Applied Industrial Technologies, Inc. Reports Consolidated Earnings Results for the Second Quarter and Six Months Ended December 31, 2017; Raises Earnings Guidance for the Fiscal Year 2018; Provides Aggregate Effective Tax Rate of Return Guidance for the Fourth Quarter; Provides Effective Tax Rate Guidance for the Fiscal 2019
January 25, 2018 at 02:21 pm
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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%.
Applied Industrial Technologies, Inc. is a value-added distributor and technical solutions provider of industrial motion, fluid power, flow control, automation technologies, and related maintenance supplies. The Companyâs segments include Service Center Based Distribution and Engineered Solutions. The Service Center Based Distribution segment operates through local service centers and distribution centers with a focus on providing products and services addressing the maintenance and repair of motion control infrastructure and production equipment. Its products include industrial bearings, motors, belting, drives, couplings, pumps, linear motion products, hydraulic and pneumatic components, filtration supplies, and hoses. The Engineered Solutions segment includes its operations that specialize in distributing, engineering, designing, integrating, and repairing hydraulic and pneumatic fluid power technologies, and engineered flow control products and services.
Applied Industrial Technologies, Inc. Reports Consolidated Earnings Results for the Second Quarter and Six Months Ended December 31, 2017; Raises Earnings Guidance for the Fiscal Year 2018; Provides Aggregate Effective Tax Rate of Return Guidance for the Fourth Quarter; Provides Effective Tax Rate Guidance for the Fiscal 2019