Applied sales down 2.7 percent
Applied Industrial Technologies reported fiscal 2017 first quarter net sales of $624.8 million, a decrease of 2.7% compared with $641.9 million in the same quarter a year ago.
The overall sales decrease for the quarter reflects a 2.4% increase from acquisition-related volume, offset by a 4.8% decrease in underlying operations and a negative 0.3% foreign currency translation impact. Of the 4.8% decrease in underlying operations, 2.8% is attributable to sales in upstream oil and gas subsidiaries, with the remainder associated with sales in traditional core operations.
Net income for the quarter was $27.4 million, or 70 cents per share, compared with $24.3 million, or 61 cents, in the first quarter of fiscal 2016.
The company maintained its full-year fiscal 2017 earnings guidance of between $2.40 and $2.60 per share on a sales change of negative 3.0% to up 1.0%.
"In the current industrial economic environment, we are committed to helping ourselves - through our business performance; expanding our product, service and solution offerings; and creating opportunities with new and existing customers. While we are maintaining our full-year earnings guidance, our bias is above the midpoint of our projected range. We do anticipate traditional seasonality coupled with fewer sales days in our second quarter, along with ongoing benefits from our restructuring activities. In addition, we expect some cost increases from our talent initiatives and technology investments as we move through fiscal 2017," said Applied president and chief executive officer Neil A. Schrimsher.