Applied Industrial Slips To Loss In Q3

(RTTNews) - Applied Industrial Technologies (AIT) reported that its third-quarter net loss was $82.8 million or $2.14 per share, compared to net income of $16.54 million or $0.42 per share in the prior year.

The latest-quarter result included a non-cash goodwill impairment charge of $131.0 million pre-tax ($3.07 per share), non-routine costs of $6.0 million pre-tax ($0.12 per share), and a $1.0 million non-routine tax benefit ($0.03 per share).

Excluding these items, the company reported non-GAAP adjusted net income of $39.6 million, or $1.02 per share.

Net sales decreased 6.2% to $830.8 million from $885.4 million in the prior year. The change in sales includes a 1.9% increase from acquisitions and a 1.6% benefit from one extra selling day, partially offset by a negative 0.2% impact from foreign currency translation.

Excluding items, sales decreased 9.5% on an organic daily basis reflecting a 10.9% decline in the Service Center segment and a 6.0% decline in the Fluid Power & Flow Control segment.

Analysts polled by Thomson Reuters expected the company to report a loss of $1.01 per share and revenues of $858.98 million. Analysts' estimates typically exclude special items.

The company has withdrawn its fiscal 2020 financial guidance, due to the evolving and highly uncertain impact of the COVID-19 pandemic.

The company also announced that its board declared a quarterly cash dividend of $0.32 per common share, payable on May 29, 2020, to shareholders of record on May 15, 2020.