Applied Industrial Technologies, Inc. reported consolidated earnings results for the second quarter and six months ended December 31, 2017. For the quarter, the company reported net sales of $667,187,000 against $608,123,000 a year ago. Operating income was $46,715,000 against $37,856,000 a year ago. Income before income taxes was $44,596,000 against $35,767,000 a year ago. Net income was $30,950,000 against $24,085,000 a year ago. Diluted earnings per share were $0.79 against $0.61 a year ago.

For the six months, the company reported net sales of $1,347,888,000 against $1,232,971,000 a year ago. Operating income was $98,552,000 against $81,275,000 a year ago. Income before income taxes was $94,978,000 against $77,237,000 a year ago. Net income was $64,671,000 against $51,456,000 a year ago. Diluted earnings per share were $1.65 against $1.31 a year ago. Net cash provided by operating activities was $21,184,000 compared to $45,658,000 in the prior year quarter. Property purchases were $11,460,000 against $6,710,000 a year ago.

In fourth quarter, company expect aggregate effective tax rate to return to a range of 34% to 34.5%, as company record expense related to the further re-measurement of certain deferred tax assets and liabilities from revised fiscal year 2018 28% rate to the 21% fiscal year 2019 U.S. statutory rate.

For the fiscal year 2018, the company is raising full-year earnings per share guidance to a range between $3.40 and $3.50 per share, on sales which are anticipated to be 6% to 7% higher year-over-year, this equates to a range of approximately $3.29 to $3.39 per share at the prior estimated 34% effective tax rate. Revised guidance includes approximately $0.11 EPS benefit from U.S. tax reform. operational inventory levels to decrease by $20 million to $30 million. still targeting cash generation from operating activities for the fiscal 2018 to be in the range of $150 million to $160 million despite the impact of higher business volumes.

For the fiscal 2018, company expect full year effective tax rate to be in the 31% to 32% range, and expect fiscal year 2019 effective tax rate to range from 23% to 24%.