Milwaukee-based Brady Corp. reported fiscal third quarter net income of $17.2 million, or 33 cents per share, down from $24.1 million, or 39 cents per share, in the third quarter of 2014.
Operating income at the identification solution product manufacturer was $24.3 million, down from $26.8 million in the same period a year ago.
Revenue totaled $290.2 million, down from $309.6 million in the third quarter of 2014.
The company attributed the decline to customer service and operational challenges stemming from recent facility consolidations. Workplace Safety segment organic sales also were lower than expected in the quarter. As a result, Brady lowered its guidance for the fourth quarter to 30 to 40 cents per share.
“After just over nine months with Brady, I’m impressed with the dedication of our team as well as the progress we’ve made on our initiatives this fiscal year,” said Brady president and chief executive officer J. Michael Nauman. “I’m confident that we are investing in the right initiatives to deliver shareholder value over the long term. However, we still remain challenged by operational inefficiencies stemming from certain facilities that were recently consolidated, and we are focused on executing business fundamentals to drive organic sales and improve profitability while still achieving efficiency gains over the long term. We are investing in research and development and sales resources in selected industries, as well as building an improved, scalable digital platform that will generate value for Brady and enhance our customer experience.”
