AIT acquires Gulf Coast Bearing

Gulf Coast Bearing serves customers in South Texas

Applied Industrial Technologies (NYSE: AIT) has acquired the assets of Gulf Coast Bearing & Supply Co. of Corpus Christi, Texas. Gulf Coast Bearing & Supply is a full line bearing and power transmission distributor with locations in Corpus Christi and Pharr, Texas. Terms of the sale were not disclosed.

Founded in 1985, Gulf Coast Bearing & Supply serves a broad range of customers in South Texas, primarily in the petrochemical, food processing, construction and agriculture industries. Both existing locations will become fully functional Applied® service centers with access to more than four million parts.

"Gulf Coast Bearing & Supply is one of the leading independent bearing and power transmission distributors in its territory and will be an important addition to the North American network of Applied Industrial Technologies service centers," says Todd A. Barlett, Vice President – Acquisitions and Global Business Development for Applied. "The acquisition is a win-win for the customers of both companies as we expand our product offering and technical support into this region."

"We're proud to be part of a team that can provide world-class customer support in South Texas," says Jim Breen, President of Gulf Coast Bearing & Supply. "As part of Applied, our customers will benefit from a wider selection of products and outstanding technical service."

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, 2010, Applied posted sales of $1.89 billion.

AIT sales rose 21% in Q1

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.”

Applied Industrial acquires UZ Engineered Products

Deal expands distributor’s business with government sector nationwide

Applied Industrial Technologies has acquired specialty MRO products distributor UZ Engineered Products from Cleveland-based State Industrial Products Corp.

Terms of the deal were not disclosed.

UZ sells MRO supplies to a broad range of customers, with a focus on the government sector. The Cleveland-based distributor’s products include fasteners, fittings, lubricants, electrical components, welding supplies, cutting tools, and other specialty maintenance products.

“UZ is an important addition to our government business sector,” said Todd A. Barlett, vice president--acquisitions and global business development for Applied. “Their product mix, experience and geographic coverage will enhance our existing support for this important market and help us expand our reach across North America. We’re very pleased to welcome their employees to the Applied family.”

UZ Engineered Products has 170 employees and annual sales of approximately $23 million, Applied said in a statement announcing the deal.

UZ’s president, David DeBord, will remain in that role, reporting to Michael L. Coticchia, Applied’s vice president of government business.