Milwaukee-based Brady Corp. announced a fiscal fourth quarter net loss of $39.4 million, or 77 cents per share, compared with a net loss of $110.4 million, or $1.89 per share, in the fourth quarter of 2014.
The label product manufacturer’s operating loss totaled $32.8 million, compared with a $116 million operating loss in the same period a year ago.
Revenue was $288.6 million in the fourth quarter, down from $316.7 million in the fourth quarter of 2014.
The company has been working to reduce its selling, general and administrative expense to “dig out” of its losses, leaders said in today’s earnings call. Brady recorded $2.8 million in restructuring charges in the quarter, compared with $810,000 in restructuring charges in the same period a year ago. It recorded $46.9 million in impairment charges, which were attributed to the write down of intangible assets in the Workplace Safety Segment, compared with $148.6 million in impairment charges in the fourth quarter of 2014.
“Our fourth quarter financial results did not meet our expectations. We realized an organic sales decline in our Identification Solutions business, and our gross profit margin deteriorated more than anticipated,” said J. Michael Nauman, Brady president and chief executive officer. “We completed the facility consolidations this quarter, but we continue to face operational inefficiencies. We have a full-time team dedicated to the facilities most impacted, we’re making improvements every day, and we expect to realize operational improvements and improved organic sales in the back half of fiscal 2016. We are increasing our focus on customer service and are making foundational improvements in our cost structure, which combined with disciplined capital allocation, will drive increased shareholder value over the long-term.”