Applied Industrial Technologies Reports Record Results for Fiscal 2012 First Quarter

CLEVELAND, Oct. 25, 2011 /PRNewswire/ -- Applied Industrial Technologies (NYSE: AIT) today reported first quarter fiscal 2012 sales and earnings for the three months ended September 30, 2011.  

Net sales for the first quarter increased 9.9% to a record $579,574,000 from $527,501,000 in the comparable period a year ago.  Net income for the quarter increased 27.1% to $26,382,000 or $0.61 per share compared to $20,755,000 or $0.48 per share last year.  

Commenting on the Company's performance, Applied's Chairman & Chief Executive Officer David L. Pugh said, "We are pleased to report a solid start to the fiscal year with continued growth and profitability for the quarter.  Our sales growth combined with a continuing emphasis on managing the operating fundamentals allowed us to post strong earnings.  

"Of notable significance, we generated a first quarter operating margin of 7.5%, up from 6.6% a year ago.  Our strong performance is a result of numerous ongoing strategic initiatives, including a continuing focus on cost control and asset management, that serve to increase our efficiency and productivity.    

"As we look ahead, we see an industrial market that is experiencing real growth and offers continued opportunities for expansion," stated Benjamin J. Mondics, President and Chief Operating Officer for Applied.  "Based on the current state of the industrial economy, we are maintaining our full fiscal 2012 guidance for earnings per share between $2.40 and $2.55, on expected sales of $2.35 billion to $2.45 billion."

During the first quarter of fiscal 2012, the company purchased 640,000 shares of its common stock in open market transactions for $18.2 million.  

On October 17, 2011, Applied announced that Neil A. Schrimsher, age 47, would succeed David L. Pugh as the Company's CEO.  Mr. Pugh is retiring effective today after nearly 13 years of service to Applied.  Mr. Schrimsher, formerly Executive Vice President of Cooper Industries, will assume those duties following today's annual shareholder meeting.

The Company will host its quarterly conference call for investors and analysts at 4 p.m. ET on October 25, 2011. To join the call, dial 1-800-774-6070 or 1-630-691-2753 (for International callers) using passcode 6908413.  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 6908413.

With approximately 470 facilities and 4,600 employee associates across North America, Applied Industrial Technologies is an industrial distributor that offers more than 4 million parts critical to the operations 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, plus solutions to meet inventory and storeroom management needs that help provide enhanced value to its customers. For its fiscal year ended June 30, 2011, Applied posted sales of $2.2 billion.  Applied can be visited on the Internet at http://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 "see," "expect," "will," "guidance," 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