Business News

Brady Corporation Reports Fiscal 2011 Second Quarter Results

Friday 18. February 2011 - Brady Corporation (NYSE: BRC), a world leader in identification solutions, today reported financial results for its fiscal 2011 second quarter ended January 31, 2011.

Second-quarter results:
Sales for the fiscal 2011 second quarter were up 11.2 percent to $329.0 million compared to $295.8 million in the second quarter of fiscal 2010. Organic sales growth was 9.8 percent, acquisitions net of divestitures contributed 1.8 percent to sales, and the impact of foreign currency translation decreased sales by 0.4 percent. By segment, organic sales increased 9.7 percent in the Americas, 12.4 percent in Europe and 6.9 percent in the Asia-Pacific region.
Net income in the fiscal 2011 second quarter was up 61.3 percent to $24.2 million compared to $15.0 million in the same quarter last year. Excluding $1.5 million of after-tax restructuring charges in the second quarter of fiscal 2011 and $2.6 million of after-tax restructuring charges in the same quarter last year, net income was up 46.0 percent to $25.7 million compared to $17.6 million in the same quarter last year.
Earnings per diluted Class A Common Share were up 64.3 percent to $0.46 in the second quarter of fiscal 2011 compared to $0.28 in the second quarter of fiscal 2010. Excluding after-tax restructuring charges, earnings per diluted Class A Common Share increased 45.5 percent to $0.48 in the second quarter of fiscal 2011 compared to $0.33 per share in the same quarter of fiscal 2010.
Six-month results:
Sales for the six-month period ended January 31, 2011 were up 7.2 percent to $658.6 million compared to $614.3 million in the same period last year.
Net income for the six months ended January 31, 2011 was up 37.7 percent to $50.5 million compared to $36.7 million in the same period in fiscal 2010. Excluding $4.2 million of after-tax restructuring charges in the six-month period ended January 31, 2011 and $5.2 million of after-tax restructuring charges in the same period last year, net income was up 30.4 percent to $54.6 million compared to $41.9 million in the same period last year.
Earnings per diluted Class A Common Share were up 37.7 percent to $0.95 for the six-month period ended January 31, 2011 compared to $0.69 in the same period of fiscal 2010. Excluding after-tax restructuring charges, earnings per diluted Class A Common Share increased 30.4 percent to $1.03 for the six-month period ended January 31, 2011 compared to $0.79 per share in the same period of fiscal 2010.
Commentary and Guidance:
“We are pleased to see strong organic sales growth in all our regions, and are encouraged by the substantial growth in earnings resulting from the increased organic sales and our on-going focus on improving profitability,” said Frank M. Jaehnert, Brady’s President and Chief Executive Officer.
“Cash generation remains a highlight for Brady as we delivered $41.4 million of cash flow from operating activities in the quarter, resulting in an increase in our cash balance to $362.3 million at January 31, 2011. Our strong cash position along with our untapped $200 million line of credit provides us with adequate flexibility to take advantage of future growth opportunities,” said Brady Chief Financial Officer Thomas J. Felmer. “As a result of our strong second quarter earnings, we are increasing our full year fiscal 2011 guidance range for earnings per diluted Class A Common share from between $2.05 and $2.25 to between $2.15 and $2.35, excluding pre-tax restructuring charges of $7 to $10 million, or $0.10 to $0.14 per share. We also expect mid-single digit organic sales growth for the balance of fiscal 2011 as sales comparisons become more challenging in the second half of fiscal 2011. Our guidance reflects all cost savings we expect to realize this year from restructuring activities as well as from our Brady Business Performance System initiatives for operational improvements.”