Applied Industrial Technologies, Inc. (NYSE:AIT) Q1 2024 Earnings Call Transcript

Ken Newman: Right. Last quarter I think you gave us — and sorry if I missed this, but I think you gave us — you sized the opportunity funnel in automation. I think there were over 100 open projects last quarter. Did you provide an update to that funnel this quarter or are you willing to?

Neil Schrimsher: No. I didn’t. I would say, it’s in a similar realm higher as it would go along. So there’s some consistency in that. Obviously, many of those projects are moving to the next stage of the funnel. Plus teams are looking in areas to add to that. So if I draw the comparison to last quarter, it would be greater.

Ken Newman: Understood. Maybe if I could just squeeze one more in. Obviously, it seems like the biggest headwind, the only headwind really that you saw this quarter was primarily in the technology sector outside of the tough comps. But I’m just curious if you could just give any kind of other end market information on where you’ve seen any outsized deceleration, if any, in some of the other verticals you serve?

Neil Schrimsher: Yeah. So we touched on technology. I think the only other one that could be presenting some headwinds, aggregates that we’d see in some areas and around the construction and building materials on that side. I think the stack up, as we talked about on the top 30 industries, all-in-all favorable, right, as it compared to last quarter. And many of those that are in the top half of the 30, doing well. But along with the technology, I think that aggregate side are ones that would be declining year-over-year.

Ken Newman: Understood. Very helpful. Thanks again.

Neil Schrimsher: Thank you.

Operator: And there are no further questions at this time. I’ll turn the call back to you for closing remarks.

Neil Schrimsher: I just want to thank everyone again for taking the time to join us today. And we look forward to talking with you throughout the quarter. Thanks.

Operator: That does conclude the conference call for today. We thank you for your participation and ask that you please disconnect your lines.