Applied Industrial lowers 2009 outlook

Source: Supply Chain Digital

Date :10/27/2008 11:31:41 AM

Industrial parts distributor Applied Industrial Technologies lowered its earnings outlook for fiscal 2009 on Monday, October 27, citing uncertainty in the US economy.

In its first-quarter earnings release, the company said it expects full-year earnings of US$1.90 to US$2.15 per share on sales of US$2.2 billion to US$2.3 billion.

It had previously forecast earnings of US$2.22 to US$2.44 per share on sales of US$2.32 billion to US$2.43 billion.

Analysts polled by Thomson Reuters expect earnings per share of US$2.07 on sales of US$2.29 billion, on average.

"In response to the challenging and uncertain economic outlook, we feel fiscal 2009 sales and earnings will be less than our original projection," said Chief Executive David L Pugh.

The company’s first quarter net income slipped to US$22.5 million, or 52 cents per share, from US$24.5 million, or 56 cents per share, a year ago.

Sales for the three-month period ended September 30 increased to US$543.9 million from US$518.5 million.