- Net Sales Increase 18 Percent PITTSBURGH, May 1
/PRNewswire-FirstCall/ -- MSA (NYSE) today announced that net sales
for the first quarter of 2008 were $266.3 million compared with
$225.9 million for the first quarter of 2007, an increase of $40.4
million, or 18 percent. Net income for the first quarter of 2008
was $16.0 million, or 45 cents per basic share, compared with $16.1
million, or 45 cents per basic share, for the same quarter last
year. Sales in the company's North American segment increased $23.7
million, or 19%, in the current quarter, primarily in the fire
service market. This increase reflects improved availability of
fire department funding under the U.S. Federal Government
Assistance to Firefighters Grant (AFG) program and the resumption
of self-contained breathing apparatus (SCBA) orders that fire
departments had delayed during the second half of 2007 as
manufacturers and the market made the transition to new National
Fire Protection Association (NFPA) SCBA performance standards.
First quarter 2008 SCBA sales were up $14.8 million. Sales of
thermal imaging cameras and fire helmets increased $3.9 million in
the first quarter of 2008. MSA's shipments of Advanced Combat
Helmets to the U.S. military and of the CG634 helmet to the
Canadian Forces were $4.1 million and $4.2 million higher,
respectively, in the current quarter. Continued strength in North
American construction and industrial markets was reflected in sales
of head protection products, which improved $1.6 million in the
current quarter. These sales increases were partially offset by
lower shipments of gas masks and closed-circuit breathing
apparatus. Sales in the International segment improved by $9.3
million, or 19%, in the current quarter. The sales increase was
primarily in South Africa, Latin America, and Australia, where
local currency sales were up $2.9 million, $2.2 million, and $1.0
million, respectively. The improvement in South Africa was due to
strong growth in sales to the mining industry. Currency translation
effects increased International segment sales, when stated in U.S.
dollars, by approximately $4.2 million. Sales in the European
segment increased $7.3 million, or 14%, in the current quarter,
reflecting the favorable currency translation effects of a stronger
euro. Local currency sales in Europe were slightly lower than in
the same quarter last year. Operating income (income before taxes,
currency exchange losses, interest, and restructuring and other
charges) was $33.8 for the first quarter of 2008, an increase of
$6.7 million, or 25%, from operating income of $27.1 million in the
same quarter last year. First quarter 2008 net income in the North
American segment was $3.8 million higher than in the same quarter
last year, primarily due to the previously-mentioned sales
increase. Net income in the International segment was up $1.0
million, on higher sales, partially offset by higher selling
expenses. European segment net income was $2.4 million lower
reflecting higher selling and research and development expenses. In
addition, current quarter net income in Europe includes a one-time
income tax charge of $0.4 million related to a recent tax law
change. The first quarter 2008 loss of $2.8 million in reconciling
items relates primarily to unrealized currency exchange losses on
intercompany items that are reported at the corporate level. "I am
very pleased with our first quarter growth in sales and incoming
orders for the North American fire service market," said William M.
Lambert, MSA President and COO. "As we have previously reported,
our sales to the North American fire service market were depressed
during the latter part of 2007 as a result of delays in the
availability of federal government funding to fire departments and
the transition to new SCBA standards. The new standards became
effective in August 2007 and many fire departments delayed their
SCBA buying decisions until breathing apparatus approved under the
new standard were available for evaluation. I believe that the
increase in our first quarter SCBA orders indicates that we have
worked through this transition period and confirms that there is
strong customer interest in our new SCBA technology." "I am also
pleased with the progress that we continue to make in expanding our
market reach and growing sales in our International segment and
with the recent strength in our incoming orders in Europe," Mr.
Lambert continued. "During the first quarter, we continued to make
good progress on our Project Magellan initiative to improve the
efficiency of our North American manufacturing operations and with
our transformation to a more fully global company. I believe we
will continue to see significant progress on these initiatives
throughout the remainder of the year," Mr. Lambert concluded. About
MSA: Established in 1914, MSA is a global leader in the
development, manufacture and supply of sophisticated safety
products that protect people's health and safety. Sophisticated
safety products typically integrate any combination of electronics,
mechanical systems and advanced materials to protect users against
hazardous or life-threatening situations. The company's
comprehensive line of products is used by workers around the world
in the fire service, homeland security, construction and other
industries, as well as the military. Principal products include
self-contained breathing apparatus, gas masks, gas detection
instruments, head protection, respirators and thermal imaging
cameras. The company also provides a broad range of consumer and
contractor safety products through retail channels. These products
are marketed and sold under the MSA Safety Works brand. MSA has
annual sales of approximately $1 billion, manufacturing operations
throughout the United States and Europe, and 42 international
locations. Additional information is available on the company's Web
site at http://www.msanet.com/. Cautionary Statement Regarding
Forward-Looking Statements: Except for historical information,
certain matters discussed in this press release may be
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Forward-looking
statements, including without limitation all projections and
anticipated levels of future performance, involve risks,
uncertainties and other factors that may cause our actual results
to differ materially from those discussed herein. Actual results
can be affected by any number of factors, many of which are outside
of management's control. Among the factors that could cause such
differences are spending patterns of government agencies,
competitive pressures, product liability claims and our ability to
collect related insurance receivables, the success of new product
introductions, currency exchange rate fluctuations, the
identification and successful integration of acquisitions and the
risks of doing business in foreign countries. These risks,
uncertainties and other factors are detailed from time to time in
our filings with the United States Securities and Exchange
Commission ("SEC"). You are strongly urged to review all such
filings for a more detailed discussion of such risks and
uncertainties. MSA's SEC filings are readily obtainable at no
charge at http://www.sec.gov/, as well as on a number of other
commercial web sites. Mine Safety Appliances Company Consolidated
Condensed Statement of Income (Unaudited) (In thousands, except
earnings per share) Three Months Ended March 31 2008 2007 Net sales
$266,344 $225,939 Other income 916 401 267,260 226,340 Cost of
products sold 159,992 136,770 Selling, general and administrative
66,094 56,572 Research and development 7,352 5,927 Restructuring
and other charges 1,106 234 Interest 2,494 1,993 Currency exchange
losses 4,094 233 241,132 201,729 Income before income taxes 26,128
24,611 Provision for income taxes 10,101 8,543 Net income 16,027
16,068 Basic earnings per share $.45 $.45 Diluted earnings per
share $.44 $.44 Dividends per common share $.22 $.18 Average number
of common shares outstanding (basic) 35,540 36,013 Mine Safety
Appliances Company Consolidated Condensed Balance Sheet (Unaudited)
(In thousands) March 31, December 31, 2008 2007 Current assets Cash
and cash equivalents $67,218 $74,981 Trade receivables, net 217,899
205,737 Inventories 178,320 155,332 Other current assets 60,754
61,000 Total current assets 524,191 497,050 Property, net 136,833
130,445 Prepaid pension cost 216,325 212,304 Goodwill 86,865 87,011
Other non-current assets 98,637 89,496 Total 1,062,851 1,016,306
Current liabilities Notes payable and current portion of long-term
debt $69,187 $54,676 Accounts payable 55,953 50,648 Other current
liabilities 103,339 103,865 Total current liabilities 228,479
209,189 Long-term debt 103,611 103,726 Pensions and other employee
benefits 133,084 126,790 Deferred tax liabilities 101,058 100,934
Other non-current liabilities 12,843 13,129 Minority interests 758
1,007 Shareholders' equity 483,018 461,531 Total 1,062,851
1,016,306 Mine Safety Appliances Company Segment Information
(Unaudited) (In thousands) Three Months Ended March 31 2008 2007
Net sales North America $146,642 $122,901 Europe 60,405 53,087
International 59,297 49,951 Total 266,344 225,939 Net income North
America $14,405 $10,601 Europe 251 2,614 International 4,180 3,229
Reconciling (2,809) (376) Total 16,027 16,068 DATASOURCE: MSA
CONTACT: Mark Deasy of MSA, +1-412-967-3357 Web site:
http://www.msanet.com/
Copyright