Cleveland-based Applied Industrial Technologies (NYSE: AIT) a distributor and technical solutions provider of industrial motion, fluid power, flow control, automation technologies and related maintenance supplies, reported sales for its fiscal 2024 fourth quarter ended June 30, 2024, were $1.2 billion, up 0.2% over the prior year.
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Profit for the fourth quarter was $103.5 million.
Full-year sales for fiscal year 2024 were $4.5 billion, up 1.5% over the prior year and 0.4% on an organic basis.
Profit for 2024 was $385.8 million.
“Consistent with broader industrial datapoints in recent months, we saw a greater than expected slowdown in end-market demand as the quarter played out,” said Neil Schrimsher, Applied’s president and CEO. “Similar to last quarter, organic sales declines were greatest within the Fluid Power operations of our Engineered Solutions segment reflecting ongoing inventory destocking and reduced production across OEM customers.
“In addition, billing activity within our Service Center segment was more mixed as customers conservatively managed MRO spending within the uncertain business environment. Softer demand conditions have sustained into early fiscal 2025 with organic sales through mid-August trending down by a mid-single-digit percent compared to prior-year levels.”
The company also issued fiscal 2025 guidance and outlook. Assumptions include a projected expected range of down 2.5% to up 2.5%.
“While we remain optimistic on our potential, we are taking a prudent approach to our initial 2025 outlook,” Schrimsher said. “We believe industrial activity could remain muted near term as customers await clarity on interest rates and the upcoming U.S. Election.”
