Brady Corporation’s earnings increase for first quarter

Freeman Staff

Nov. 19, 2015

MILWAUKEE — Brady Corporation reported that its earnings increased $3.2 million during the first quarter of fiscal 2016, which the company attributed to operational efficiencies.

The Milwaukee-based company said its net earnings for the quarter that ended Oct. 31 were $18.7 million compared to earnings from continuing operations of $15.5 million in the same quarter last year. Non-GAAP earnings from continuing operations were $18.4 million for the past quarter.

Sales for the first quarter decreased 8.8 percent to $283.1 million compared to $310.2 million in the first quarter of fiscal 2015. Total organic sales decreased 2.2 percent and foreign currency translation decreased sales by 6.6 percent, according to the company.

“We’re seeing positive gross margin and net earnings impacts from our activities to improve operational efficiencies. In addition, we’re making significant progress improving the overall buying experience for our customers, which as we’ve stated is a top priority for fiscal 2016,” said Brady’s President and Chief Executive Officer J. Michael Nauman in a statement. “Organic sales declined in both business segments in the first quarter, and although we expect that our growth initiatives and slightly easier comparables will improve our year-over-year organic sales growth rate in the second half of the fiscal year, we ultimately expect organic sales growth to be challenged by macro-economic conditions in certain industrial markets and geographies, including North America. We will remain focused on enhancing efficiency and building an organization where local teams are empowered to own and are held accountable for their financial results, which will help us to successfully compete over the long term.“