Applied Industrial Technologies Reports Fiscal 2013 Second Quarter Results and Increases Dividend

CLEVELAND, Jan. 31, 2013 /PRNewswire/ -- Applied Industrial Technologies (NYSE: AIT) today reported second quarter fiscal 2013 sales and earnings for the three months ended December 31, 2012. 

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Net sales for the second quarter increased 3.4% to $589.5 million from $570.4 in the comparable period a year ago.  Net income for the quarter increased to $27.0 million, or $0.64 per share, compared to $20.9 million, or $0.49 per share, last year. 

For the six months ended December 31, 2012, sales increased 4.4% to $1.20 billion from $1.15 billion in the same period last year.  Net income increased 19.6% to $56.6 million, or $1.33 per share, compared to $47.3 million, or $1.11 per share, last year.

Commenting on results, Applied's Chief Executive Officer Neil A. Schrimsher said, "With a modest increase in sales, our cost controls and efficiency gains helped generate a solid increase in earnings and profitability for the quarter.  Our gross profit margin of 27.6% reflects a 30 basis point improvement over last year's second quarter, and our 6.9% operating margin represents a 110 basis point increase over the prior year period. 

"While some of the recent macroeconomic headwinds will continue as we move into the second half of our fiscal year, we remain optimistic about the overall North American industrial economy for calendar 2013.  We are focused on driving operating performance in the current environment and implementing programs that support our long-range strategic plan for growth and profitability – organically, via acquisition and through our technology investments. 

"At the midpoint of our fiscal year, and given the current economic environment, we are now projecting earnings per share to be in the range of $2.70 to $2.90 on revenue growth expectations of 4% to 7%." 

In addition, Mr. Schrimsher announced today that the Company's Board of Directors declared a 10% increase in the quarterly cash dividend to $0.23 per common share.  The dividend is payable on February 28, 2013, to shareholders of record on February 15, 2013.  "We are confident in our ongoing business position, and we are committed to generating increased shareholder value, including paying an attractive dividend."

The Company will host its quarterly conference call for investors and analysts at 10 a.m. ET on January 31.  The call will be conducted by CEO Neil A. Schrimsher, President & COO Benjamin J. Mondics, and Vice President & CFO Mark O. Eisele.  To join the call, dial 1-888-771-4371 or 1-847-585-4405 (for International callers) prior to the scheduled start using passcode 34021417.  A live audio webcast can be accessed online at www.applied.com.  A replay of the call will be available for two weeks by dialing 1-888-843-7419 or 1-630-652-3042 (International) using passcode 34021417.

With more than 500 facilities and 5,000 employee associates, Applied Industrial Technologies is a leading industrial distributor that offers more than four million parts to serve the needs of MRO and OEM customers in virtually every industry.  In addition, Applied provides engineering, design and systems integration for industrial and fluid power applications, as well as customized mechanical, fabricated rubber and fluid power shop services.  Applied also offers maintenance training and inventory management solutions that provide added value to its customers.  Applied can be visited on the Internet at www.applied.com.

This press release contains statements that are forward-looking, as that term is defined by the Securities and Exchange Commission in its rules, regulations and releases. Forward-looking statements are often identified by qualifiers such as "will," "expect," "project," and similar expressions.  Applied intends that such forward-looking statements be subject to the safe harbors created thereby.  All forward-looking statements are based on current expectations regarding important risk factors including trends in the industrial sector of the economy, and other risk factors identified in Applied's most recent periodic report and other filings made with the Securities and Exchange Commission.  Accordingly, actual results may differ materially from those expressed in the forward-looking statements, and the making of such statements should not be regarded as a representation by the Company or any other person that the results expressed therein will be achieved. Applied assumes no obligation to update publicly or revise any forward-looking statements, whether due to new information, or events, or otherwise, except as required by law.

SOURCE Applied Industrial Technologies