Applied Industrial Technologies (AIT, USA) reported record earnings on strong sales, far ahead
of expectations, for its fiscal first quarter 2005 (ended September 20, 2004).
Applied is a key distributor of industrial aftermarket replacement bearings and similar products.
The company also provides engineering and design assistance. Applied has over 4,300 employees in
more than 430 facilities across the United States, Canada and Mexico.
The company once known as Bearings Inc. reported first quarter sales of $413.1 million, up 14% over
the same period a year ago. It run rate, based on first quarter sales, is up almost 12%, to $1.65 billion
from 2004's reported $1.52 billion.
But it was Applied's record earnings which attracted the most attention. The company netted
$13.0 million (3.1% of sales) in the quarter, up more than 170% from 2004's 4.8 million (1.3% of sales).
Cash from operations was $785,000 in the first quarter, from a net outflow of
$3.9 million in first quarter 2004.
Inventory grew in the first quarter from fourth quarter 2004, to $173.4 million from
$159.6 million. First quarter's Accounts Receivable rose to $201.0 million from
fourth quarter 2004's 191.0 million.
CEO David Pugh said, "We were extremely pleased by our first quarter performance. The rebound of the
industrial economy created strong demand for our products and services as industrial plants ran at an increasing
rate of utilization. The strong demand, coupled with our improved business strategies and more efficient
operations, helped us drive our operating margin to 5.2%, more than 100% higher than last year's first quarter."
Mr. Pugh went on to say, "The fundamentals of our business remain very healthy. While somewhat higher, our
inventories are consistent with expected future customer demand. Receivables are well-controlled. Long-term
debt remains low."
Looking forward to second quarter 2005, Mr. Pugh predicted sales will be up again versus year-ago sales,
"between 8% and 12%." While second quarter earnings growth is not expected to match the current pace,
he indicated it could still double from 2004's earnings, despite three fewer sales days
in third quarter 2005 against 2004.
printer-friendly version
- by Bruce A. Carr
from individual research, tips and commercial sources.
Unauthorized reproduction is prohibited.
eBearing.com ... for everything that moves™
Entire contents Copyright 1999-2008, eBearing Inc. All rights reserved.
eBearing.com and "... for everything that moves" are registered
trademarks of eBearing Inc.
printer-friendly version
