Applied Industrial Technologies Reports Record Sales and Earnings for Fiscal 2013

CLEVELAND, Aug. 14, 2013 /PRNewswire-FirstCall/ -- Applied Industrial Technologies (NYSE: AIT) today reported results for its fourth quarter and fiscal 2013 year ended June 30, 2013.

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Fiscal 2013 full-year sales were a record $2.46 billion, up 3.7% from fiscal 2012 sales of $2.38 billion. Net income for the year increased to a record $118.1 million, or $2.78 per share, compared with $108.8 million, or $2.54 per share, in fiscal 2012. 

Net sales for the fourth quarter were $640.5 million, up 3.3% from $620.0 million for the comparable period a year ago. Net income for the quarter was $32.3 million, or $0.76 per share, compared with last year's fourth quarter net income of $32.0 million, or $0.75 per share.

Commenting on the results, Applied's Chief Executive Officer Neil A. Schrimsher said, "We marked the Company's 90^th year of strength in distribution with a record performance in fiscal 2013. Despite some macroeconomic headwinds that moderated sales growth for most of the year, our consistent operating discipline enabled us to translate 3.7% sales growth into a 9.4% increase in earnings per share and a 7.2% operating margin, up from 7.1% last year. Shareholders' equity increased 13.0% to $759.6 million compared with $672.1 million at the prior year's end.

"We achieved solid operating margin results, while devoting significant resources to the implementation of our new ERP system. We are continuing with the phased deployment across our U.S. service center network and will be fully operational in the United States by the end of fiscal 2014. As locations move to our common platform, we are enhancing customer service capabilities and enabling continuous operational improvements for years to come.

"We enter fiscal 2014 with a strong foundation, a debt-free balance sheet, and a focused strategic plan for accelerated growth and profitability. While we are proud of our past and recent accomplishments, we are confident that we can and will do even better – driving the right actions and making the appropriate investments to further improve our performance. Our leadership team and dedicated associates are committed to realizing our full potential through activities that expand our value-add, extend our reach, and enhance our capabilities to serve our customers and generate shareholder value.

"Moving into fiscal 2014, we remain optimistic about the general industrial economy for the balance of 2013 and anticipate further economic improvements throughout calendar 2014. For fiscal 2014, we are forecasting a sales increase of 4% to 6% and earnings per share in the range of $2.90 to $3.15 per share."    

At June 30, 2013, the Company had remaining authorization to purchase 1,141,500 additional shares.

Applied will host its quarterly conference call for investors and analysts at 10 a.m. ET on August 14. The call will be conducted by CEO Neil A. Schrimsher and 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 35272715. 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 35272715.

With more than 500 facilities and 5,000 employee associates, Applied Industrial Technologies is a leading industrial distributor that offers more than five 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 "will," "anticipate," "forecast" 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