Applied Industrial Technologies Inc. on Thursday reported a record quarter to close out its latest fiscal year.
The Cleveland distributor said net sales for its fiscal fourth quarter jumped 18.5% compared to the same quarter last year, climbing from $896 million to a new quarterly record of $1.1 billion. Organic sales rose 18.7% and acquisitions added 0.3%, but foreign currency translation dented the numbers by 0.5%. Sales in the company’s service center segment increased 21%, while its fluid power and flow control segment saw a 14% increase.
Applied reported quarterly net income of $79 million — or $2.02 per diluted share — and EBITDA of $120 million. Both also set new records.
For the full fiscal year, Applied reported $3.8 billion in sales, a 17.8% increase from the previous year’s $3.2 billion. Net income jumped from $145 million to $257 million year-over-year, which translated to an increase in earnings per share from $3.68 to $6.58.
Company executives noted that Applied saw a strong June despite inflation and supply-chain issues, and that they have yet to see “any meaningful signs of slowing” heading into the 2023 fiscal year. The company issued an earnings forecast of $6.65 to $7.30 per share for the new year, which would reflect sales growth of 3% to 7%.
The company also announced plans to buy back up to 1.5 million shares of company stock.
“As we move into fiscal 2023, organic sales are up by a mid-teens percent through early August compared to prior-year levels, while order and backlog trends remain positive,” Applied President and CEO Neil Schrimsher said in a statement. “We are mindful of greater economic uncertainty that has manifested in recent months, and know how to execute if industrial activity were to slow.”
