Despite sales growth in Workplace Safety, Brady Corporation showed a slight decline in revenue and income during its fiscal 2021 second quarter ended Jan. 31, 2021.
Sales for the six-month period ended Jan. 31, 2021 declined 3.6% to $543.1 million, an organic sales decline of 5.6%. By segment, sales declined 6.6% in Identification Solutions and increased 5.2% in Workplace Safety.
Net income for the six-month period ended January 31, 2021, declined 9.4% to $64.3 million compared to $71.1 million for the same period last year.
Sales for the quarter ended Jan. 31, 2021, declined 3.9% to $265.8 million, an organic sales decline of 6.3%. By segment, sales declined 5.4% in Identification Solutions and increased 0.4% in Workplace Safety.
Net income for the quarter ended Jan. 31, 2021, declined 8% to $30.9 million compared to $33.6 million in the same quarter last year.
“Our operations are running globally as we continue to do our part to supply products to first responders, healthcare providers, transportation, food processing and many other critical industries,” said J. Michael Nauman, Brady’s president and CEO. “Our outlook has improved and to supplement organic sales growth, we are investing in sales, marketing and new product development that will help accelerate growth in the back half of this fiscal year and into the future. We are also actively investigating acquisitions that complement our strategic growth initiatives.”
“Brady continues to generate strong cash flow and has a very strong balance sheet. As of Jan. 31, 2021, we had $277.6 million of cash on hand and no outstanding debt,” added Brady CFO Aaron Pearce. “We generated $36.1 million of cash flow from operating activities this quarter, which was an increase of 153% compared to last year’s second quarter. Although the economy is still challenged, we do expect the general trend of improving economic conditions to continue over the next several quarters.”