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Applied Industrial Technologies F2Q08 (Qtr End 12/31/07) Earnings Call Transcript

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2008-01-23 18:41:54.0

Tags: Applied Industrial Technologies Inc.

Question-and-Answer Session

Operator

(Operator Instructions). We'll take our first question from Matt Duncan with Stephens.

Matt Duncan - Stephens

Good afternoon guys and congrats on a nice progress in the quarter.

David Pugh

Hey, thanks Matt.

Matt Duncan - Stephens

The first question I've got is really, kind of, with regard to the outlook that you guys have been talking about here. And Ben, maybe, you, kind of, referred to this a little bit, but can you talk just a little about, maybe just anecdotally: what you're hearing from your customers about what their expectations are for the next few monthes? I know you mentioned that they are growing more cautious on the economy, but just in general, kind of: what are your senses, your customers are feeling is going on right now in the marketplace?

Ben Mondics

Matt, I think you stated it well, I think those caution out there, but we have yet see any downturn like you would read in the newspapers. So, we are optimistic, but I think like our customers we are cautious based on all the indicators, the macro economic indicators we have seen and everything you read in the media, but right now we have not seen as of we are at.

Matt Duncan - Stephens

And then may be just to give us a better sense of the directionality of your business right now: are you comfortable talking about month-to-month sales trend? I know you have done so at some, and declined to do some, in the past, but: just what is the month-to-month trend look like? And then we are three weeks in to January here: how is the core looking so for today?

Mark Eisele

Yeah, Matt this is Mark. We tried to avoid talking about those month-to-month trends. I think especially in the quarter that just ended here with December with the holiday moths and their week, typically seasonality here with our sales, in the month of December being with some of our lighter sales in any month through out the entire yea. So what we are really looking at is how we are doing comparative to plan and for the planned sales and I would say for the quarter just ended we were hitting those numbers each of those months.

David Pugh

And Matt, right now that the projections are more hyped than in with an actual results and I don’t know what's caused the election here or what’s going on, but we are still seeing fairly strong demand.

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