Applied Industrial 1Q Income Cut In Half

CLEVELAND (AP) — Industrial parts distributor Applied Industrial Technologies Inc. on Tuesday reported a 50 percent drop in fiscal first-quarter profit, but the company said sales improved from the previous quarter, showing that the market may be stabilizing.

The company earned $11.2 million, or 26 cents per share, in the three months ended Sept. 30. That's compared with $22.5 million, or 52 cents per share, in the same period last year. Sales fell nearly 20 percent to $437.7 million.

The results still topped estimates of analysts polled by Thomson Reuters, who expected profit of 24 cents per share on $421.1 million in sales.

Sales rose slightly from $425.2 million in the fiscal fourth quarter, which the company said shows "stabilization in what had been a steadily declining pace." Although some of that stabilization may be due to federal stimulus spending, the company said it was optimistic "we have a found a bottom to the recession."

The company said profit margins declined slightly due to heightened price competition, but that it managed inventory well during the period.