Applied's Q3 sales drop 15 percent

Bearings and power transmission distributor expects no relief in 2009
Victoria Fraza Kickham -- Industrial Distribution, 4/23/2009 3:25:49 PM

In keeping with the tough economic climate, Applied Industrial Technologies announced a drop in sales and earnings for its fiscal third quarter on Wednesday.
The bearings and power transmission products distributor's sales dropped 14.8 percent, to $451.6 million, and earnings declined 51 percent, to $11.6 million, compared to the same period in 2008.
For the nine months ended March 31, 2009, Applied's sales were $1.5 billion, down 4 percent compared to the same period in 2008; net income for the period was down 29 percent and earnings per share declined nearly 28 percent to $1.17.
Applied's chairman and CEO David L. Pugh said the results were no surprise and pointed to sales generation and margin management as the company's greatest challenges in the current environment.
"In light of this, we have made prudent moves to reduce costs in line with demand, with a strong focus on asset management. As a result, our cash generation continues to be strong, which puts us in a solid strategic position going forward," Pugh said in a statement announcing the results. "The future remains difficult to forecast as the economic turmoil continues. At this time, we see no relief in this calendar year. ..."
Pugh re-affirmed the company's full-year earnings guidance of $1.30 to $1.70 per share and said sales should be at, or close to, the low end of its guidance of $1.95 billion to $2.1 billion.