Applied Industrial Technologies Reports Record Sales and Earnings for Fiscal 2012

Fiscal 2012 full-year sales were a record $2.4 billion, up 7.3% from fiscal 2011 sales of $2.2 billion. Net income for the year increased to a record $108.8 million, or $2.54 per share, compared with $96.8 million, or $2.24 per share, in fiscal 2011. 

Net sales for the fourth quarter were $620.0 million, up 5.1% from $589.9 million for the comparable period a year ago. Net income for the quarter was $32.0 million, or $0.75 per share, compared with last year's fourth quarter earnings of $28.3 million, or $0.65 per share.

Commenting on results, Applied's Chief Executive Officer Neil A. Schrimsher said, "We had a record fiscal year in 2012, with strong results across the Company. We translated a 7% sales gain into strong earnings growth and cash flow, continuing our sound operating discipline and focus on operational excellence. We are pleased with the operating margin achievement of 7.1% for the year, especially when considering our ERP investment and when compared with 6.8% last year. 

"We were active on the acquisition front during the year, completing three strategic acquisitions in Eastern Canada. In addition, and subsequent to our fiscal year end, we finalized the purchase of SKF Distribution in Australia and New Zealand as announced last week. We are moving ahead quickly on integrating these businesses into Applied and executing our growth strategy for these markets.

"As a leadership team, we have developed a long-range strategic plan to accelerate profitable growth with a focus on expanding our value-add, extending our reach, and enhancing our technology to better serve our customers. Implementation of the plan is underway -- supported by a company-wide commitment to realizing our full potential and generating increased shareholder value.

"Nearer term, we remain optimistic about the industrial economic environment and our ability to execute our strategic plan in the new fiscal year. For fiscal 2013, we are forecasting earnings per share of $2.90 to $3.05. This guidance assumes full-year revenue growth of 9 to 13 percent, including the SKF Distribution acquisition."

During the quarter, the Company purchased 333,100 shares of its common stock in open market transactions for $12.0 million. For the full fiscal year, purchases totaled 997,200 shares for $31.0 million. At June 30, 2012, the Company had remaining authorization to purchase 1,142,800 additional shares.

Applied will host its quarterly conference call for investors and analysts at 4 p.m. ET, today. 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 1-800-927-0469 or 1-847-944-7323 (for International callers) prior to the scheduled start using passcode 32873463. 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 32873463.

With approximately 500 facilities and 4,900 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. Applied intends that such forward-looking statements be subject to the safe harbors created thereby.  Forward-looking statements are often identified by qualifiers such as "forecast," "guidance," and similar expressions. 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 Applied 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.

SOURCE Applied Industrial Technologies