Applied Industrial Technologies (NYSE:AIT) stocks was under pressure on 10th August, 2018 but recovered over 2.1% on 13th August, 2018 (as of 11:26 AM GMT-4; Source: Google finance). Net sales rose 31.7% to $897.7 million which was $216.2 million more than the previous year. But, the net income decreased from $1.34 per share in the previous year to $1.03 in the current quarter with $52.9 million.
Acquisitions contributed to the sales by 22.1% whereas the impact of foreign currency exchange added another 30 basis points. Not considering the impact the sales per day increased by 2% sequentially. As per segment revenue, the sales in the Service Centre-Based Distribution segment grew by $58 million r 10.2% yearly with an increase in the acquisitions by 20 basis points. There was an increase in the Fluid Power and Flow Control segment to $159 million or 133.8% compared with previous year and acquisitions of this segment created 126.1% of the yearly segment growth. The sales for the U.S. operations rose $199 million 0r 34.4% year-over-year ignoring the acquisition impact sales increased by 8.5% comprising 7.7% days adjusted organic growth and 0.8% benefit from the incremental half-sales day. The gross profit percentage stood at 29.4% whereas the gross profit percentage for the core business landed at 28.6%.
The selling, distribution and administrative expenses rose $45 million or 30.6% against pcp while acquired businesses led to 26.9% yearly growth. As a result, EBIDTA was $87 million or 9.7% of sales. The effective income tax rate was 33% while for the upcoming year the rate is expected to be in the range of 24%-26%. The cash generated was $99.4 million which was $13.3 million more than the previous year quarter. EBIDTA for the year was $278 million which was 9% of sales including the 20 basis points.
Through their dedicated associates, enhanced business systems, strategic investments, and best-in-class suppliers, the company continue to strengthen their capabilities which includes the critical core products offering, expanding value added services, leadership and engineered fluid power, and flow control solutions, growing geographic reach and channels to market.