(October 31, 2010)
Applied Industrial Technologies has posted a better than expected quarterly profit, as a recovery in the manufacturing sector drove the industrial parts distributor's sales, and raised its full year earnings outlook.
The company, which distributes bearings, power transmission and fluid power components among others, raised its 2011 earnings outlook to USD 1.80 to USD 2.05 from USD 1.70 to USD 1.95 a share. It backed its 2011 revenue view of USD 2.05 to USD 2.25 billion.
Analysts on average expect 2011 earnings of USD 1.85 a share on revenue of USD 2.17 billion.
Mr David Pugh CEO of Applied Industrial Technologies said that "We believe that we will continue to see moderate growth in our daily sales run rates from the current levels throughout the remaining three quarters of our fiscal year."
Applied Industrial's results follow a strong performance by its peers WW Grainger Inc and Fastenal Co, which also benefited from a rebound in the manufacturing sector.
According to a quarterly survey by Manufacturers Alliance, the US manufacturing sector has held up well during an uneven economic recovery and should continue to expand, but likely at a slower pace.
For the quarter ended September 30th 2010, net income was USD 20.8 million as compared with USD 11.2 million, a year ago. Sales at the company, which also competes with MSC Industrial Direct Co Inc, rose about 21% to USD 527.5 million.
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