The 2020 Mid-Year Economic Update_long

Applied Industrial’s 2Q Sales Down 9.9%

Like most companies, Applied continued to be impacted by the COVID-19 crisis and saw year-to-date sales fall 11.3% over the same period in 2019.
Applied acquisition

Applied Industrial Technologies (NYSE: AIT), Cleveland, Ohio, on Thursday reported sales for the fiscal second quarter ended Dec. 31 of $751.3 million, a decrease of 9.9% compared with the same quarter a year ago. Sales were down 10.5% on an organic basis.

The company reported a loss in the quarter of 5.3 million, compared with a profit of $38 million in the second quarter of fiscal 2020.

“While general economic uncertainty remains, underlying sales improvement has continued into January with organic sales month to date down by a mid-single digit percent year over year,” said Neil A. Schrimsher, Applied’s president CEO. “We have multiple catalysts to expand our market potential and accelerate growth opportunities throughout calendar 2021 and beyond. This activity includes addressing customers’ break-fix MRO requirements, supporting greater demand for specialized engineered solutions, and leveraging our multi-channel cross-selling initiatives. In addition, we are making solid progress expanding our next generation automation capabilities following three acquisitions in the past 16 months, putting us in a strong position to address our customers’ emerging industrial technology and operational requirements. Our balance sheet provides the means to support these growth opportunities and drive additional stakeholder returns as the economic recovery broadens.”

For the first six months of fiscal 2021, Applied reported sales of $1.5 billion, down 11.3% compared to the same period a year ago. Net income for the year was $29.5 million, down from $76.8 million in the prior-year period.

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