UPDATE 2-Applied Industrial Q3 profit beats Street, shares rise
* Q3 EPS $0.27 beats est $0.24
* Q3 revenue drops 15 pct
* Maintains full-year profit view
* Shares rise as much as 11 pct (Recasts, adds analysts' comments, updates share movement)
By Bhaswati Mukhopadhyay
BANGALORE, April 23 (Reuters) - Industrial parts distributor Applied Industrial Technologies Inc (AIT.N: Cotización) posted a better-than-expected third-quarter profit as it reaped the benefits of its cost-cutting measures, sending its shares up 11 percent.
Strong quarterly profit and the implications for future earnings based on the low level of operating costs is what is driving the stock up, analyst Brent Rakers of Morgan, Keegan & Co said. Applied Industrial, which distributes bearings, power transmission components and industrial rubber products, maintained its fiscal 2009 profit view of $1.30 to $1.70 a share. Analysts were expecting $1.39.
However, the company expects fiscal 2009 sales to be at, or close to, the low end of its prior forecast of $1.95 billion to $2.1 billion.
"Sales generation and margin management will continue to be our greatest challenges for the near term as our customers respond to significant consumer withdrawal," Chief Executive David Pugh said in a statement. Continuación...