FORM 8-K

BRADY CORPORATION

Date: May 16, 2012

/s/ Thomas J. Felmer

Thomas J. Felmer

Senior Vice President & Chief Financial Officer

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K\n

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of\n1934

Date of Report (Date of earliest event reported): May 16, 2012

BRADY CORPORATION

(Exact name of registrant as specified in its charter)

Commission\nFile Number 1-14959

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Wisconsin		39-0971239
(State of Incorporation)		(IRS Employer Identification No.)

6555 West Good Hope Road

Milwaukee, Wisconsin 53223

(Address of Principal Executive Offices and\nZip Code)

(414) 358-6600

(Registrant’s Telephone Number)

Check the appropriate box below\nif the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

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¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

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¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

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¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

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¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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Item 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On May 16, 2012, Brady Corporation (the “Corporation”) issued a press release announcing its fiscal 2012 third quarter\nfinancial results. A copy of the press release is being furnished to the Securities and Exchange Commission as Exhibit 99.1 attached hereto and is incorporated herein by reference.

Item 7.01 REGULATION FD DISCLOSURE

On May 16, 2012, the Corporation\nhosted a conference call related to its fiscal 2012 third quarter financial results. A copy of the slides referenced in the conference call, which is also posted on the Corporation’s website, is being furnished to the Securities and Exchange\nCommission as Exhibit 99.2 attached hereto and is incorporated herein by reference.

Item 9.01 FINANCIAL STATEMENTS AND EXHIBITS\n

(d) Exhibits

The following are\nfiled as Exhibits to this Report.

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Exhibit No.		Description of Exhibit
99.1		Press Release of Brady Corporation, dated May 16, 2012, relating to third quarter fiscal 2012 financial results.

99.2		Informational slides provided by Brady Corporation, dated May 16, 2012, relating to third quarter fiscal 2012 financial results.

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

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EXHIBIT INDEX

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EXHIBIT
NUMBER		DESCRIPTION
99.1		Press Release of Brady Corporation, dated May 16, 2012, relating to third quarter fiscal 2012 financial\nresults.

99.2		Informational slides provided by Brady Corporation, dated May 16, 2012, relating to third\nquarter fiscal 2012 financial results.

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\nEX-99.1\n\n \n\n

EXHIBIT 99.1

For More Information:

Investor contact: Aaron Pearce 414-438-6895

Media contact: Carole Herbstreit 414-438-6882

For Immediate Release

Brady Corporation Reports Fiscal 2012 Third Quarter Results

MILWAUKEE (May 16, 2012)—Brady Corporation (NYSE: BRC) (“Brady”), a world leader in identification solutions, today reported its financial results for the fiscal 2012 third quarter ended\nApril 30, 2012.

Quarter Ended April 30, 2012 Results:

Sales for the fiscal 2012 third quarter were down 1.9 percent to $331.6 million compared to $337.9 million in the third quarter of fiscal\n2011. Organic sales were down 0.5 percent, acquisitions added 0.2 percent, and the impact of foreign currency translation decreased sales by 1.6 percent. By segment, organic sales increased 1.9 percent in the Americas, decreased 1.2 percent in the\nAsia-Pacific region, and decreased 3.3 percent in EMEA.

Net income in the fiscal 2012 third quarter was $27.7 million\ncompared to $28.6 million in the same quarter last year. Excluding $2.7 million of after-tax restructuring charges in the third quarter of fiscal 2012 and $0.9 million of after-tax restructuring charges in the same quarter last year, net income was\nup 3.0 percent to $30.3 million compared to $29.5 million in the same quarter last year.

Earnings per diluted Class A\nCommon Share were down 3.7 percent to $0.52 in the third quarter of fiscal 2012 compared to $0.54 in the same quarter last year. Excluding after-tax restructuring charges, earnings per diluted Class A Common Share increased 3.6 percent to $0.57\nin the third quarter of fiscal 2012, compared to $0.55 per share in the same quarter of fiscal 2011.

Nine Months Ended April 30, 2012\nResults:

Sales for the nine-month period ended April 30, 2012 were up 0.5 percent to $1.002 billion compared to\n$0.996 billion in the same period last year. Organic sales growth was 0.4 percent; divestitures, net of acquisitions reduced sales by 0.2 percent; and the impact of foreign currency translation increased sales by 0.3 percent. By segment, organic\nsales increased 3.5 percent in the Americas, decreased 2.0 percent in EMEA, and decreased 1.9 percent in the Asia-Pacific region.

Net income (loss) for the nine months ended April 30, 2012 was $(29.6) million compared to $79.1 million in the same period in fiscal 2011. Excluding the impact of the $115.7 million non-cash\ngoodwill impairment charge incurred in the second quarter of fiscal 2012 and $2.7 million of after-tax restructuring charges during the nine-month period ended April 30, 2012 and $5.0 million of after-tax restructuring charges in the same\nperiod last year, net income was up 5.6 percent to $88.8 million compared to $84.1 million in the same period last year.

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Earnings (loss) per diluted Class A Common Share were $(0.57) for the nine-month period\nended April 30, 2012 compared to $1.49 in the same period of fiscal 2011. Excluding the impact of the non-cash goodwill impairment charge and the after-tax restructuring charges, earnings per diluted Class A Common Share increased 7.0\npercent to $1.69 for the nine-month period ended April 30, 2012 compared to $1.58 in the same period of fiscal 2011.

Commentary and\nGuidance:

“Our Americas region is performing well, fueled by strength in our U.S. business. In EMEA, our growth\ninitiatives and reallocation of resources to the stronger sub-regions are partially counter balancing the weak macro-economy, enabling our EMEA revenues to be down only slightly when compared with the prior year. During the quarter, our revenues\nwere below our internal expectation, but profitability was maintained through reductions in selling, general, and administrative expenses, including reduced incentive compensation,” said Brady’s President and Chief Executive Officer, Frank\nM. Jaehnert. “After quarter-end, we completed two acquisitions for a purchase price of approximately $36 million. These two acquisitions, Pervaco AS in Norway and Runelandhs Försäljnings AB in Sweden expand our presence in the\nScandanavian region, which is an under-penetrated market for Brady. We also announced the acquisition of Grafo Wiremarkers Africa (Pty) Ltd in South Africa during the third quarter, which is our first acquisition on the African continent.”\n

“Our balance sheet is strong with $374.4 million of cash and $342.1 million of debt as of April 30, 2012 and our\nacquisition pipeline is robust,” said Brady’s Chief Financial Officer, Thomas J. Felmer. “In Asia, we are working to improve the profitability of the business as the changes that we announced last quarter related to the separation of\nour die-cut business and our MRO and identification businesses into two distinct and separate operations are starting to take hold. Our new management team is in place in Asia and driving hard to deliver results. Because of the ongoing weaknesses in\nour Asian die-cut business and the weak macro-environment in Europe, we are modifying our full year fiscal 2012 guidance range for earnings per diluted Class A Common Share, exclusive of after-tax restructuring charges and the Asia goodwill\nimpairment to between $2.15 and $2.25; down from our previous guidance range of $2.20 to $2.40 per diluted Class A Common Share.”

A webcast regarding Brady’s fiscal 2012 third quarter financial results will be available at www.bradycorp.com beginning at 9:30 a.m. Central Time today.\n

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Brady Corporation is an international manufacturer and marketer of complete solutions that\nidentify and protect premises, products and people. Brady’s products help customers increase safety, security, productivity and performance and include high-performance labels and signs, safety devices, printing systems and software, and\nprecision die-cut materials. Founded in 1914, the company has millions of customers in electronics, telecommunications, manufacturing, electrical, construction, education, medical and a variety of other industries. Brady is headquartered in\nMilwaukee, Wisconsin and as of July 31, 2011 employed approximately 6,500 people at operations in the Americas, EMEA and Asia-Pacific. Brady’s fiscal 2011 sales were approximately $1.34 billion. Brady stock trades on the New York Stock\nExchange under the symbol BRC. More information is available on the Internet at www.bradycorp.com.

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Brady believes that certain statements in this news release are “forward-looking statements” within the meaning of the Private Securities\nLitigation 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,\ncosts, 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,”\n“expect,” “intend,” “estimate,” “anticipate,” “believe,” “should,” “project” or “plan” or similar terminology are generally intended to identify forward-looking\nstatements. 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\nresults 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;\nfuture financial performance of major markets Brady serves, which include, without limitation, telecommunications, manufacturing, electrical, construction, laboratory, education, governmental, public utility, computer, transportation; difficulties\nin 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\nfrom 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;\nrisks associated with international operations; 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\nand 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\nobtaining governmental approvals and maintaining regulatory compliance; 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\ntime 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\nJuly 31, 2011. 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.\n

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\nBRADY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME\n

(Dollars in Thousands, Except Per Share Amounts)

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	(Unaudited)
	Three Months Ended April 30,			Nine Months Ended April 30,
	2012			2011			Percentage Change	2012		2011			Percentage Change
Net sales	$	331,629			$	337,896		-1.9	%	$	1,001,721			$	996,493		0.5	%
Cost of products sold		171,582				170,258		0.8	%		520,538				505,333		3.0	%

Gross margin		160,047				167,638		-4.5	%		481,183				491,160		-2.0	%

Operating expenses:
Research and development		8,940				10,550		-15.3	%		28,721				32,226		-10.9	%
Selling, general and administrative		106,714				115,006		-7.2	%		320,489				332,394		-3.6	%
Restructuring charges		3,440				1,211		184.1	%		3,440				6,986		-50.8	%
Impairment charge		—				—		N/A			115,688				—		N/A

Total operating expenses		119,094				126,767		-6.1	%		468,338				371,606		26.0	%

Operating income		40,953				40,871		0.2	%		12,845				119,554		-89.3	%

Other income and (expense):
Investment and other income		1,110				1,428		-22.3	%		1,720				2,892		-40.5	%
Interest expense		(4,735	)			(5,103	)	-7.2	%		(14,715	)			(16,640	)	-11.6	%

Income (loss) before income taxes		37,328				37,196		0.4	%		(150	)			105,806		-100.1	%

Income taxes		9,676				8,607		12.4	%		29,420				26,737		10.0	%

Net income (loss)	$	27,652			$	28,589		-3.3	%	$	(29,570	)		$	79,069		-137.4	%

Per Class A Nonvoting Common Share:
Basic net income (loss)	$	0.53			$	0.54		-1.9	%	$	(0.57	)		$	1.50		-138.0	%
Diluted net income (loss)	$	0.52			$	0.54		-3.7	%	$	(0.57	)		$	1.49		-138.3	%
Dividends	$	0.185			$	0.18		2.8	%	$	0.555			$	0.54		2.8	%

Per Class B Voting Common Share:
Basic net income (loss)	$	0.53			$	0.54		-1.9	%	$	(0.58	)		$	1.48		-139.2	%
Diluted net income (loss)	$	0.52			$	0.54		-3.7	%	$	(0.58	)		$	1.47		-139.5	%
Dividends	$	0.185			$	0.18		2.8	%	$	0.538			$	0.523		2.8	%

Weighted average common shares outstanding (in thousands):
Basic		52,513				52,701					52,539				52,581
Diluted		53,003				53,337					52,539				53,067

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\nBRADY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS\n

(Dollars in Thousands)


	(Unaudited)
	April 30, 2012			July 31, 2011
ASSETS

Current assets:
Cash and cash equivalents	$	374,425			$	389,971
Accounts receivable—net		210,694				228,483
Inventories:
Finished products		65,322				62,152
Work-in-process		15,045				14,550
Raw materials and supplies		25,749				27,484

Total inventories		106,116				104,186
Prepaid expenses and other current assets		40,267				35,647

Total current assets		731,502				758,287

Other assets:
Goodwill		666,423				800,343
Other intangible assets		76,260				89,961
Deferred income taxes		48,578				53,755
Other		20,760				19,244

Property, plant and equipment:
Cost:
Land		6,119				6,406
Buildings and improvements		100,569				104,644
Machinery and equipment		303,666				305,557
Construction in progress		12,280				11,226

		422,634				427,833

Less accumulated depreciation		295,017				287,918

Property, plant and equipment—net		127,617				139,915

Total	$	1,671,140			$	1,861,505

LIABILITIES AND STOCKHOLDERS’ INVESTMENT

Current liabilities:
Accounts payable	$	75,303			$	98,847
Wages and amounts withheld from employees		48,954				69,798
Taxes, other than income taxes		10,169				7,612
Accrued income taxes		20,939				9,954
Other current liabilities		41,926				54,406
Current maturities on long-term debt		61,264				61,264

Total current liabilities		258,555				301,881

Long-term obligations, less current maturities		280,812				331,914

Other liabilities		68,191				71,518

Total liabilities		607,558				705,313

Stockholders’ investment:
Common stock:
Class A nonvoting common stock—Issued 51,261,487 and 51,261,487 shares, respectively and outstanding 49,031,625\nand 49,284,252 shares, respectively		513				513
Class B voting common stock—Issued and outstanding, 3,538,628 shares		35				35
Additional paid-in capital		311,369				307,527
Income retained in the business		730,295				789,100
Treasury stock—1,919,862 and 1,667,235 shares, respectively of Class A nonvoting common stock,\nat cost		(55,354	)			(50,017	)
Accumulated other comprehensive income		80,432				113,898
Other		(3,708	)			(4,864	)

Total stockholders’ investment		1,063,582				1,156,192

Total	$	1,671,140			$	1,861,505

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\nBRADY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH\nFLOWS


(Dollars in Thousands)	(Unaudited)
	Nine Months Ended
	April 30,
	2012			2011
Operating activities:
Net (loss) income	$	(29,570	)		$	79,069
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		32,921				37,522
Non-cash portion of restructuring charges		458				2,155
Non-cash portion of stock-based compensation expense		7,592				9,396
Impairment charge		115,688				—
Gain on divestiture of business		—				(4,394	)
Deferred income taxes		(3,192	)			(9,018	)
Changes in operating assets and liabilities
(net of effects of business acquisitions/divestitures):
Accounts receivable		11,050				211
Inventories		(5,595	)			(1,491	)
Prepaid expenses and other assets		(4,386	)			772
Accounts payable and accrued liabilities		(39,472	)			(8,355	)
Income taxes		15,101				4,579

Net cash provided by operating activities		100,595				110,446

Investing activities:
Purchases of property, plant and equipment		(14,498	)			(13,671	)
Payments of contingent consideration		(2,580	)			(979	)
Settlement of net investment hedges		(797	)			—
Acquisition of business, net of cash acquired		(3,039	)			(7,970	)
Divestiture of business, net of cash retained in business		—				12,979
Other		(1,536	)			(379	)

Net cash used in investing activities		(22,450	)			(10,020	)

Financing activities:
Payment of dividends		(29,235	)			(28,500	)
Proceeds from issuance of common stock		3,624				7,154
Purchase of treasury stock		(12,309	)			—
Principal payments on debt		(42,514	)			(42,514	)
Debt issuance costs		(961	)			—
Income tax benefit from the exercise of stock options and deferred compensation distribution, and other		754				1,075

Net cash used in financing activities		(80,641	)			(62,785	)

Effect of exchange rate changes on cash		(13,050	)			21,497

Net (decrease) increase in cash and cash equivalents		(15,546	)			59,138
Cash and cash equivalents, beginning of period		389,971				314,840

Cash and cash equivalents, end of period	$	374,425			$	373,978

Supplemental disclosures:
Cash paid during the period for:
Interest, net of capitalized interest	$	15,746			$	16,349
Income taxes, net of refunds		19,959				26,695
Acquisitions:
Fair value of assets acquired, net of cash	$	2,395			$	4,624
Liabilities assumed		(583	)			(1,446	)
Goodwill		1,227				4,792

Net cash paid for acquisitions	$	3,039			$	7,970

\n\n

\nInformation by regional segment for the three and nine months ended April 30, 2012 and 2011 is as follows:


(in thousands)	Americas			EMEA			Asia- Pacific		Total Region		Corporate and Eliminations			Total
SALES TO EXTERNAL CUSTOMERS
Three months ended:
April 30, 2012	$	150,629			$	97,938		$	83,062		$	331,629				—		$	331,629
April 30, 2011	$	149,217			$	105,894		$	82,785		$	337,896				—		$	337,896

Nine months ended:
April 30, 2012	$	442,896			$	290,887		$	267,938		$	1,001,721				—		$	1,001,721
April 30, 2011	$	431,216			$	301,985		$	263,292		$	996,493				—		$	996,493

SALES INFORMATION
Three months ended April 30, 2012:
Base		1.9	%			-3.3	%		-1.2	%		-0.5	%			—			-0.5	%
Currency		-0.9	%			-4.7	%		1.5	%		-1.6	%			—			-1.6	%
Acquisitions/Divestitures		0.0	%			0.5	%		0.0	%		0.2	%			—			0.2	%

Total		1.0	%			-7.5	%		0.3	%		-1.9	%			—			-1.9	%

Nine months ended April 30, 2012:
Base		3.5	%			-2.0	%		-1.9	%		0.4	%			—			0.4	%
Currency		-0.5	%			-1.1	%		3.0	%		0.3	%			—			0.3	%
Acquisitions/Divestitures		-0.3	%			-0.6	%		0.7	%		-0.2	%			—			-0.2	%

Total		2.7	%			-3.7	%		1.8	%		0.5	%			—			0.5	%

SEGMENT PROFIT
Three months ended:
April 30, 2012	$	38,887			$	25,571		$	6,598		$	71,056			$	(388	)	$	70,668
April 30, 2011	$	38,292			$	28,938		$	9,976		$	77,206			$	(3,561	)	$	73,645
Percentage change		1.6	%			-11.6	%		-33.9	%		-8.0	%						-4.0	%

Nine months ended:
April 30, 2012	$	117,914			$	78,432		$	27,635		$	223,981			$	(6,009	)	$	217,972
April 30, 2011	$	108,666			$	82,165		$	38,330		$	229,161			$	(12,087	)	$	217,074
Percentage change		8.5	%			-4.5	%		-27.9	%		-2.3	%						0.4	%

NET INCOME RECONCILIATION (in thousands)


	Three months ended:			Nine months ended:
	April 30, 2012			April 30, 2011			April 30, 2012		April 30, 2011
Total profit for reportable segments	$	71,056			$	77,206		$	223,981		$	229,161
Corporate and eliminations		(388	)			(3,561	)		(6,009	)		(12,087	)
Unallocated amounts:
Administrative costs		(26,275	)			(31,563	)		(85,999	)		(90,534	)
Restructuring charges		(3,440	)			(1,211	)		(3,440	)		(6,986	)
Impairment charge		—				—			(115,688	)		—
Investment and other income		1,110				1,428			1,720			2,892
Interest expense		(4,735	)			(5,103	)		(14,715	)		(16,640	)

Income (loss) before income taxes		37,328				37,196			(150	)		105,806
Income taxes		(9,676	)			(8,607	)		(29,420	)		(26,737	)

Net income (loss)	$	27,652			$	28,589		$	(29,570	)	$	79,069

\n\n

\nNON-GAAP MEASURES

(in thousands)

In accordance with the U.S. Securities and Exchange Commission’s Regulation G, the following provides definitions of the non-GAAP measures used in\nthe earnings release and the reconciliation to the most closely related GAAP measure.

EBITDA:

Brady is presenting EBITDA because it is used by many of our investors and lenders, and is presented as a convenience to them. EBITDA represents net\nincome before interest expense, income taxes, depreciation and amortization and non-cash impairment charges. EBITDA is not a calculation based on generally accepted accounting principles (\"GAAP\"). The amounts included in the EBITDA calculation,\nhowever, are derived from amounts included in the Condensed Consolidated Statements of Income data. EBITDA should not be considered as an alternative to net income or operating income as an indicator of the Company's operating performance, or as an\nalternative to operating cash flows as a measure of liquidity. The EBITDA measure presented may not always be comparable to similarly titled measures reported by other companies due to differences in the components of the calculation.


	Fiscal 2012
	Q1		Q2			Q3		Q4	Total
EBITDA:
Net income (loss)	$	32,732		$	(89,954	)	$	27,652			$	(29,570	)
Interest expense		5,047			4,933			4,735				14,715
Income taxes		11,109			8,635			9,676				29,420
Depreciation and amortization		11,241			10,935			10,745				32,921
Impairment charge		—			115,688			—				115,688

EBITDA (non-GAAP measure)	$	60,129		$	50,237		$	52,808	$	—	$	163,174


	Fiscal 2011
	Q1		Q2			Q3		Q4	Total
EBITDA:
Net income	$	26,281		$	24,199		$	28,589	$	29,583	$	108,652
Interest expense		5,687			5,850			5,103		5,484		22,124
Income taxes		9,925			8,205			8,607		8,669		35,406
Depreciation and amortization		12,594			12,908			12,020		11,305		48,827

EBITDA (non-GAAP measure)	$	54,487		$	51,162		$	54,319	$	55,041	$	215,009

\n\n

Diluted Earnings Per Share Excluding Impairment and Restructuring Charges:

This is a measure of the Company’s diluted net earnings per share excluding the current year Asia non-cash goodwill impairment charge and prior year\nrestructuring charges. We do not view these items to be part of our sustainable results. We believe this earnings per share measure provides an important perspective of underlying business trends and results and provides a more comparable measure of\nyear-on-year earnings per share growth. The table below provides a reconciliation of diluted net earnings per share to diluted earnings per share excluding the impairment charge and restructuring charges:


	Three Months Ended April 30,		Nine Months Ended April 30,
	2012		2011			2012		2011
Diluted Earnings (Loss) per Share	$	0.52		$	0.54		$	(0.57	)	$	1.49
Non-Cash Goodwill Impairment		—			—			2.21			—
Restructuring Charges		0.05			0.01			0.05			0.09
Diluted Earnings per Share Excluding

Impairment and Restructuring Charges	$	0.57		$	0.55		$	1.69		$	1.58

Net Income Excluding Impairment and Restructuring Charges:

This is a measure of the Company’s net income excluding the current year Asia non-cash goodwill impairment charge and prior year restructuring\ncharges. We do not view these items to be part of our sustainable results. We believe this net income measure provides an important perspective of underlying business trends and results and provides a more comparable measure of year-on-year net\nincome growth. The table below provides a reconciliation of net income to net income excluding the impairment charge and restructuring charges:


	Three Months Ended April 30,		Nine Months Ended April 30,
	2012		2011			2012		2011
Net Income (Loss)	$	27,652		$	28,589		$	(29,570	)	$	79,069
Non-Cash Goodwill Impairment		—			—			115,688			—
Restructuring Charges		2,683			872			2,683			4,994
Net Income Excluding

Impairment and Restructuring Charges	$	30,335		$	29,461		$	88,801		$	84,063

All reconciling items are presented net of tax. Tax effects are calculated consistent with the nature of the underlying\ntransaction.

\n\n

\nEX-99.2\n\n \n

Exhibit 99.2

\n \n

\n\n\n

F'12 - Q3 Financial Results May 16, 2012 May 16, 2012 BRADY - FISCAL 2012 Q3 FINANCIAL RESULTS

\n\n \n

\n\n\n

FORWARD-LOOKING STATEMENTS BRADY - FISCAL 2012 Q3 FINANCIAL RESULTS 2 Brady believes that certain statements in this presentation are \"forward-looking statements\" within the\nmeaning of the Private Securities Litigation Reform Act of 1995. All statements related to future, not past, events included in this presentation, including, without limitation, statements regarding Brady's future financial position, business\nstrategy, 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 presentation, words such as \"may,\"\n\"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\nthat 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\nstatements. 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\nlimitation, telecommunications, manufacturing, electrical, construction, laboratory, education, governmental, public utility, computer, transportation; difficulties in making and integrating acquisitions; risks associated with newly acquired\nbusinesses; 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;\nunforeseen 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 maintain compliance with\nits 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\nrealize cost savings from operating initiatives; difficulties associated with exports; risks associated with restructuring plans; risks associated with obtaining governmental approvals and maintaining regulatory compliance; and numerous other\nmatters 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\nto, 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, 2011. These uncertainties may cause Brady's actual future results to be materially different than those expressed in\nits forward-looking statements. Brady does not undertake to update its forward-looking statements except as required by law. We refer to certain non-GAAP financial measures in this presentation. Reconciliations of these non-GAAP financial measures\nto the most directly comparable GAAP financial measures can be found within this presentation.

\n\n \n

\n\n\n

Q3 F'12 FINANCIAL SUMMARY Net income down 3.3% to $27.7M vs. $28.6M in Q3 of F'11. Net Income, excluding restructuring charges up 3.0% to $30.3M vs. $29.5M in Q3 of F'11.\nDiluted EPS down 3.7% to $0.52 in Q3 of F'12 vs. $0.54 in Q3 of F'11. Diluted EPS, excluding restructuring charges up 3.6% to $0.57 vs. $0.55 in Q3 of F'11. Sales down 1.9% to $331.6M vs. $337.9M in Q3 of F'11 (Organic sales down 0.5%). Gross Profit\nMargin of 48.3% vs. 49.6% in Q3 of F'11. Decline due primarily to weaknesses in the Asia-Pacific region. SG&A expense down 180 bps to 32.2% of sales vs. 34.0% in Q3 of F'11. Reduced incentive compensation compared to Q3 of F'11 increased net\nincome by $5.9M. Balance Sheet: April 30, 2012 cash balance of $374M and debt balance of $342M. Full year F'12 Guidance adjusted to: EPS, Excluding Impairment and Restructuring Charges of $2.15 to $2.25 per diluted share. BRADY - FISCAL 2012 Q3\nFINANCIAL RESULTS 3

\n\n \n

\n\n\n

F'12 GUIDANCE BRADY - FISCAL 2012 Q3 FINANCIAL RESULTS 4 Diluted EPS $2.15 - $2.25 (Excluding after-tax impairment and restructuring-related charges) Guidance Assumptions:\nFull-year income tax rate in the mid-20% range.* Guidance based on current foreign currency exchange rates. Full-year capital expenditures of less than $25 million. Full-year depreciation and amortization expense of approximately $40 - $45 million.\nFree cash flow of 100 - 120% of net income.* In accordance with our normal practice, our guidance does not assume any acquisitions or dispositions. Brady Corporation's practice is to only change or reconfirm guidance in a public forum. * Excludes\n$115.7M of non-cash impairment charges in Q2 of F'12.

\n\n \n

\n\n\n

SALES OVERVIEW Organic 2% 10% 1% (0.6%) 3.5% (1.8%) (0.5%) BRADY - FISCAL 2012 Q3 FINANCIAL RESULTS 5 Q3 F'12 Sales Down 1.9%. (0.5%) Organic Sales Decline. 0.2% Growth from\nAcquisitions. (1.6%) Decline due to Currency Translation. Americas - Driven by strong U.S. sales. EMEA - Internal initiatives combating weak macro-economy. Asia - Die-cut sales are depressing sales in the region. TOTAL COMPANY SALES - Q3 F'12: Q3\nF'12 SALES DRIVERS: SALES (Millions of USD)

\n\n \n

\n\n\n

GROSS PROFIT MARGIN AND SG&A BRADY - FISCAL 2012 Q3 FINANCIAL RESULTS 6 GROSS PROFIT & GPM% (Millions of USD) SG&A & SG&A as % of SALES (Millions of\nUSD) GPM down 130 bps to 48.3% in Q3 of F'12 versus 49.6% in Q3 of F'11. Asia GPM weakness driving the reduced GPM. GROSS PROFIT MARGIN DRIVERS: Excluding reductions in variable incentive compensation, SG&A expense would have been approximately\n$112.7M in Q3 of F'12 (34.0% of sales). SG&A expense in Q3 was influenced by increased advertising in direct marketing. SG&A EXPENSE DRIVERS:

\n\n \n

\n\n\n

NET INCOME* AND DILUTED EPS* Q3 Net Income down 3.3% compared to Q3 F'11. Q3 F'12 net income, excluding restructuring charges up 3.0% to $30.3M. Q3 F'12 diluted EPS,\nexcluding restructuring charges was up 3.6% to $0.57 compared to $0.55 last year. Q3 F'12 significant items: Chinese New Year Falling in Q2 of F'12 (+$0.01). Reduced variable compensation increasing net income by $5.9 million. Thailand returning to\nnormal following the flooding. BRADY - FISCAL 2012 Q3 FINANCIAL RESULTS 7 NET INCOME* (Millions of USD) DILUTED EPS (Class A Shares)* Q3 F'12 NET INCOME & DILUTED EPS: NET INCOME & DILUTED EPS DRIVERS: * Excludes $115.7M of non-cash\nimpairment charges in Q2 of F'12.

\n\n \n

\n\n\n

CASH GENERATION BRADY - FISCAL 2012 Q3 FINANCIAL RESULTS 8 Cash Flow from Operating Activities = 208% of net income in Q3 of F'12. Repaid $42.5M of long-term debt in Q3.\nSpent $3.0M on acquisitions in Q3 and an additional $36.0M on May 2, 2012. Cash Position of $374.4 million at April 30, 2012. CASH BALANCE WALK (Millions of USD) CASH GENERATION - F'12 Q3:

\n\n \n

\n\n\n

DECREASING DEBT & INCREASING EBITDA BRADY - FISCAL 2012 Q3 FINANCIAL RESULTS NET DEBT / EBITDA* April 30, 2012 Debt = $342M April 30, 2012 Cash = $374M STRONG BALANCE\nSHEET: 9 DEBT & TTM EBITDA* (Millions of USD) * Excludes $115.7M of non-cash impairment charges in Q2 of F'12.

\n\n \n

\n\n\n

Q3 F'12 - NEW PRODUCT LAUNCHES High Resolution Printing System: BBP-16TM Printing System - Thermal transfer printer for the Asia product identification market with best in\nclass features for ease of use and productivity, including the ability to print very small size labels. Aerospace, Defense and Mass Transit Labels: B-472 Fire Resistant Labels - New range of polyimide- based wire and cable labels designed to\nself-extinguish and prevent flames from propagating. Ideal for the commercial aerospace and mass transit industries. Meets Federal Aviation Regulations: FAR 25.853 and FAR 25.855 and MIL- STD-202G, Method 215K . Electrical Grounding Pad Solution:\nBrady Grounding Pad - Grounding pad for use in mobile and other small electronic devices to provide circuit board electrical grounding. Unique design combines excellent conductivity, mechanical compliance and durability. BRADY - FISCAL 2012 Q3\nFINANCIAL RESULTS 10

\n\n \n

\n\n\n

AMERICAS - Q3 F'12 SUMMARY Q3 F'11 Q3 F'12 Change Sales $ 149.2 $ 150.6 + 1.0% Segment Profit 38.3 38.9 + 1.6% Segment Profit % 25.7% 25.8% + 0.1 pts BRADY - FISCAL 2012 Q3\nFINANCIAL RESULTS 11 SALES & SEGMENT PROFIT % (Millions of USD) Q3 F'12 vs. Q3 F'11 PERFORMANCE Revenues up 1.0%: Organic Growth = 1.9% Fx = (0.9%) Strong results in Brady's U.S. business. Direct marketing businesses improving and managing\nshift to internet. Brady U.S. won Supplier of the Year award from Standard Electric Supply, continuing the string of awards driven by our focus on the customer. Slower but improving growth in Canada, Mexico and Brazil. Segment profit up 1.6%. Price\nincreases and operations cost savings offsetting inflation. Q3 F'12 SUMMARY: Continued low single-digit organic growth. New products and sales initiatives driving consistent demand in most businesses. OUTLOOK:

\n\n \n

\n\n\n

EMEA - Q3 F'12 SUMMARY Q3 F'11 Q3 F'12 Change Sales $105.9 $ 97.9 - 7.5% Segment Profit 28.9 25.6 - 11.6% Segment Profit % 27.3% 26.1% - 1.2 pts BRADY - FISCAL 2012 Q3\nFINANCIAL RESULTS 12 SALES & SEGMENT PROFIT % (Millions of USD) Q3 F'12 vs. Q3 F'11 PERFORMANCE Revenues down 7.5%: Organic Sales Decline = (3.3%) Fx = (4.7%) Acquisitions = 0.5% Segment profit down (11.6%). Internal growth initiatives\npartially offsetting the negative impacts from the challenging macro-economic climate. Completed 3 acquisitions, expanding presence in the Nordic region and entering South Africa. Q3 F'12 SUMMARY: Approximately flat to slightly down organic sales\nfor Q4 of F'12. Selected European economies in recession. OUTLOOK:

\n\n \n

\n\n\n

ASIA-PACIFIC - Q3 F'12 SUMMARY Q3 F'11 Q3 F'12 Change Sales $ 82.8 $ 83.1 + 0.3% Segment Profit 10.0 6.6 - 33.9% Segment Profit % 12.1% 7.9% - 4.2 pts BRADY - FISCAL 2012 Q3\nFINANCIAL RESULTS 13 SALES & SEGMENT PROFIT % (Millions of USD) Q3 F'12 vs. Q3 F'11 PERFORMANCE Revenues up 0.3%: Organic Sales Decline = (1.2%) Fx = 1.5% Segment profit down $3.4 million. Q3 F'12 positively influenced by the timing of Chinese\nNew Year. Price competition in the mobile handset industry causing margin compression. Q3 F'12 SUMMARY: Challenging quarter in Q4 before improvement plans impact in F13. Regional economies generally stable, but competition in the die-cut business\nremains strong. OUTLOOK:

\n\n \n

\n\n\n

INVESTOR RELATIONS Brady Contact: Aaron Pearce Investor Relations 414-438-6895 Aaron_Pearce@Bradycorp.com See our web site at www.investor.bradycorp.com BRADY - FISCAL 2012\nQ3 FINANCIAL RESULTS 14

\n\n \n

\n\n\n

INCOME STATEMENTS BRADY - FISCAL 2012 Q3 FINANCIAL RESULTS 15 COMPARABLE INCOME STATEMENT (Millions of USD)

\n\n \n

\n\n\n

EBITDA RECONCILIATION BRADY - FISCAL 2012 Q3 FINANCIAL RESULTS 16 EBITDA (Millions of USD)

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