Business News
Brady Corporation Reports Record Sales, Net Income and Cash Flow for Fiscal 2008 Fourth Quarter and Year
Wednesday 17. September 2008 - Brady Corporation (NYSE:BRC) today reported record results for its fiscal 2008 fourth quarter and fiscal year ended July 31, 2008.
Sales in the fiscal 2008 fourth quarter rose 9 percent to $396.8 million compared to sales in the fourth quarter of fiscal 2007 of $362.8 million. The increase was comprised of acquisition growth adding 3 percent and foreign currency translation contributing 6 percent to sales growth. Organic growth was flat compared to the prior year’s quarter. Regionally, sales were up 16 percent in Europe and 20 percent in Asia/Pacific; sales in the Americas region were flat. The consolidation of the Brady Americas and Direct Marketing/People ID Americas businesses under single leadership was finalized in the fourth quarter and as such, segment results are reported accordingly beginning this quarter.
Net income for the fiscal 2008 fourth quarter was up 33 percent to $34.8 million or $0.64 per diluted Class A Common share, compared to $26.2 million or $0.48 per diluted Class A Common share in the fourth quarter of fiscal 2007, which included cost reduction charges of $5.4 million after tax in the quarter or $0.10 per share.
Brady’s fiscal 2008 net sales rose 12 percent to $1.523 billion compared to $1.363 billion in sales in fiscal 2007. Organic growth was flat; acquisitions and foreign currency translation each added 6 percent to total sales results. Net income for fiscal 2008 rose 21 percent to $132.2 million or $2.41 per diluted Class A Common share, compared to $109.4 million or $2.00 per share in fiscal 2007. Net income results for fiscal 2007 included cost reduction charges of $8.3 million after tax or $0.15 per share.
“We are very pleased with our results in fiscal 2008, especially in light of the challenging economic environment. Of particular note is Asia’s return to core growth in the fourth quarter with total segment sales up 20 percent and profit up 40 percent following a deliberate re-focus on higher margin products and the success of our cost-control efforts put in place last fiscal year,” said Brady President and CEO Frank M. Jaehnert.
“Cash flow from operations was a solid $73 million in the fourth quarter, up 30 percent from the prior year fourth quarter; and $226 million for the year, up 66 percent from fiscal 2007,” said Brady Chief Financial Officer Thomas J. Felmer. “We see a challenging global economy in front of us this fiscal year and will continue to drive working capital improvements and look for ways to keep our cost structure in line. As a result of the recent material changes in currency markets and current economic conditions, we are revising our guidance for fiscal 2009 from sales of between $1.56 to $1.59 billion, to sales of between $1.52 and $1.55 billion; and from net income of between $145 and $152 million and earnings per diluted share of between $2.63 to $2.75, to net income of between $140 and $145 million and diluted earnings per share between $2.54 and $2.63. In keeping with prior practice, this guidance does not assume any future acquisitions.”