Cleveland, Ohio-based Applied Industrial Technologies announced Jan. 26 the results for its fiscal 2023 second quarter, which ended Dec. 31, 2022.
Applied Industrial — a distributor of industrial motion, fluid power, flow control and automation technologies — reported 2Q net sales of $1.1 billion, a 20.9% increase year-over-year and up from the 19.1% increase in 1Q. The year-over-year 2Q change includes a 0.5% increase from acquisitions, offset by a negative 0.7% impact from foreign currency translation, the company said in a news release. Applied Industrial also posted net sales of $1.1 billion in 1Q23.
The company reported net income of $80.5 billion and an earnings per share of $2.05, up 40.8% year-over-year, according to the release, and a 4.7% increase from 1Q23.
Applied Industrial ranked as the No. 1 Fluid Power Distributor, No. 2 Power Transmission/Bearings Distributor and No. 13 Industrial Distributor on MDM’s 2022 Top Distributors List.
“We had another solid quarter with organic sales growth exceeding 21% against difficult comparisons,” Applied Industrial president and CEO Neil Scrimsher said in the release. “The broader U.S. manufacturing environment remained productive during the quarter, and we continue to benefit from our internal sales initiatives, industry position, and channel capabilities. This is presenting recurring growth opportunities across both legacy and new market verticals. From technical MRO support to advanced engineered solutions, we are playing a broader and more integral role across the industrial supply chain as customers embrace service requirements and investments.
“Overall, these results further demonstrate our enhanced growth profile and earnings power as we capitalize on our strategy and various secular, structural and company-specific tailwinds.”
Baird Equity Research’s Industrial Distribution Group issued a statement Jan. 26 praising Applied Industrial’s impressive performance in 2023’s first two fiscal quarters: “Overall, AIT continues to execute at a very high level and exposure to secular growth drivers continues to drive strong demand even as the industrial economy shows signs of weakening.”