Brady's 4Q Profit Falls 44 Pct, Shares Drop

MILWAUKEE (AP) — Brady Corp., which makes labels, signs and safety devices, said Friday its fiscal fourth-quarter profit fell 44 percent as weak sales in Europe and the Americas offset lower costs.

The earnings missed Wall Street expectations, and its shares fell 7 percent in morning trading.

For the three months ended in July, the company earbed $19.2 million, or 37 cents per Class B voting share, compared with $34.8 million, or 64 cents per share, in the year-earlier period.

Analysts polled by Thomson Reuters expected, on average, earnings per share of 42 cents.

Revenue decreased 28 percent to $287.2 million from $396.8 million. Analysts expected revenue of $291.3 million.

Expenses dropped 23 percent to $105.8 million and the cost of goods sold retreated 26 percent to $151.1 million.

For the 12 months ending in July, the company earned $70.1 million, or $1.31 per voting share, on sales of $1.21 billion compared with a profit of $132.2 million, or $2.39 per share, on sales of $1.52 billion in the previous 12-month period.

"After a strong first quarter, the global economic downturn caused a 27 percent drop in our sales over the balance of the year," said CEO Frank M. Jaehnert.

He noted the company took steps starting in the second quarter to adjust its cost structure, including reducing its work force.

The company also issued guidance for fiscal 2010 that was within the range of Wall Street's expectations.

In morning trading, shares dropped $2.30, or 7 percent, to $30.76.