Brady Corp. (BRC) reported third-quarter net income from continuing operations of $21.8 million or $0.42 per Class A nonvoting share, compared to $28.0 million or $0.53 per share last year. Adjusted profit from continuing operations was $28.7 million or $0.55 per Class A nonvoting share compared to $29.9 million or $0.56 per share prior year.
Net earnings was $4.23 million or $0.08 per Class A nonvoting share compared to $27.65 million or $0.52 per share last year.
Sales from continuing operations increased to $305.7 million from $275.4 million. Organic sales were down 4.7 percent.
On average, six analysts polled by Thomson Reuters expected the company to report profit per share of $0.60 for the quarter. Analysts' estimates typically exclude speical items. Analysts expected revenue of $368.38 million for the quarter.
The company expects its fourth-quarter earnings from continuing operations per Class A nonvoting common share to range from between $0.45 and $0.55, exclusive of restructuring charges and certain other items. Analysts expect the company to report fourth-quarter profit per share of $0.61.
Brady Corp. also reported that it plans to sell its Asia-based Die-Cut business. The company said it will continue to operate the business as a going concern and execute its improvement plans while engaged in the divestiture process. The business, consists of the manufacture and sale of products such as gaskets, meshes, heat dissipation materials, antennae, dampers, filters, and similar products sold primarily into the electronics industry with a concentration in the mobile-handset and hard-disk drive industries.
Brady's President and CEO, Frank Jaehnert, said, "we no longer consider this business core to our strategy and believe that our Die-Cut customers and our employees will be better served by being with a company where Die-Cut is a core product offering."
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