Press Release

PITTSBURGH, May 3 /PRNewswire/ -- Sales growth in key products, strong gross margins and continuing cost controls led MSA (Amex: MSA) to achieve record first quarter earnings for the second consecutive year. Net sales for the first quarter of 2001 were $133,595,000, compared with $129,236,000 for the first quarter of 2000. Net income increased 5 percent to a new record for the first quarter of $7,847,000, or 66 cents per share, compared with $7,459,000, or 58 cents per share, for the same period last year.

Sales for the first quarter in local currencies grew a solid 8 percent over a very strong first quarter in 2000, which had included meaningful shipments of backlog in self-contained breathing apparatus in North America. The continuing strength in the U.S. dollar reduced the reported sales (when stated in U.S. dollars) to a 3 percent growth rate. First quarter 2001 sales in North America benefited from two key product lines introduced in 2000 -- the Evolution(TM) Thermal Imaging Cameras (TIC) and the CairnsHelmets line of fire helmets. Specialty chemical shipments also were up sharply from the depressed levels experienced during the first three quarters of 2000. Additionally, incoming orders for exports from Germany (especially to Central and Eastern Europe and the United States) were strong. Overall, new order bookings in the first quarter exceeded invoicing comfortably.

Net income for the first quarter was 5 percent higher than the corresponding prior year quarter. This increase, which exceeded internal goals, reflects the higher sales levels, strong gross margins and controlled operating expenses achieved during the quarter. EBIT rose 9 percent to $14,072,000 for the first quarter of 2001 compared to $12,899,000 in the first quarter of last year. Earnings per share increased 14 percent on higher income and the effect of share repurchases that reduced average shares outstanding by 8 percent.

With MSA continuing its pace of strong performance, the Board of Directors declared a second quarter dividend of 14 cents per share on common stock, an increase of 17 percent over the first quarter dividend of 12 cents per share. The dividend is payable on June 8, 2001 to shareholders of record on May 14, 2001. The Board also declared a dividend of 56-1/4 cents per share on preferred stock, payable June 1, 2001 to shareholders of record May 14, 2001.

"The strong first quarter performance is very satisfying, particularly as it was gained in the face of a difficult economic environment in the North American industrial sector," said John T. Ryan III, Chairman and CEO. "It continues a trend that began in late 1999."

"The initiatives we have put in place over the last several years in distribution, in market and product development and in operational processes have been paying off. The acquisitions of CairnsHelmets and ISI Group in 2000 added one of the most respected names in firefighter head protection and proven expertise in TIC technology to our product lines and strengthened our sales volume. The recent rebound in specialty chemical sales after very weak demand from the pharmaceutical industry for most of last year is also encouraging," Mr. Ryan continued.

"I am pleased with the initial 2001 results of our operations in Europe, which particularly benefited from several ongoing projects to streamline operations and provide innovative product offerings. Our objective in Europe is to proceed from these `first fruits' to a `full harvest' in meeting our targets this year."

"Our overall challenge will be to make substantial gains from our ongoing and new initiatives to overcome the effects of the current economic downturn in North America. We are particularly encouraged by our success in the first quarter but realize this challenge will be ongoing until the North American industrial economy improves. We continue to pursue our multi-year plan to improve MSA's market position and financial performance," Mr. Ryan concluded.

This release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements may include, without limitation, statements regarding expectations for new product introductions, cost reduction programs, marketing and distribution initiatives, and sales and earnings. Actual results may differ from expectations contained in such forward-looking statements and can be affected by any number of factors, many of which are outside of management's direct control. Among the factors that could cause such differences are the effects of cost reduction efforts in Europe, timing and market acceptance of new products, the company's ability to fulfill order backlogs, market and operating conditions of specialty chemical customers, the economic environment and interest and currency exchange rates.

The results from operations for the three-month period ended March 31 are as follows.

(Note: Amounts in thousands, except earnings per share and shares outstanding)

Three Months Ended

March 31,

2001 2000 Net sales $133,595 $129,236
Other income 421 1,088
Cost of products sold 80,528 78,849
Selling and administrative costs 32,795 32,546
Depreciation, amortization and other costs 7,991 6,598
Income before income taxes 12,702 12,331
Taxes on income 4,855 4,872
Net income $ 7,847 $ 7,459
Basic earnings per common share .66 .58
Average number of common shares outstanding (basic) 11,835,410 12,876,447

Certain prior year amounts have been reclassified to conform to the current year presentation.

MAKE YOUR OPINION COUNT - Click Here

http://tbutton.prnewswire.com/prn/11690X64396878
SOURCE Mine Safety Appliances Company
CONTACT: Mark Deasy of Ketchum, 412-456-3843, for Mine Safety Appliances, or Dennis L. Zeitler of Mine Safety Appliances, 412-967-3047