Brady Corp. reports robust quarter; Manufacturers in ASQ survey are optimistic about 2011; Judge overrules union organizing law
Brady Corp. reports robust quarter
Milwaukee-based Brady Corp. today reported fiscal first quarter net income of $26.3 million, or 50 cents per share, up from $21.7 million, or 41 cents per share, in the same Excluding $2.6 million in after-tax restructuring charges, net income was up 18.9 percent to $28.9 million.
Brady Corp.’s sales for the quarter were up 3.5 percent to $329.6 million from $318.5 million a year earlier.
"I’m pleased with the continued improvement in our profitability and gross profit margin as a direct result of our on-going initiatives to streamline our processes and improve our profitability through various activities including those stemming from the Brady Business Performance System (BBPS)," said Frank Jaehnert, Brady’s president and chief executive officer. "We also continue to invest in growth initiatives, especially our investment in developing new, proprietary products as well as growth though business acquisitions, both within our core markets and near-in adjacencies."
"We are encouraged by the traction we have seen in our productivity and cost saving initiatives. As a result of this and the strengthening of certain foreign currencies versus the U.S. dollar, we are increasing our full year fiscal 2011 earnings per diluted Class A Common share guidance from between $1.95 and $2.15 to between $2.05 and $2.25 per share, excluding pretax restructuring charges of $12 to $15 million or $0.17 to $0.21 per share," said Brady chief financial officer Thomas Felmer. "We maintain our mid-single digit sales growth outlook for the balance of fiscal 2011. Our guidance reflects all cost savings we expect to realize this year from these restructuring activities as well as from our BBPS initiatives for operational improvements."
Manufacturers in ASQ survey are optimistic about 2011
The second annual ASQ Manufacturing Outlook Survey shows a vast majority of North American manufacturers are optimistic about an economic uptick at their companies in 2011.
The survey conducted by Milwaukee-based ASQ, the world’s largest network of quality resources and experts, found that 68 percent of respondents employed in the manufacturing sector predict their organizations will experience revenue growth in 2011.
Despite the daunting economic landscape a year ago, 64.7 percent of respondents then predicted that revenue would grow in 2010. This year, when asked if their organization did experience revenue growth in 2010, 67 percent indicated "yes."
More than 1,200 manufacturing professionals from the United States and Canada responded to the online survey Oct. 24-Nov. 5.
The two areas from the survey that showed the most promise were in the area of payroll and operational budgets: Only 18 percent expect a pay freeze in 2011 – compared with to 44.8 percent in 2010 at their organizations. Eighteen percent predict mandatory budget cuts in 2011, whereas 35.2 percent did in 2010
"Though it appears the manufacturing sector is still facing some challenges on the road to full economic recovery, the incremental gains shown in this survey are very promising," said ASQ chair Peter Andres. "However, organizations still need to focus on and increase customer satisfaction, and implement continuous improvement practices to remain competitive."
Judge overrules union organizing law
A state law that took effect in late May designed to help union organizing efforts will not be enforced, under a judgment reached this week in favor of the Metropolitan Milwaukee Association of Commerce (MMAC) and Wisconsin Manufacturers & Commerce (WMC) against the State of Wisconsin.
For more than 60 years, employers have had a federally protected right under the National Labor Relations Act to hold paid, mandatory meetings with employees to discuss various issues related to unions and unionization.
On May 12, Wisconsin became only the second state in the nation (Oregon became the first earlier this year) to pass a law designed to strip employers of their right to hold required meetings with employees to talk about unionization.
In September, the WMC and the MMAC filed suit against the State of Wisconsin and the Department of Workforce Development, seeking to have the amended law declared unconstitutional.
On Nov. 15, Chief U.S. District Judge Charles Clevert Jr. entered a judgment and order in favor of the WMC and the MMAC. The judgment declares that federal labor law allowing such meetings to take place overrides state law.
