Applied Industrial Technologies, Inc. (NYSE:AIT) Q2 2023 Earnings Conference Call January 26, 2023 10:00 AM ET

Company Participants

Ryan Cieslak – Director, Investor Relations and Treasury

Neil Schrimsher - President and Chief Executive Officer

David Wells - Vice President, Chief Financial Officer and Treasurer

Conference Call Participants

Ken Newman - KeyBanc Capital Markets

Chris Dankert - Loop Capital

David Manthey - Baird

Operator

Greetings and welcome to the Fiscal 2023 Second Quarter Earnings Call for Applied Industrial Technologies. My name is Malika, and I will be your operator for today's call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session. [Operator Instructions] Please note that this conference is being recorded.

I will now turn the call over to Ryan Cieslak, Director of Investor Relations and Treasury. Ryan, you may begin.

Ryan Cieslak

Okay. Thanks Malika, and good morning to everyone on the call. This morning, we issued our earnings release and supplemental investor deck detailing our second quarter results. Both of these documents are available in the Investor Relations section of applied.com.

Before we begin, just a reminder, we'll discuss our business outlook and make forward-looking statements. All forward-looking statements are based on current expectations subject to certain risks and uncertainties, including those detailed in our SEC filings. Actual results may differ materially from those expressed in the forward-looking statements. The company undertakes no obligation to update publicly or revise any forward-looking statement. In addition, the conference call will use non-GAAP financial measures, which are subject to qualifications referenced in those documents.

Our speakers today include Neil Schrimsher, Applied's President and Chief Executive Officer; and Dave Wells, our Chief Financial Officer.

With that, I'll turn it over to Neil.

Neil Schrimsher

Thanks Ryan, and good morning, everyone. We appreciate you joining us. As usual, I'll begin with some perspective and highlights on the key drivers of our results, including an update on industry conditions as well as expectations going forward. Dave will follow with more detail on the quarter's financials and provide additional color on our outlook and guidance, which we've raised this morning. And then I'll close with some final thoughts.

So overall, we had another solid quarter with favorable performance across really all our businesses. Year-over-year organic sales growth strengthened, exceeding 21% in both segments. Our teams are doing an exceptional job at managing cost and driving continuous improvement initiatives.