Cleveland-based Applied Industrial Technologies (NYSE: AIT), a value-added distributor and technical solutions provider of industrial motion, fluid power, flow control, automation technologies and related maintenance supplies, reported sales for its fiscal 2024 third quarter ended March 31, 2024, of $1.1 billion.
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That was up 1.3% over the prior year period.
Organic sales growth was 0.7%, reflecting a 2.6% increase in the Service Center segment and a 3.2% decrease in the Engineered Solutions segment.
Profit was $97.2 million.
Year-to-date, sales were $3.3 billion, up slightly, and profit was $282 million.
The distributor also announced an agreement to acquire Grupo Kopar, a provider of automation technologies across Mexico. The acquisition adds 200 associates to the AIT automation platform.
“Third-quarter sales exceeded our expectations with the year-over-year trend gradually improving as the quarter progressed. Growth was led by our core Service Center operations where our technical industry position and internal initiatives are augmenting steady break-fix demand,” said Neil A. Schrimsher, Applied’s CEO. “In addition, we remain positive on our Engineered Solutions segment ahead of fiscal 2025 considering a constructive outlook across technology, automation, and process markets. Lastly, EBITDA margins were impacted by unfavorable expense absorption and mix against modest sales growth during the quarter. We expect these headwinds to alleviate near-term, and we remain on track to achieve record cash generation for the year.”
