Brady sales fall 3.4%
Brady Corporation said its sales for the fiscal 2013 first quarter were down 3.4 percent to $337.6 million compared to $349.5 million in the first quarter of fiscal 2012.
Organic sales fell 1.9 percent, the impact of foreign currency translation decreased sales by 2.1 percent, and acquisitions added 0.6 percent. By segment, organic sales decreased 0.7 percent in the Americas, 3.2 percent in EMEA and 2.5 percent in the Asia-Pacific region.
Net income in the fiscal 2013 first quarter was down 16.9 percent to $27.2 million compared to $32.7 million in the same quarter last year. Excluding the losses in the first quarter of fiscal 2013 from the sales of Brady Medical, a medical die-cut business headquartered in Texas, and Varitronics, a business headquartered in Minnesota serving the education market, net income was down 7.1 percent to $30.4 million.
Brady’s president and chief executive officer, Frank M. Jaehnert, said the company plans to shift resources to higher growth opportunities in Central Europe, the Middle East, and Africa.
"In addition, we are continuing to prune our portfolio of businesses. As we look to the remainder of fiscal 2013, we believe there is limited likelihood that the macro-economy will provide a tailwind. We therefore will continue on the path to create our own growth story by further investing in geographic expansion; expanding globally in certain focus markets, such as aerospace and mass transit, chemical, oil and gas, and food and beverage processing; new product development; customer conversion; and expansion of our digital capabilities to provide the best overall buying experience for our customers,” he said.
The company expects organic sales to remain flat for the full fiscal year 2013.
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