Fiscal 2012 was a successful year on multiple fronts 
for Applied Industrial Technologies.  Our business 
performance resulted from sound operating discipline 
and a focus on operational excellence, including:
2012 Financial Highlights:
•	 Record	sales	of	$2.4	billion – an increase of 7.3% 
•	 Record	net	income	of	$108.8	million,	or	$2.54		
per	share – an EPS increase of 13.4% 
•	 Operating	margin	of	7.1%	– solid improvement  
over last year’s 6.8%
•	 Cash	generated	from	operations	of	$90.4		
million	– adding to our financial strength and 
flexibility
•	 Return	of	$64.8	million	to	shareholders	in	
dividends	and	share	repurchases – providing 
enhanced shareholder value
•	 Improved	after-tax	return	on	assets	of	11.8% –  
evidence of our continued focus on asset 
management
When combined with results from  
prior years and viewed over time,  
these achievements equate to:
•	 10	consecutive	quarters	of	growth	– upon  
which we can build 
•	 Excellent	cash	generation – to support  
our growth initiatives
•	 Ongoing	reinforcement	of	our	Four		
Cornerstones	– Margin Enhancement, Asset 
Management, Cost Control and Profitable  
Sales Growth
Our Financial Highlights provide a snapshot of our 
noteworthy achievements; however, there’s much more 
to our story.  Throughout Applied, we have a shared 
belief that we can and will profitably grow our business.  
The future we envision for the Company is made possible 
by our strong foundation and financial position, by our 
dedicated associates, by our best-in-class suppliers, 
and, of course, by our strong customer base.  We are 
confident and committed to expanding our value-add, 
extending our reach, and enhancing our technology to 
serve our customers and generate shareholder value.
BENJAMIN J. MONDICS
NEIL A. SCHRIMSHER
To Our Shareholders:
1Applied Industrial Technologies, Inc. and Subsidiaries
25358_AIT_Report_WT.indd   1 8/28/12   4:23 PM