02.19.15
Brady Corporation reported its financial results for its fiscal 2015 second quarter ended Jan. 31, 2015.
Sales for the quarter ended Jan. 31, 2015 decreased 2.9% to $282.6 million compared to $291.2 million in the second quarter of fiscal 2014. Total organic sales increased 1.4% and foreign currency translation decreased sales by 4.3%. By segment, organic sales increased 1.9% in Identification Solutions and 0.6% in Workplace Safety. Earnings from continuing operations for the quarter ended Jan. 31, 2015 were $11.6 million compared to $10.5 million in the prior year quarter.
Sales for the six-month period ended Jan. 31, 2015 decreased 1.0% to $592.9 million compared to $598.7 million in the same period in fiscal 2014. Organic sales increased 1.9% and the impact of foreign currency translation decreased sales by 2.9%. By segment, organic sales increased 2.1% in Identification Solutions and 1.5% in Workplace Safety.
Earnings from continuing operations for the six-month period ended Jan. 31, 2015 were $27.1 million compared to $28.7 million in the same period in fiscal 2014.
“This marks the fourth consecutive quarter of organic sales growth for Brady Corporation and the third consecutive quarter of organic sales growth in our Workplace Safety business. Our gross profit margin is also stabilizing as we near completion of our facility consolidation activities. Our gross profit margin finished at 48.9%, which is a 50 basis point improvement over the first quarter of fiscal 2015,” said J. Michael Nauman, Brady’s president and CEO.
“Although our profitability was impacted by costs related to the consolidation of our manufacturing facilities, the level of incremental costs is moderating and we expect completion of these activities by the end of fiscal 2015,” Nauman said. “We are focused on executing business fundamentals to drive organic sales growth and improve profitability while investing in research and development and sales resources in selected industries, as well as building an enhanced, scalable digital platform that will generate value for Brady and its customers.”
“Along with our stabilizing gross profit margins, we are also seeing benefits from our focus on controlling selling, general, and administrative expenses, which should aid in continuing our trend of improving financial results,” said Brady’s CFO Aaron Pearce. “As we look to the second half of fiscal 2015, we also anticipate free cash flow to improve as we systematically reduce our inventory levels, moderate our capital expenditures and increase profitability.”
The company anticipates low single-digit organic sales growth in fiscal 2015, with organic sales growth in both the Identification Solutions and Workplace Safety platforms.
Sales for the quarter ended Jan. 31, 2015 decreased 2.9% to $282.6 million compared to $291.2 million in the second quarter of fiscal 2014. Total organic sales increased 1.4% and foreign currency translation decreased sales by 4.3%. By segment, organic sales increased 1.9% in Identification Solutions and 0.6% in Workplace Safety. Earnings from continuing operations for the quarter ended Jan. 31, 2015 were $11.6 million compared to $10.5 million in the prior year quarter.
Sales for the six-month period ended Jan. 31, 2015 decreased 1.0% to $592.9 million compared to $598.7 million in the same period in fiscal 2014. Organic sales increased 1.9% and the impact of foreign currency translation decreased sales by 2.9%. By segment, organic sales increased 2.1% in Identification Solutions and 1.5% in Workplace Safety.
Earnings from continuing operations for the six-month period ended Jan. 31, 2015 were $27.1 million compared to $28.7 million in the same period in fiscal 2014.
“This marks the fourth consecutive quarter of organic sales growth for Brady Corporation and the third consecutive quarter of organic sales growth in our Workplace Safety business. Our gross profit margin is also stabilizing as we near completion of our facility consolidation activities. Our gross profit margin finished at 48.9%, which is a 50 basis point improvement over the first quarter of fiscal 2015,” said J. Michael Nauman, Brady’s president and CEO.
“Although our profitability was impacted by costs related to the consolidation of our manufacturing facilities, the level of incremental costs is moderating and we expect completion of these activities by the end of fiscal 2015,” Nauman said. “We are focused on executing business fundamentals to drive organic sales growth and improve profitability while investing in research and development and sales resources in selected industries, as well as building an enhanced, scalable digital platform that will generate value for Brady and its customers.”
“Along with our stabilizing gross profit margins, we are also seeing benefits from our focus on controlling selling, general, and administrative expenses, which should aid in continuing our trend of improving financial results,” said Brady’s CFO Aaron Pearce. “As we look to the second half of fiscal 2015, we also anticipate free cash flow to improve as we systematically reduce our inventory levels, moderate our capital expenditures and increase profitability.”
The company anticipates low single-digit organic sales growth in fiscal 2015, with organic sales growth in both the Identification Solutions and Workplace Safety platforms.