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Mar 31, 2020
Applied Industrial Technologies Q3 2020 Earnings Report
Net sales decreased and a net loss was reported due to market softness and the impact of the COVID-19 pandemic.
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Fiscal 2020 guidance was withdrawn due to the evolving impact of the COVID-19 pandemic.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
Revenue by Segment
Service Center Revenue
CapyFin.com 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