Brady issues fiscal 2009 earnings, sales guidance

Brady Corp., which makes labels, signs and safety devices, on Tuesday issued fiscal 2009 guidance with the lower end below Wall Street estimates.

For the fiscal year beginning Aug. 1, the company expects earnings of $145 million to $152 million, or $2.63 to $2.75 per share. Sales are expected to reach $1.56 billion to $1.59 billion.

Analysts polled by Thomson Financial, on average, forecast earnings of $2.68 per share on sales of $1.58 billion.

"While we continue to believe that a target of 12 percent net income as a percentage of sales is still possible in our business, we do not believe it is realistic to think that the current economic climate will support sufficient core business growth needed to reach this by 2010 as discussed in prior communications," said President and Chief Executive Frank M. Jaehnert in a statement.

"We will now be focused on delivering 10 to 15 percent earnings-per-share growth through the current business cycle."