Applied Industrial Technologies Reports Record 4th Quarter and Year-end Results
* 4th quarter earnings per share up 27.3% on 4.7% sales gain
* Fiscal 2007 earnings per share up 22.9% on 6.0% sales gain
Applied Industrial Technologies (NYSE: AIT) today reported record sales and earnings for its fourth quarter and fiscal 2007 year ended June 30. Fiscal 2007 sales increased 6.0% to $2,014,109,000 from $1,900,780,000 in fiscal 2006. Net income for the year rose 19.0% to $86,022,000 versus $72,299,000 in the previous year. Earnings per share for the year increased 22.9% to $1.93 compared with $1.57 last year.
Net sales for the fourth quarter increased 4.7% to $528,025,000 from $504,197,000 in the comparable period a year ago. Net income for the quarter increased 22.2% to $24,640,000 compared to $20,165,000 last year. Fourth quarter earnings per share increased 27.3% to $0.56 from $0.44 last year.
Commenting on results, Applied Chairman & Chief Executive Officer David L. Pugh said, "Fiscal 2007 was a record sales year for Applied, though the economic expansion was less robust than it was a year ago. The current slump in the housing industry has impacted some of our key related markets, as has the sluggish performance by the automobile manufacturing sector. Offsetting the slowdown in sales growth, we have had good focus on operating fundamentals.
"Our operating margin increased from 6.1% last year to 6.7% in fiscal 2007. Combined with appropriate asset control, this allowed us to once again generate significant cash flow, giving us a strong balance sheet with which to pursue other strategic growth opportunities. As certain segments of the economy improve, we believe we are in a strong position to leverage sales gains into even stronger earnings performance.
“Looking ahead, we expect to continue our growth in fiscal 2008 and achieve earnings of $2.05 to $2.15 per share on sales of $2.10 to $2.18 billion.”
During 2007, the Company purchased 1.4 million shares of the Company’s common stock on the open market for approximately $34 million. These shares represent approximately 3% of the shares outstanding. At June 30, 2007, the Company had remaining authorization to repurchase 1.5 million shares on the open market.
Applied will host its fourth quarter conference call for investors and analysts at 4 p.m today. The call will be conducted by Chairman & CEO David L. Pugh, President Bill L. Purser, Executive Vice President & COO Ben Mondics, and CFO Mark O. Eisele. To join the call, dial 1-800-818-5264, or use the live audio webcast accessible at http://www.Applied.com. A replay of the teleconference will be available August 9 – 23 by dialing 1-888-203-1112, passcode 1941226.
The Company will hold its Annual Meeting of Shareholders at 10:00 a.m., Tuesday, October 23, 2007, at its Corporate Headquarters, One Applied Plaza (E. 36th & Euclid Avenue), Cleveland, Ohio. August 27, 2007, is the record date for determining shareholders entitled to notice of and to vote at the Annual Meeting.
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