Applied Industrial Q1 Profit Rises, Beats View ; Cuts FY Guidance

(RTTNews) - Applied Industrial Technologies (NYSE: AIT) reported higher profit for the third-quarter, backed by one-time income tax benefits. In addition, the company said it has acquired oilfield supplier Reliance Industrial Products and announced cutting of its full-year guidance.

For the third-quarter, net income rose to $30.4 million or $0.72 per share from $29.3 million or $0.69 per share in the third quarter of 2013. The results include one-time tax benefits of $2.8 million, or $0.07 per share. On average, 11 analysts polled by Thomson Reuters expected earnings per share of $0.71 for the quarter. Analysts' estimates typically exclude one-time items. However, total sales were slightly down to $618.0 million from last year's $621.7 million. Analysts estimated revenues of $627.23 million for the quarter. The acquisition of Reliance Industrial Products of Nisku, Alberta, Canada would provide incremental earnings per share of $0.12 to $0.15 for fiscal 2015, while it remains neutral to Applied's net income for fiscal 2014. For the full-year 2104, the firm now expects earnings per share in the range of $2.60 to $2.75 versus the previous range of $2.65 and $2.95 per share. The company now projects annual sales between $2.45 billion to $2.48 billion versus the previous guidance of $2.43 billion - $2.49 billion. Analysts estimates full-year earnings per share of $2.75 on revenues of $2.46 billion. Further, the board declared a quarterly cash dividend of $0.25 per share, payable on May 30, 2014, to shareholders of record on May 15, 2014.