Brady Corp. (NYSE:BRC) saw an 11.2% sales increase in the fiscal 2011 second quarter, the identification solutions company reported in a press release on Friday, and raised its outlook for the year.
The quarter, which concluded on Jan. 31, saw $329 million in sales compared with the $295.8 million during the second quarter of the previous year.
Brady, a 1914-founded international manufacturer and solutions marketer, is involved in the electrical, education and medical industries. The company produces high-performance labels and signs, printing systems and software, and die-cut materials.
“We are pleased to see strong organic sales growth in all our regions, and are encouraged by the substantial growth in earnings resulting from the increased organic sales and our on-going focus on improving profitability,” said Brady President and Chief Executive Officer Frank M. Jaehnert.
Net income in the quarter was up 61.3%, to $24.2 million, compared with $15 million during the 2010 second quarter.
“Cash generation remains a highlight for Brady as we delivered $41.4 million of cash flow from operating activities in the quarter, resulting in an increase in our cash balance to $362.3 million at January 31, 2011,” said Thomas J. Felmer, Brady Chief Financial Officer.
Felmer attributed the quarter’s success to a strong cash position and an untapped $200 million line of credit, which gave Brady to flexibility.
“As a result of our strong second quarter earnings, we are increasing our full year fiscal 2011 guidance range for earnings per diluted Class A Common share from between $2.05 and $2.25 to between $2.15 and $2.35, excluding pre-tax restructuring charges of $7 to $10 million, or $0.10 to $0.14 per share,” he said. “We also expect mid-single digit organic sales growth for the balance of fiscal 2011 as sales comparisons become more challenging in the second half of fiscal 2011.”