Brady Corporation Reports Fiscal 2Q 2020 Results

Brady Corporation reported its financial results for its fiscal 2020 second quarter ended Jan. 31, 2020.

Income before income taxes increased 15.4% to $42.4 million for the quarter ended Jan. 31, 2020, compared to $36.7 million in the same quarter last year. Net income for the quarter ended Jan. 31, 2020, increased 14.8% to $33.6 million compared to $29.2 million in the same quarter last year. Earnings per diluted Class A Nonvoting Common Share were $0.62 for the second quarter of fiscal 2020, compared to $0.55 in the same quarter last year.

Sales for the quarter ended Jan. 31, 2020, declined 2%, which consisted of an organic sales decline of 1.2% and a decrease of 0.8% from foreign currency translation. Sales for the quarter ended Jan. 31, 2020, were $276.7 million compared to $282.4 million in the same quarter last year.

By segment, sales declined 1.8% in Identification Solutions and declined 2.6% in Workplace Safety, which consisted of organic sales declines of 1.3% in Identification Solutions and 1% in Workplace Safety.

Income before income taxes increased 9.6% to $83.9 million for the six-month period ended Jan. 31, 2020, compared to $76.6 million for the six-month period ended Jan. 31, 2019.

Net income for the six-month period ended Jan. 31, 2020, increased 18.7% to $71.1 million compared to $59.9 million in the same period last year. Earnings per diluted Class A Nonvoting Common Share were $1.32 for the six-month period ended Jan. 31, 2020, compared to $1.13 in the same six-month period last year.

Sales for the six-month period ended Jan. 31, 2020, declined 2.1%, which consisted of an organic sales decline of 0.8% and a decrease of 1.3% from foreign currency translation.

Sales for the six-month period ended Jan. 31, 2020, were $563.6 million compared to $575.6 million in the same period last year. By segment, sales declined 1.6% in Identification Solutions and declined 3.4% in Workplace Safety, which consisted of organic sales declines of 0.7% in Identification Solutions and 0.9% in Workplace Safety.

“This quarter marks our 18th consecutive quarter of year-on-year pre-tax income growth,” said J. Michael Nauman, Brady’s president and CEO. “Global demand for industrial products has declined in many markets which led to a modest decrease in organic sales this quarter. Our investments in developing innovative new products and our relentless focus on executing sustainable efficiency gains through-out our manufacturing facilities and SG&A structure enabled Brady to once again post solid financial results in a challenging industrial economic environment.”

“In the first half of this year, we increased our gross profit margin, decreased selling, general and administrative expenses, increased earnings, and increased net cash provided by operating activities all while continuing to invest in our future. This solid financial performance combined with a balance sheet that provides significant flexibility for future investments and to return funds to our shareholders, puts Brady in a strong financial position,” said Brady CFO Aaron Pearce.