text: MANAGEMENT’S DISCUSSION AND ANALYSIS 
  OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 
  
  OVERVIEW  Industrial production increased 0.4% in June after having declined 
  
  0.2% in May. In the manufacturing sector, outputs advanced 
  With more than 4,600 associates across North America, Applied 
  0.7% in June, reversing a decline of 0.7% in May and increased at 
  Industrial Technologies (“Applied,” the “Company,” “We,” “Us” 
  an annual rate of 1.4% in the second quarter. In June, capacity 
  or “Our”) is a leading industrial distributor serving MRO and OEM 
  utilization for manufacturing moved up 0.4% to 77.7%, a rate 
  customers in virtually every industry. In addition, Applied 
  13.9 percentage points above its trough in June of 2009 and was 
  provides engineering, design and systems integration for 
  still 1.1 percentage points below its long-run average. The ISM PMI 
  industrial and fluid power applications, as well as customized 
  registered 49.7 in June, the first time this indicator dropped below 
  mechanical, fabricated rubber and fluid power shop services. 
  50 (its expansionary threshold) since July 2009. We remain 
  Applied also offers maintenance training and inventory 
  optimistic about the U.S. industrial economy for our fiscal 2013. 