Brady Corp. caps robust fiscal year; CHRYSPAC moves to airport warehouse; ZBB Energy’s losses deepen
Brady Corp. caps robust fiscal year
Brady Corp. today reported fiscal fourth quarter net income of $21.6 million, or 41 cents per share, up from $19.2 million, or 36 cents per share, in the same period a year ago.
The Milwaukee company’s quarterly sales increased 12.4 percent to $322.9 million from $287.2 million a year earlier.
The firm’s organic sales increased 10.7 percent with positive growth in all regions. Regionally, sales were up 14.7 percent in the Americas, 9.6 percent in Europe and 5.2 percent in the Asia-Pacific region.
For the full fiscal year, Brady’s net income increased 16.9 percent to $82.0 million from $70.1 in the previous year.
"Brady had a strong fourth quarter and finished the year on a positive note. In particular, we were pleased to see double-digit organic growth in the fourth quarter and positive organic growth in all our regions for the second straight quarter, as well as significant improvement in our net income in the fourth quarter. These strong financial results were due to our continued focus on cost controls, as well as execution of our growth strategies including launching several new products. We also returned to acquisition activity this year after taking a pause last year due to the global economic crisis," said Brady president and chief executive officer Frank Jaehnert. "I’m also happy to report that yesterday our board of directors announced that we will increase our dividend to shareholders for the 25th straight year."
Looking forward, Brady chief financial officer Thomas Felmer said, "As we look to fiscal 2011, we believe that the overall global economy will continue to improve, albeit slowly. As a result, we anticipate mid-single-digit organic revenue growth in fiscal 2011, with more significant profitability improvement in the second half of the year as our continued investment in profitability improvement initiatives begin to yield benefits. For fiscal 2011 we expect earnings per diluted Class A Common Share of between $1.95 and $2.15. This guidance is based on current exchange rates, a full-year tax rate of 26 percent, capital expenditures of between $25 million and $30 million, depreciation and amortization of $50 million, and diluted weighted average common shares outstanding consistent with that of July 31, 2010. Our guidance excludes additional expected pretax restructuring charges of approximately $12 million to $15 million or $0.17 to $0.21 per diluted share."
CHRYSPAC moves to airport warehouse
CHRYSPAC (Chrysalis Packaging & Assembly Corp.) is marking its 10th business anniversary by relocating to an 87,000-square-foot warehouse in the “Aerotropolis” business district across from General Mitchell International Airport on Milwaukee’s south side.
The company’s new headquarters are located at 130 W. Edgerton Ave.
Bill Beckett, the firm’s president and chief executive officer, said, “CHRYSPAC now has a more efficient plant and the option to expand at this location as business grows.” The company plans to conduct an open house on Friday, Sept. 17, from noon to 2 p.m., for customers, suppliers and invited guests to tour the firm’s new headquarters.
“The need for a larger facility became apparent more over three years ago when customers began asking if we could to take on larger projects. Because of uncertainty during the recession, we delayed a move until we could see a turnaround in the economy. Last spring, business started picking up, the timing seemed good and the location allowed us to be closer to one of our key customers,” Beckett said.
Following a career in banking and venture capital, Beckett, who is African-American, and a disabled Vietnam Veteran, started CHRYSPAC in 2000 to serve manufacturers seeking local alternatives to off-shore production and to help address the need for entry-level jobs in Milwaukee.
CHRYSPAC specializes in high-touch, high-quality manual and semi-automated production processes. CHRYSPAC provides customized light assembly, kitting, labeling, shrink packaging, quality inspection, sorting, testing and distribution and fulfillment services.
The firm handles low to intermediate volumes for both short- and long-term durations, which require rapid project starts and just–in-time delivery. The company is ISO 9000- certified and supports customers in the transportation, textile, electric utility, military, aerospace, and computer technology industries.
“We employ smart, capable and dedicated people who take care and great pride in their work. Our employees like what they do at CHRYSPAC and so do our customers,” Beckett said.
ZBB Energy’s losses deepen
Menomonee Falls-based ZBB Energy Corp., which made headlines recently by hosting a visit by President Barack Obama, has reported a net loss of $9.6 million, or 74 cents per share, for its full fiscal year.
The company’s annual losses deepened from a net loss of $5.6 million, or 53 cents per share, in the previous year.
The firm’s total revenues for the year grew to $1.5 million from $1.2 million a year earlier.
The company attributed the losses to increases in advanced engineering and development expenses, selling, general and administrative expenses, and impairment expenses, totaling $4.2 million.
"Management has adopted a plan with multiple financing upsides and is very confident that this plan will provide necessary funding for the next year. Although we have a comprehensive business and financing strategy in place, there is not absolute certainty, however, that the company can continue to finance its growth strategy. Therefore, we plan to include the going concern disclosure that was added in last quarter in our June 30, 2010 Form 10k filing until a greater margin of error can be realized in the balance sheet and burn rate of the company," said Eric Apfelbach, president and chief executive officer of ZBB. "I’m more bullish on ZBB’s future than ever. We’ve experienced a number of changes this past year that have been challenging. I believe, however, that we’ve now created a solid foundation on which to build the company. We have funding vehicles in place to fund the company for the next year. We have products under development that position ZBB uniquely in the energy storage and renewables markets. We are executing on a sales and marketing strategy that will allow us to realize the enormous market potential of the energy storage and renewables markets."
