Brady Corporation reports fiscal 2010 second quarter results MILWAUKEE (February 19, 2010)--Brady Corporation (NYSE: BRC), a world leader in identification solutions, reports sales and earnings for its fiscal 2010 second quarter ended January 31, 2010. Sales for the quarter were up 11.0 percent to $295.8 million compared to $266.4 million in the second quarter of fiscal 2009. Organic sales were up 2.9 percent, acquisitions contributed 0.9 percent to sales, and the impact of foreign currency translation improved sales by 7.2 percent. By segment, organic sales declined 4.3 percent in the Americas, 1.6 percent in Europe and were up 25.7 percent in the Asia-Pacific region. Net income for the quarter was $15.0 million compared to a net loss of $4.2 million in the fiscal 2009 second quarter. Excluding restructuring charges, net income in the quarter was up 79.4 percent from $9.8 million in the fiscal 2009 second quarter to $17.6 million this quarter. Earnings per diluted Class A Common share were $0.28 in the quarter compared to a net loss of $0.08 per share in the fiscal 2009 second quarter. 2010 results include after-tax restructuring charges of $2.6 million or $0.05 per diluted share; 2009 results include after-tax restructuring charges of $14.0 million or $0.27 per diluted share. Sales for the six months ended January 31, 2010 were $614.3 million compared to $644.8 million in the same period last year. Net income for the first six months of fiscal 2010 was $36.7 million compared to $33.0 million in the same period in fiscal 2009. For the six-month period, earnings per diluted Class A Common share were $0.69 compared to $0.62 in the prior year. Results include after-tax restructuring charges of $5.2 million or $0.10 per diluted share for the six-month period ended January 31, 2010 and $15.2 million or $0.29 per diluted share for the six month period ended January 31, 2009. Excluding the after-tax impact of restructuring charges, six-month earnings per diluted share were $0.79, compared to $0.91 in the first-half of fiscal 2009. “I’m encouraged to see our quarterly organic sales improve on a year-over-year basis, fueled by growth in our Asia-Pacific business. I’m also pleased with the continued improvement in our gross margin. However, we remain cautious about the stability of the global economy and we continue our vigilance on cost controls while continuing to strategically invest in our future,” said Frank M. Jaehnert, Brady’s President and Chief Executive Officer. “Our cash position remains strong at $206 million, and our balance sheet continues to provide us flexibility to take advantage of opportunities for future investments, including new product development, other core growth initiatives and acquisitions,” said Brady Chief Financial Officer, Thomas J. Felmer. “We are reiterating our guidance range for net income of $85 to $95 million and earnings per diluted share of $1.60 to $1.80, excluding pretax restructuring charges of $15 million and $0.20 per diluted share.” A webcast regarding fiscal 2010 second quarter results will be available at www.investor.bradycorp.com beginning at 9:30 a.m. Central Standard Time today. 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 about 7,000 people at operations in the Americas, Europe and Asia/Pacific. Brady’s fiscal 2009 sales were approximately $1.2 billion. 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.