Wednesday, Brady Corp. (BRC), a manufacturer of identification and security products, reported a lower net income for its third-quarter, hurt by 27.5% year-over-year decline in sales as the company said that its business continued to be weak across all geographies and all product lines.
Brady posted third quarter net income of $18.0 million, down 47.7% from $34.4 million in the last year. Earnings per Class A, Class B Voting Common Share were $0.34, compared to $0.63 in the prior year.
On average, six analysts polled by Thomson Reuters expected the company to earn $0.34 per share for the quarter. Analysts' estimates typically exclude special items.
Latest quarter results included after-tax restructuring charges of $1.6 million or $0.03 per share.
Quarterly net sales dropped 27.5% to $276.7 million from $381.9 million a year before. Wall Street analysts had a consensus revenue estimate of $280.60 million for the quarter.
Organic sales were down 19.9% compared to the corresponding period last year, and currency exchange had a negative impact of 7.7% on sales results in the quarter.
Sales to external customers by regional segment, Americas posted third-quarter sales of $125.68 million, compared to $166.4 million a year ago. Europe's sales totaled $85.17 million, compared with $133.42 million in the previous-year quarter.
Sales for Asia-Pacific were $65.87 million in comparison with $82.08 million in the year-earlier quarter. Subtotals sales were $276.73 million, compared to $381.9 million in the same quarter prior year.
For the nine-month period, net income was $50.92 million, compared with $97.41 million in the same period last year. Earnings per Class A Nonvoting Common share were $0.96, compared to $1.77 per share in the year-earlier period. Sales were $921.5 million, down 18.2% from $1.126 billion in the same period last year.
Looking ahead, the company reaffirmed its full-year 2009 earnings per share guidance range of between $1.23 and $1.42. Also, the company still expects 2009 net income in range of $65 million - $75 million, including after-tax restructuring charges of about $20 million.
Excluding restructuring charges, Brady still forecasts net income to be between $85 million and $95 million or $1.61 - $1.80 per share for fiscal 2009. Analysts expect the company to report earnings of $1.60 per share for fiscal 2009.
Frank Jaehnert, President and Chief Executive Officer, said, "Our business seems to be stabilizing for now, however global economic conditions remain uncertain and our visibility is limited. We continue to take actions to reduce cost while investing in key initiatives that will drive growth when the economy improves."
BRC closed Tuesday's trading session at $22.53.
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