Brady 3Q Profit Falls 48 Percent As Sales Slide

MILWAUKEE (AP) — Brady Corp. said Wednesday its profit dropped 48 percent in the fiscal third quarter as sales fell in all of its markets.

The company, which makes labels, signs and safety devices, said its profit dropped to $18 million, or 34 cents per share, from $34.4 million, or 63 cents per share a year ago. Sales decreased by more than 10 percent in each of its major regions, and the stronger dollar also hurt international sales. Revenue fell 28 percent, to $276.7 million from $381.9 million.

Brady's third quarter ended April 30. Thomson Reuters says analysts expected a profit of 34 cents per share and $280.6 million in revenue.

Brady said unfavorable currency exchanges reduced its sales by 7.7 percent. Excluding currency exchange rates, sales in the Americas fell 22.2 percent, European sales shrank 22.8 percent, and sales in the Asia-Pacific region decreased 10.8 percent.

Chief Executive Frank Jaehnert said business appeared to be steadying, but said it was difficult to tell because economic conditions are uncertain.

The company maintained its guidance for fiscal 2009, forecasting a profit of $1.23 to $1.42 per share, or $1.61 to $1.80 per share excluding restructuring costs. Analysts expect $1.60 per share.