Applied Industrial Technologies Updates Earnings Guidance; Increases Dividend

(RTTNews) - Applied Industrial Technologies (AIT) narrowed its earnings per share and sales guidance by raising the lower-end of the ranges. The updated fiscal 2017 earnings per share guidance is between $2.50 and $2.60 per share on a sales change of negative 2.0% to up 1.0%. Analysts polled by Thomson Reuters expect the company to report profit per share of $2.58. Analysts' estimates typically exclude special items.

The company's Board increased the quarterly cash dividend to $0.29 per common share, representing the eighth dividend increase since 2010 and a cumulative increase of more than 70% in the quarterly dividend over this period. The dividend is payable on February 28, 2017, to shareholders of record on February 15, 2017.

Second-quarter net income was $24.1 million, or $0.61 per share, compared with $23.9 million, or $0.61 per share, in the second quarter of fiscal 2016. Net sales were $608.1 million, a decrease of 0.4% compared with $610.3 million in the same quarter a year ago.

The company noted that the overall sales decrease for the second-quarter is impacted by one less selling day which accounts for a 1.6% decline and unfavorable foreign currency translation of 0.5%, partially offset by a 1.3% increase from acquisition-related volume and 0.4% organic growth.