Applied also raises its guidance for remainder of fiscal 2011
Applied Industrial Technologies has reported an increase in net sales of 20.5 percent in the first quarter of fiscal 2011 that ended Sept. 30. It reported sales of $527,501,000 from $437,743,000 in the comparable period a year ago. Net income for the quarter increased 85.5% to $20,755,000 or $0.48 per share compared to $11,187,000 or $0.26 per share last year.
“We are pleased with the strength shown by our first quarter sales and operating results,”said David L. Pugh, Applied’s Chairman & Chief Executive Officer. “Our sales showed steady growth over prior year comparables throughout the quarter on the basis of increased demand from the majority of our industrial segments. We see this level of demand continuing for the foreseeable future.
“Our attention to detail in the areas of cost control and asset management allowed us toleverage this sales growth into strong operating income and cash flow. Inventories expanded about $10 million net of acquisitions and price increases, as we increased our stock to safeguard against increased lead times in our supply chain.
“We believe that we will continue to see moderate growth in our daily sales run rates
from the current levels throughout the remaining three quarters of our fiscal year. Based on the strength of our first quarter performance, we are raising our earnings guidance for the full fiscal year 2011 and now expect to achieve earnings of $1.80 to $2.05 per share compared to our previous forecast of $1.70 to $1.95. We are maintaining our full-year sales guidance of $2.05 to $2.25 billion.”