Applied Industrial Technologies Q3 2020 Earnings Report
Key Takeaways
Applied Industrial Technologies reported a decrease in net sales by 6.2% to $830.8 million compared to the prior year, with a reported net loss of $82.8 million, or $2.14 per share, which includes a non-cash goodwill impairment charge of $131.0 million. Adjusted net income was $39.6 million, or $1.02 per share. The company withdrew its fiscal 2020 financial guidance amid economic uncertainty.
Net sales decreased 6.2% year-over-year to $830.8 million; organic daily sales decreased 9.5%.
The company reported a net loss of $82.8 million, or $2.14 per share, including a $131.0 million goodwill impairment charge.
Adjusted net income was $39.6 million, or $1.02 per share, excluding certain non-routine items.
Fiscal 2020 guidance was withdrawn due to the evolving impact of the COVID-19 pandemic.
Applied Industrial Technologies
Applied Industrial Technologies
Applied Industrial Technologies Revenue by Segment
Forward Guidance
Due to the evolving and highly uncertain impact of the COVID-19 pandemic, the Company is withdrawing its fiscal 2020 financial guidance provided on January 23, 2020.
Positive Outlook
- The Company’s guidance metrics will be reevaluated in coming months as it fully assesses the impact from COVID-19
- The Company continues to take appropriate cost measures
- The Company prepares its fiscal 2021 outlook
- Cost measures implemented to-date include reduced discretionary spending
- The Company is implementing staff alignments
Challenges Ahead
- The impact of the COVID-19 pandemic is evolving and highly uncertain
- The company withdrew its fiscal 2020 financial guidance
- Mid-teen year-over-year organic sales declines on a days adjusted basis during March
- High-teen declines month-to-date in April
- End-market softness within Flow Control operations