Brady Corp., a Milwaukee-based provider of identification solutions, reported a fiscal second quarter net loss of $90.0 million, or $1.72 per share, compared to a net profit of $24.2 million, or 46 cents per share, in the same period a year ago.
The quarter included a non-cash impairment charge of $115.7 million for the write down of goodwill in the Asia-Pacific region.
The company’s quarterly sales fell 2.6 percent to $320.6 million from $329.0 million in the second quarter of fiscal 2011.
"Today we announced an impairment charge related to our Asian business. As discussed earlier, reduced sales to our largest customer and increasing competitive pressures have led to this action. This month we began the process of splitting our Asia business into two dedicated teams – one team to focus on our die-cut business and the other team to focus on our MRO and identification businesses. This change should help increase our focus on both businesses as we work to accelerate the growth of our MRO business and improve growth and profitability of our die-cut business," said Brady president and chief executive officer Frank Jaehnert. "We are encouraged by the continued recovery of the American economy and the strong profitability of our business in the Americas, but remain concerned with the European economy. Our focus going forward will be on expanding our business in emerging economies and higher growth vertical markets, moving to more digital business models and continuing to introduce innovative new products.”
