MSA Announces Record Sales and Earnings
PITTSBURGH, Nov 3, 2004 /PRNewswire-FirstCall via COMTEX/ -- MSA (NYSE: MSA) today announced that net sales for the third quarter of 2004 were $219,962,000, compared with $171,927,000 for the third quarter of 2003, an increase of $48.0 million, or 28 percent. Net income from continuing operations for the third quarter of 2004 improved 74 percent to $19,111,000, or $.51 per basic share, compared with $10,984,000, or $.30 per basic share, for the same quarter last year.
Net sales for the nine months ended September 30, 2004 were $627,566,000, compared with $508,257,000 in 2003, an increase of $119.3 million, or 23 percent. Net income from continuing operations for the nine months ended September 30, 2004 improved 58 percent to $53,367,000, or $1.44 per basic share, compared with $33,675,000, or $.91 per basic share, for the same period last year.
Including the sale of a discontinued business in September 2003, noted below, net income for the third quarter of 2004 was $19,111,000, or $.51 per basic share, compared with $24,540,000, or $.67 per basic share, for the same quarter last year. Net income for the nine months ended September 30, 2004 was $53,367,000, or $1.44 per basic share, compared with $50,018,000, or $1.36 per basic share, for the same period last year. Third quarter 2003 and year- to-date 2003 net income included income of $13,556,000, or $.37 per basic share, and $16,343,000, or $.45 per basic share, respectively, related to the Callery Chemical Division which was sold to BASF Corporation in September 2003 for a gain of $13,658,000.
Third quarter sales growth occurred primarily in the company's North American segment, led by strong shipments of self-contained breathing apparatus (SCBA) and thermal imaging cameras (TICs) to the fire service market, and Advanced Combat Helmets and gas masks to homeland security and military markets. The company's broad range of sophisticated new products are selling well, assisted by higher government funding to support the fire service, homeland security and the war on terrorism.
The company continues to see strong demand for its latest generation of SCBAs and Millennium(R) Gas Masks, which were among the first such devices to meet new performance standards adopted by the National Fire Protection Association (NFPA) and the National Institute for Occupational Safety and Health (NIOSH) for protection against chemical, biological, radiological and nuclear (CBRN) agents. These standards are helping to provide first responders with higher levels of protection against possible terrorist attacks. Shipments of the Advanced Combat Helmet, which was recognized as one of the Greatest Inventions of 2002 by the U.S. Army, were also significantly higher during the current quarter.
MSA's Evolution(R) 5000 TIC, which combines the functionality and durability required by the fire service with features and performance not found on other small format cameras, continues to be the camera of choice in the fire service market. Sales of instrument products also grew significantly on improved industrial market demand for the company's latest generation portable instruments, such as the Solaris(R) Multigas Detector, which is one of the smallest and lightest four-gas monitors available today. Industrial helmet sales in North America have also been good.
Local currency sales in the company's European segment grew modestly during the quarter and were assisted by the acquisition of Sordin AB, a leading manufacturer of passive and electronic hearing protection devices for the industrial, law enforcement and military markets. In MSA's International segment, local currency sales during the third quarter were somewhat higher due to improved performance in Latin America and the Asia Pacific region. When stated in U.S. dollars, reported sales in these segments also increased modestly as a result of favorable currency translation effects associated with a stronger Euro, Australian Dollar, and South African Rand.
Third quarter income growth occurred primarily in the company's North American segment and is a result of the previously discussed sales growth. Income also improved in MSA's European segment, primarily as a result of the Sordin acquisition. International segment income also improved on higher sales.
"Our strong performance, which continues a trend that began several years ago, is the direct result of our focus on key markets and customers, including the fire service, homeland security and the military," said John T. Ryan III, MSA Chairman and CEO. "We have been particularly diligent in identifying promising markets and developing innovative products that meet new performance standards and anticipate end-user needs. I am particularly pleased by the diversity of our sales performance in North America where we have shown sales gains in almost every active commercial product area, including those driven by special government funding and those that are not. I believe that a heightened commitment to worker safety and a focus on homeland security throughout the world will continue to provide MSA with attractive opportunities to respond to and meet customers' safety equipment needs across a wide range of end-user markets and applications," Mr. Ryan said.
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. MSA products include self-contained breathing apparatus, gas masks, gas detection instruments, head protection, respirators and thermal imaging cameras. The company also provides a broad offering of consumer and contractor safety products through retail channels. These products are marketed and sold under the MSA Safety Works brand name. MSA has manufacturing operations throughout the United States and Europe and 28 international affiliates. More information about MSA is available on the company's Web site at http://www.msanet.com .
Cautionary Statement Regarding Forward-Looking Statements:
Except for historical information, the matters discussed in this press release are forward-looking statements within the meaning of the 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. These risks, uncertainties and other factors are detailed from time to time in our filings with the United States Securities and Exchange Commission ("SEC"), including without limitation our most recent filing on Form 10-K, filed on March 15, 2004 and our Form S-3/A, filed on June 23, 2004. You are strongly urged to review all such filings for a more detailed discussion of such risks and uncertainties. Our 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 and shares outstanding)
Three Months Ended Nine Months Ended
September 30 September 30
2004 2003 2004 2003
Net sales $219,962 $171,927 $627,566 $508,257
Other income 2,018 1,586 3,482 2,116
Cost of products sold 128,227 102,010 362,166 299,149
Selling, general and
administrative 50,352 41,761 145,229 123,076
Research and development 5,588 5,599 15,890 15,495
Depreciation and
amortization 6,647 5,522 18,228 16,572
Interest 996 1,033 2,725 3,325
Currency exchange
loss (gain) (951) (121) 969 (1,922)
Income from continuing
operations before
income taxes 31,121 17,709 85,841 54,678
Provision for income
taxes 12,010 6,725 32,474 21,003
Net income from
continuing operations 19,111 10,984 53,367 33,675
Net income from
discontinued operations (102) 2,685
Gain on sale of
discontinued operations
- after tax 13,658 13,658
Net income 19,111 24,540 53,367 50,018
Basic earnings per share
Continuing operations .51 .30 1.44 .91
Discontinued operations .37 .45
Net income .51 .67 1.44 1.36
Diluted earnings per share
Continuing operations .50 .29 1.40 .91
Discontinued operations .36 .44
Net income .50 .65 1.40 1.35
Average number of common
shares outstanding
(basic) 37,126,586 36,743,757 37,048,383 36,690,147
Mine Safety Appliances Company
Consolidated Condensed Balance Sheet (Unaudited)
(In thousands) September 30, December 31,
2004 2003
Current assets
Cash and cash equivalents $62,210 $73,244
Trade receivables, net 160,565 129,900
Inventories 112,396 90,103
Other current assets 33,961 30,995
Total current assets 369,132 324,242
Property, plant and equipment, net 120,936 120,560
Prepaid pension cost 130,243 121,290
Goodwill 48,142 44,810
Other non-current assets 31,408 32,983
Total 699,861 643,885
Current liabilities
Notes payable and current
portion of long-term debt $5,365 $5,666
Accounts payable 37,973 40,029
Other current liabilities 82,242 69,020
Total current liabilities 125,580 114,715
Long-term debt 59,911 59,915
Pension and other employee benefits 76,189 74,808
Deferred tax liabilities 75,639 70,845
Other non-current liabilities 13,157 15,744
Shareholders' equity 349,385 307,858
699,861 643,885
Mine Safety Appliances Company
Segment Information (Unaudited)
Three Months Ended Nine Months Ended
(In thousands) September 30 September 30
2004 2003 2004 2003
Net Sales
North America $ 151,197 $ 112,889 $ 424,846 $ 331,054
Europe 40,739 34,890 121,795 106,164
International 28,026 24,148 80,925 71,039
Total 219,962 171,927 627,566 508,257
Net income from
continuing operations
North America $16,022 $9,636 $44,492 $26,681
Europe 1,304 686 4,447 2,750
International 2,230 919 5,522 3,792
Reconciling (445) (257) (1,094) 452
19,111 10,984 53,367 33,675
SOURCE MSA
Mark Deasy of MSA, +1-412-967-3357
http://www.msanet.com
