Business News
Brady Corporation Reports Financial Results for Fiscal 2011 First Quarter
Thursday 18. November 2010 - Brady Corporation (NYSE:BRC) today reported financial results for its fiscal 2011 first quarter ended October 31, 2010.
Net income in the fiscal 2011 first quarter increased 21.3 percent to $26.3 million compared to $21.7 million in the first quarter of fiscal 2010. Excluding $2.6 million in after-tax restructuring charges, net income was up 18.9 percent to $28.9 million compared to $24.3 million in the same quarter last year.
Earnings per diluted Class A Common Share were $0.50 in the first quarter of 2011 compared to $0.41 in the prior year quarter. Excluding after-tax restructuring charges, earnings per diluted Class A Common Share increased 19.6 percent to $0.55 in the first quarter of fiscal 2011, compared to $0.46 per diluted share in the prior year’s first quarter.
Sales for the quarter were up 3.5 percent to $329.6 million compared to $318.5 million in the first quarter of fiscal 2010. Organic sales increased 2.0 percent in the quarter and acquisitions added another 2.0 percent to sales. Currency exchange reduced sales by 0.5 percent in the quarter.
“I’m pleased with the continued improvement in our profitability and gross profit margin as a direct result of our on-going initiatives to streamline our processes and improve our profitability through various activities including those stemming from the Brady Business Performance System (BBPS),” said Frank M. Jaehnert, Brady’s president and chief executive officer. “We also continue to invest in growth initiatives, especially our investment in developing new, proprietary products as well as growth though business acquisitions, both within our core markets and near-in adjacencies.”
“We are encouraged by the traction we have seen in our productivity and cost saving initiatives. As a result of this and the strengthening of certain foreign currencies versus the U.S. dollar, we are increasing our full year fiscal 2011 earnings per diluted Class A Common share guidance from between $1.95 and $2.15 to between $2.05 and $2.25 per share, excluding pretax restructuring charges of $12 to $15 million or $0.17 to $0.21 per share,” said Brady Chief Financial Officer Thomas J. Felmer. “We maintain our mid-single digit sales growth outlook for the balance of fiscal 2011. Our guidance reflects all cost savings we expect to realize this year from these restructuring activities as well as from our BBPS initiatives for operational improvements.”