleased with the engagement of the FCX Performance team members and our progress to date, and we are even more excited about the growth opportunities in the new fiscal year."

Providing its initial outlook for fiscal 2019, Applied is forecasting a sales increase of 16 to 18 percent.

 

 

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