Milwaukee-based Brady Corp. reported an increase in earnings and net income during the third quarter of fiscal 2016, despite a slight drop in revenue.
The company had net income of $21 million, up 21.9 percent from the previous year. Earnings were up 23.5 percent to 42 cents per diluted share from 33 cents last year. Revenue was down 1.2 percent for the quarter to $286.8 million.
“We continue to realize benefits from our focus on operational efficiency and local accountability, as our gross profit margin, segment profit margins and net earnings have all improved on a year-over-year basis for the third consecutive quarter,” said J. Michael Nauman, Brady’s president and chief executive officer.
He added that organic sales were “essentially flat” and the company expects to see continued economic challenges in some industrial markets and geographies.
“Our top priorities remain unchanged, which are to grow our pipeline of innovative new products and deliver operational efficiencies while serving our customers exceptionally well,” he said.
External sales for the company ID solutions segment were off almost $4 million to $196.9 while the workplace safety segment was flat. Profit in both segments was up more than 11 percent.
The company’s administrative expenses were up about $4.6 million to $29.4 million, but the company did not incur the $4.8 million restructuring costs that occurred in 2015.
