Applied Industrial Technologies (NYSE: AIT), Cleveland, Ohio, on Wednesday reported full-year sales of $3.2 billion, down 6.5% compared to a year ago. Net income for the year was $24 million compared with $144 million in the prior-year period.
“I want to thank our associates for their strong effort and support throughout fiscal 2020 including the exceptional response in recent months to the ongoing COVID-19 pandemic,” said Neil A. Schrimsher, Applied’s president CEO. “We have adapted well with all of our locations fully operational and playing a vital role in keeping essential industries productive, while understanding our requirements during this slower demand environment. This resiliency was apparent during the quarter with decremental margins on adjusted operating income in the mid-teens despite a high-teen sales decline, as well as strong cash generation further enhancing our balance sheet and flexibility as we enter fiscal 2021.”
The company reported sales of $725.1 million for fiscal fourth quarter ended June 30, a decrease of 17.9% compared with the same quarter a year ago. The change in sales included a 1.5% increase from acquisitions, partially offset by an approximate 1% negative impact from foreign currency translation. Excluding these factors, sales decreased 18.4% on an organic basis reflecting a 21.1% decline in the service center segment and an 11.8% decline in the fluid power and flow control segment.
Net income for the quarter was $30 million, compared with $39.8 million in the fourth quarter of fiscal 2019.