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Oct 31, 2020
Brady Q1 2021 Earnings Report
Brady's financial performance saw sales decline, but pre-tax income increased due to efficiency gains.
Key Takeaways
Brady Corporation reported a decrease in sales by 3.4%, driven by a 4.9% organic sales decline, while experiencing a 1.5% increase from foreign currency translation. Despite the sales dip, pre-tax income increased due to focus on sustainable efficiency gains. The company's Workplace Safety business showed strength, driven by COVID-19 related products.
Sales declined by 3.4% due to a 4.9% organic sales decline, offset by a 1.5% increase from foreign currency translation.
Income before income taxes and losses of unconsolidated affiliate increased by 1.6% to $42.2 million.
Diluted EPS was $0.64, down from $0.70 in the same quarter of the prior year due to a reduced income tax rate last year.
Cash flow from operating activities increased by 61.8% to $62.8 million.
Brady
Brady
Forward Guidance
Brady expects macroeconomic challenges and reduced demand for COVID-19 related products to impact financial results for the quarter ending January 31, 2021.
Challenges Ahead
- Reduction in demand for products specifically designed to help in the fight of COVID-19
- Macro-economic challenges caused by additional government lockdowns
- Impact to financial results for the quarter ending January 31, 2021