MILWAUKEE (AP) -- ID and security products maker Brady Corp. said Thursday its fiscal third-quarter net income plunged 85 percent, pulled down by hefty loss from discontinued operations and sending its shares tumbling before the morning's opening bell.
For the quarter ended April 30, the company earned $4.2 million, or 8 cents per Class A nonvoting share, down from $27.7 million, or 52 cents per share, in the 2012 quarter.
Excluding one-time charges and discontinued operations, the company posted an adjusted profit of 55 cents per Class A nonvoting share, for the recent quarter.
Revenue rose 11 percent to $305.7 million from $275.4 million.
The results fell short of Wall Street predictions. Analysts, on average, expected a profit of 59 cents per Class A nonvoting share on $368.4 million in revenue, according to FactSet.
Brady said that amid continued tough economic conditions it continues to focus on its businesses with the most potential for growth and cut costs. The company announced plans to sell its die-cut business and said it has already sold off another three businesses, while acquiring one.
Those changes, along with others, are expected to result in between $25 million and $30 million in annual pre-tax savings, the company said.
Brady shares fell $2.58, or 7.3 percent, to $33 in premarket trading. The stock closed Wednesday at $35.58, up about 6.5 percent since the start of the year.
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