Milwaukee-based Brady Corp., a manufacturer of products for identifying components used in workplaces, announced Thursday plans to modify the structure of the company. Beginning Feb. 1, 2023, Brady Corp. will start transitioning to operate under new regional operating segments.
The company will report sales and segment profit based on new operating segments including “Americas & Asia” and “Europe & Australia.”
The Americas & Asia business will be led by Olivier Bojarski, currently the president of Brady Corp.’s Identification Solutions business. The Europe & Australia business will be led by Brett Wilms, currently the managing director of Identification Solutions EMEA and the interim general manager of the company's Workplace Safety business.
[caption id="attachment_544438" align="alignleft" width="163"] Brady Corp. CEO Russell Shaller[/caption]
"By moving to a regional structure, we are better positioning the company for long-term success by aligning the organization with opportunities for future sales growth," said Russell Shaller, president and chief executive officer of Brady Corp. "This new structure will help us accelerate sales growth by taking advantage of the synergies that exist between our current divisions, by utilizing our best go-to-market strategies in each of our key geographies, and by using our increased geographic scale to accelerate new product development while delivering tailored solutions that meet the unique needs of each geography.
Shaller said cost reduction was not the reason for this new regional structure for the company, although Brady Corp. expects to see an improvement of 10 cents to 20 cents of earnings per share beginning in fiscal 2024.
“We expect that any one-time charges from employee severance in fiscal 2023 will be offset by reduced costs over the balance of this fiscal year,” said Shaller.
Brady Corp. will begin to operate under the new segment structure in the third quarter of 2023.
The company’s sales for the quarter ended Oct. 31, 2022, increased 0.3%. Sales were $322.6 million compared to $321.5 million in the same quarter last year. By segment, sales increased 3.1%in Identification Solutions and decreased 9.1% in Workplace Safety, which consisted of an organic sales increase of 8.6% in Identification Solutions and an organic sales increase of 1.2% in Workplace Safety.
“Our ability to execute is driving sustained growth across our businesses,” said Shaller. “Our Identification Solutions segment is performing very well, with organic sales growth and a robust pipeline of new products that help our customers become safer, more efficient, and meet their sustainability goals.”