Cleveland, Ohio-based Applied Industrial Technologies on Oct. 27 reported fiscal 2023 first-quarter net sales of $1.1 billion, a 19.1% increase over the same quarter a year ago. That change includes a 0.2% increase from acquisitions, partially offset by a negative 0.5% impact from foreign currency translation, the company said.
Applied Industrial reported net income of $76.9 million and an EPS of $1.97, up 45% over the prior-year quarter.
During fiscal 1Q 2023, the company renamed its Fluid Power & Flow Control segment to Engineered Solutions. The name was changed to “reflect the evolution in the segment’s business profile, scope of products and solutions, and value proposition,” Applied Industrial said. Organic sales growth during fiscal 1Q was 20.3% in the Service Center segment and 17.8% in the Engineered Solutions segment.
“The first quarter was a strong start to our fiscal year, with sales and EBITDA growth sustaining solid momentum across both segments,” said Neil A. Schrimsher, Applied’s President and CEO. “Demand within our served end markets remains relatively firm, and we are executing well on internal initiatives aimed at expanding our organic growth potential long term. At the same time, we remain focused on managing inflationary pressures and leveraging our operating structure. This is reflected by gross margin and EBITDA margin expansion, and a 45% year-over-year increase in EPS during the quarter. Overall, these results provide further evidence of our execution and the supportive tailwinds from our differentiated industry position, footprint, and strategy.”