Brady Corporation reports sales and earnings for fiscal 2010 first quarter MILWAUKEE (November 19, 2009)--Brady Corporation (NYSE:BRC) today reported sales and earnings for its fiscal 2010 first quarter ended October 31, 2009. Sales for the quarter were $318.5 million compared to $378.3 million in the first quarter of fiscal 2009. Organic sales declined 15.9 percent in the quarter and acquisitions added 0.1 percent to sales. Currency exchange had no impact on sales results in the quarter. By segment, sales were down 15.3 percent in the Americas, 12.8 percent in Europe and 19.5 percent in Asia/Pacific. Net income in the fiscal 2010 first quarter, including $2.6 million in after-tax restructuring charges, was $21.7 million compared to $37.1 million in the same quarter last year. Earnings per diluted Class A Common share were $0.41 in the first quarter of fiscal 2010, compared to $0.69 per diluted share in the prior year’s quarter. Excluding restructuring charges, earnings per share were $0.46 in the current quarter compared to $0.71 in the first quarter of fiscal 2009. “I’m encouraged to see sales improve by 11 percent from our last fiscal quarter, driven by a stabilization in our markets, as well as new-product and market-based initiatives. Compared to last year’s first quarter, our gross margins have improved by 160 basis points as a direct result of our ongoing cost-reduction efforts,” said Frank M. Jaehnert, Brady’s president and chief executive officer. “Our continued investments in new product development resulted in a number of successful launches of new proprietary products in the first quarter, including the BMP™21 Portable Printer for wire identification and general labeling, which has already been well-received by our markets.” “Our balance sheet remains strong and our cash position improved from $188 million to $208 million in the quarter. This will allow us to take advantage of opportunities for future investments, such as new product development, core growth opportunities and acquisitions,” said Brady Chief Financial Officer Thomas J. Felmer. “While we are encouraged by our results, we remain cautious on our outlook because of limited visibility. We are maintaining our original net income and earnings per diluted share guidance for the current fiscal year of $85 to $95 million and $1.60 to $1.80 per share, excluding pretax restructuring charges of $15 million and $0.20 per share.” A Web cast regarding fiscal 2010 first quarter results will be available at www.investor.bradycorp.com beginning at 7:00 a.m. Central time. Brady Corporation is an international manufacturer and marketer of complete solutions that identify and protect premises, products and people. Its products help customers increase safety, security, productivity and performance and 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 approximately 7,000 people at operations in the Americas, Europe and Asia/Pacific. Brady’s fiscal 2009 sales were approximately $1.2 billion. Brady stock trades on the New York Stock Exchange under the symbol BRC. 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 the length or severity of the current worldwide economic downturn or timing or strength of a subsequent recovery; 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 develop and successfully market new products; changes in the supply of, or price for, parts and components; increased price pressure from suppliers and customers; fluctuations in currency rates versus the US dollar; unforeseen tax consequences; potential write-offs of Brady’s substantial intangible assets; Brady’s ability to retain significant contracts and customers; risks associated with international operations; Brady’s ability to attract and retain key talent; Brady’s ability to maintain compliance with its debt covenants; technology changes; business interruptions due to implementing business systems; environmental, health and safety compliance costs and liabilities; future competition; interruptions to sources of supply; Brady’s ability to realize cost savings from operating initiatives; difficulties associated with exports; risks associated with restructuring plans; risks associated with obtaining governmental approvals and maintaining regulatory compliance for new and existing products; 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 I of Brady’s Form 10-K for the year ended July 31, 2009. 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.