Brady Corporation Reports Record Sales, Net Income and Cash Flow for Fiscal 2008 Fourth Quarter and Year

Brady Corporation (NYSE:BRC) today reported record results for its fiscal 2008 fourth quarter and fiscal year ended July 31, 2008.

Sales in the fiscal 2008 fourth quarter rose 9 percent to $396.8 million compared to sales in the fourth quarter of fiscal 2007 of $362.8 million. The increase was comprised of acquisition growth adding 3 percent and foreign currency translation contributing 6 percent to sales growth. Organic growth was flat compared to the prior year’s quarter. Regionally, sales were up 16 percent in Europe and 20 percent in Asia/Pacific; sales in the Americas region were flat. The consolidation of the Brady Americas and Direct Marketing/People ID Americas businesses under single leadership was finalized in the fourth quarter and as such, segment results are reported accordingly beginning this quarter.

Net income for the fiscal 2008 fourth quarter was up 33 percent to $34.8 million or $0.64 per diluted Class A Common share, compared to $26.2 million or $0.48 per diluted Class A Common share in the fourth quarter of fiscal 2007, which included cost reduction charges of $5.4 million after tax in the quarter or $0.10 per share.

Brady’s fiscal 2008 net sales rose 12 percent to $1.523 billion compared to $1.363 billion in sales in fiscal 2007. Organic growth was flat; acquisitions and foreign currency translation each added 6 percent to total sales results. Net income for fiscal 2008 rose 21 percent to $132.2 million or $2.41 per diluted Class A Common share, compared to $109.4 million or $2.00 per share in fiscal 2007. Net income results for fiscal 2007 included cost reduction charges of $8.3 million after tax or $0.15 per share.

"We are very pleased with our results in fiscal 2008, especially in light of the challenging economic environment. Of particular note is Asia’s return to core growth in the fourth quarter with total segment sales up 20 percent and profit up 40 percent following a deliberate re-focus on higher margin products and the success of our cost-control efforts put in place last fiscal year,” said Brady President and CEO Frank M. Jaehnert.

"Cash flow from operations was a solid $73 million in the fourth quarter, up 30 percent from the prior year fourth quarter; and $226 million for the year, up 66 percent from fiscal 2007,” said Brady Chief Financial Officer Thomas J. Felmer. "We see a challenging global economy in front of us this fiscal year and will continue to drive working capital improvements and look for ways to keep our cost structure in line. As a result of the recent material changes in currency markets and current economic conditions, we are revising our guidance for fiscal 2009 from sales of between $1.56 to $1.59 billion, to sales of between $1.52 and $1.55 billion; and from net income of between $145 and $152 million and earnings per diluted share of between $2.63 to $2.75, to net income of between $140 and $145 million and diluted earnings per share between $2.54 and $2.63. In keeping with prior practice, this guidance does not assume any future acquisitions.”

A Webcast regarding fiscal 2008 results will be available at www.investor.bradycorp.com beginning at 9:30 a.m. Central Daylight Time today.

Brady Corporation is an international manufacturer and marketer of complete solutions that identify and protect premises, products and people. Its products include high-performance labels and signs, safety devices, printing systems and software, and precision die-cut materials. Founded in 1914, the company has more than 500,000 customers in electronics, telecommunications, manufacturing, electrical, construction, education, medical and a variety of other industries. Brady is headquartered in Milwaukee and employs more than 7,800 people at operations in the Americas, Europe and Asia/Pacific. More information is available on the Internet at www.bradycorp.com.

Brady believes that certain statements in this news release are "forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements related to future, not past, events included in this news release, including, without limitation, statements regarding Brady's future financial position, business strategy, targets, projected sales, costs, earnings, capital expenditures, debt levels and cash flows, and plans and objectives of management for future operations are forward-looking statements. When used in this news release, words such as "may,” "will,” "expect,” "intend,” "estimate,” "anticipate,” "believe,” "should,” "project” or "plan” or similar terminology are generally intended to identify forward-looking statements. These forward-looking statements by their nature address matters that are, to different degrees, uncertain and are subject to risks, assumptions and other factors, some of which are beyond Brady's control, that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. For Brady, uncertainties arise from future financial performance of major markets Brady serves, which include, without limitation, telecommunications, manufacturing, electrical, construction, laboratory, education, governmental, public utility, computer, transportation; difficulties in making and integrating acquisitions; risks associated with newly acquired businesses; Brady's ability to retain significant contracts and customers; future competition; Brady's ability to develop and successfully market new products; changes in the supply of, or price for, parts and components; increased price pressure from suppliers and customers; interruptions to sources of supply; environmental, health and safety compliance costs and liabilities; Brady's ability to realize cost savings from operating initiatives; Brady's ability to attract and retain key talent; difficulties associated with exports; risks associated with international operations; fluctuations in currency rates versus the US dollar; technology changes; potential write-offs of Brady's substantial intangible assets; risks associated with obtaining governmental approvals and maintaining regulatory compliance for new and existing products; business interruptions due to implementing business systems; and numerous other matters of national, regional and global scale, including those of a political, economic, business, competitive and regulatory nature contained from time to time in Brady's U.S. Securities and Exchange Commission filings, including, but not limited to, those factors listed in the "Risk Factors" section located in Item 1A of Part II of Brady's Annual Report on Form 10-K for the period ended July 31, 2007. These uncertainties may cause Brady's actual future results to be materially different than those expressed in its forward-looking statements. Brady does not undertake to update its forward-looking statements.