Applied Industrial Technologies Q2 Adj. Profit Beats View, Hikes Dividend

(RTTNews) - Applied Industrial Technologies Inc. (AIT) on Thursday reported net loss for the second quarter of $5.33 million or $0.14 per share, compared to net income of $38.03 million or $0.97 per share last year.

The latest quarter's results include a non-cash impairment charge of $49.5 million pre-tax and non-routine costs of $7.8 million pre-tax.

Excluding items, adjusted earnings for the quarter were $0.98 per share.

Net sales for the quarter decreased 9.9 percent to $751.3 million from $833.4 million in the prior-year quarter.

On average, analysts polled by Thomson Reuters expected the company to report earnings of $0.74 per share for the quarter on revenues of $736.82 million. Analysts' estimates typically exclude special items.

Based on month to date sales in January and assuming normal seasonal patterns, Applied Industrial Technologies forecast third-quarter sales to decline 3 percent to 4 percent year over year on an organic basis. The Street expects revenue for the quarter to decline 4.8 percent to $790.65 million.

The company also said its board of directors approved an increase in the quarterly cash dividend to $0.33 per common share, payable on February 26, 2021, to shareholders of record on February 16, 2021.