MILWAUKEE (AP) -- Brady Corp., which makes labels, signs and safety devices, said Thursday it plans to cut its global work force by about 10 percent due to difficult economic conditions.
Brady said it plans to lay off the workers in the fiscal second quarter ending in January and take additional steps to reduce costs. The company employed 7,800 people as of July 31, according to a regulatory filing.
Frank M. Jaehnert, Brady's president and chief executive, said the company expects "a continuation of the challenging global economy."
In addition to the job cuts, Brady will implement a companywide salary freeze, further reduction of discretionary spending and contingency plans for more cuts in the event of "more severe business contraction," he said in a statement.
The company expects restructuring charges of about $30 million before taxes in fiscal 2009. It forecast "high single-digit declines" in sales for the remainder of the fiscal year, according to Brady's chief financial officer, Thomas J. Felmer.
Also Thursday, Brady posted a 2 percent gain in fiscal first-quarter earnings as cost-savings measures and a lower tax rate lifted results despite weaker sales.
The company also cut its fiscal 2009 financial guidance.
Shares of Brady fell $1.45, or 7 percent, to $19.12 in pre-market trading.
