SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 28, 2010

 

 

MINE SAFETY APPLIANCES COMPANY

(Exact name of registrant as specified in its charter)

 

 

 

Pennsylvania		1-15579		25-0668780
(State or other jurisdiction of incorporation or organization)		(Commission File Number)		(IRS Employer Identification No.)
121 Gamma Drive RIDC Industrial Park O’Hara Township Pittsburgh, Pennsylvania				15238
(Address of principal executive offices)				(Zip Code)

Registrant’s telephone number, including area code: 412-967-3000

 

 

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

 

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

 

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

 

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

 

¨	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 July 28, 2010, the Company issued a press release announcing its financial results for the quarter ended June 30, 2010. A copy of the press release is furnished herewith as Exhibit 99.1 to this report.

 

Item 9.01.

Exhibits

 

Exhibit Number		Description
99.1		Mine Safety Appliances Company Press Release dated July 28, 2010, announcing financial results for the quarter ended June 30, 2010.

 

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SIGNATURES

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 thereunto duly authorized.

 

Date: July 28, 2010

 

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EXHIBIT INDEX

 

Exhibit Number		Description
99.1		Mine Safety Appliances Company Press Release dated July 28, 2010, announcing financial results for the quarter ended June 30, 2010.

 

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Exhibit 99.1

 

FROM:		MSA (Mine Safety Appliances Company)
		Ticker: MSA (NYSE) Contact: Mark Deasy – (412) 967-3357

FOR IMMEDIATE RELEASE

MSA Reports Higher Sales on Strength in Industrial Markets

PITTSBURGH, July 28, 2010 – MSA (NYSE) today announced that net sales for the second quarter of 2010 were $237.2 million, compared with $227.2 million for the second quarter of 2009, an increase of $10.0 million, or 4 percent. Net income for the second quarter of 2010 was $11.8 million, or 33 cents per basic share, a decrease of $0.7 million, or 5 percent, compared with $12.5 million, or 35 cents per basic share, for the same quarter last year.

MSA’s consolidated sales in the second quarter reflected continued strengthening in the company’s core industrial market, noted William Lambert, MSA President and CEO. “We continue to see signs of economic stabilization in the U.S. economy and in many parts of the world in which we operate,” Mr. Lambert said. “Our core industrial business, which comprises two thirds of our global sales and covers the energy, construction, mining and manufacturing markets, to name a few, showed continued strength in the second quarter with sales growth over the same period last year,” he said.

For the quarter, sales in the company’s North American segment increased $4.4 million, or 4 percent, compared to the same period in 2009. The increase reflects strengthening in end-user demand in industrial markets. Sales of head protection and instruments were up $4.3 million and $4.7 million, respectively, on improved demand in manufacturing and the oil, gas and petrochemical (OGP) markets. These increases were partially offset by lower ballistic helmet sales to the military, down $2.9 million, reflecting the transition to a new contract. Product shipments to the fire service market were down $2.1 million.

 

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Sales in the company’s European segment decreased $4.9 million, or 8 percent, in the current quarter. Local currency sales were down $1.7 million during the second quarter of 2010, or 3 percent, reflecting decreased fire service sales as government spending there responds to the continuing effects of the recession. Core industrial sales in Europe were up slightly from a year ago. Currency translation effects decreased second quarter European segment sales, when stated in U.S. dollars, by $3.2 million, due to a weaker euro.

Sales in MSA’s International segment increased by $10.4 million, or 19 percent, in the current quarter. Local currency sales were up $6.0 million or 10 percent, on higher shipments to the mining and other industrial markets. This strength was partially offset by weakness in fire service and military market products. Currency translation effects increased International segment sales, when stated in U.S. dollars, by $4.4 million.

Net income in the company’s North American segment was flat on the 5 percent increase in sales in the second quarter of 2010.

MSA’s European segment reported a net loss for the second quarter of $3.1 million, compared to net income of $1.0 million during the second quarter of 2009. The current quarter loss includes a $1.0 million after-tax restructuring charge related to the company’s previously announced initiative to streamline European operations. Excluding this one-time charge, European segment net income was down $3.1 million in the current quarter. The decrease was primarily due to the previously discussed decrease in sales and lower gross profits.

 

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International segment net income for the second quarter was $3.0 million, an increase of $2.1 million, compared to $0.9 million in the same quarter last year. Higher net income was primarily related to improved gross profits, reflecting a more favorable product and geographic sales mix.

“Without question the upswing in our International and North American core industrial business over the past several months has been accelerated by the favorable effects of economic stimulus plans implemented by governments around the world. While defensive measures certainly helped us weather the economic recession, our most recent focus on offensive, strategic measures have clearly helped us achieve higher levels of sales and margins this quarter. As we look to the second half of 2010, we remain highly committed to our corporate strategy to grow our core product lines and core markets, and we plan to continue to invest in those targeted areas that will help us to accelerate growth, generate greater shareholder value, and build a foundation for MSA’s long-term success.” Mr. Lambert concluded.

 

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About MSA:

Established in 1914, MSA is a global leader in the development, manufacture and supply of safety products that protect people’s health and safety. Many MSA 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, oil, gas and petrochemical industry, homeland security, construction, mining and other industries, as well as the military. Principal products include self-contained breathing apparatus, gas masks, gas detection instruments, head protection, ballistic body armor, fall protection devices 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 in the United States, Europe, Asia and Latin America, and more than 40 international locations. Additional information is available on the company’s Web site at 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 www.sec.gov, as well as on a number of other commercial web sites.

 

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Mine Safety Appliances Company

Consolidated Condensed Statement of Income (Unaudited)

(In thousands, except earnings per share)

 

		Three Months Ended June 30							Six Months Ended June 30
		2010				2009			2010				2009
Net sales		$	237,173			$	227,232		$	449,607			$	445,407
Other income			15				672			1,320				1,531
			237,188				227,904			450,927				446,938
Cost of products sold			146,947				141,917			276,928				277,115
Selling, general and administrative			60,912				56,041			122,820				112,861
Research and development			8,282				7,273			16,018				14,286
Restructuring and other charges			2,618				966			9,427				9,061
Interest			1,685				1,914			3,225				3,761
Currency exchange (gains) losses			(1,477	)			579			(3,635	)			(347	)
			218,967				208,690			424,783				416,737
Income before income taxes			18,221				19,214			26,144				30,201
Provision for income taxes			6,287				6,986			9,090				10,600
Net income			11,934				12,228			17,054				19,601
Net (income) loss attributable to the noncontrolling interests			(107	)			230			(321	)			78
Net income attributable to Mine Safety Appliances Company			11,827				12,458			16,733				19,679
Basic earnings per common share		$	0.33			$	0.35		$	0.47			$	0.55
Diluted earnings per common share		$	0.32			$	0.35		$	0.46			$	0.55
Dividends per common share		$	0.25			$	0.24		$	0.49			$	0.48
Basic shares outstanding			35,839				35,672			35,768				35,652
Diluted shares outstanding			36,481				35,818			36,352				35,821

 

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Mine Safety Appliances Company

Consolidated Condensed Balance Sheet (Unaudited)

(In thousands)

 

		June 30, 2010			December  31, 2009
Current assets
Cash and cash equivalents		$	60,141		$	61,983
Trade receivables, net			182,184			173,355
Inventories			130,364			123,944
Other current assets			59,914			74,743
Total current assets			432,603			434,025
Property, net			135,594			144,575
Prepaid pension cost			112,332			105,812
Goodwill			82,439			84,727
Other noncurrent assets			126,651			106,089
Total			889,619			875,228
Current liabilities
Notes payable and current portion of long-term debt		$	54,677		$	16,326
Accounts payable			62,719			43,487
Other current liabilities			89,863			108,637
Total current liabilities			207,259			168,450
Long-term debt			82,111			82,114
Pensions and other employee benefits			118,583			125,387
Deferred tax liabilities			44,841			44,800
Other noncurrent liabilities			14,259			15,077
Equity			422,566			439,400
Total			889,619			875,228

 

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Mine Safety Appliances Company

Segment Information (Unaudited)

(In thousands)

 

		Three Months Ended June 30								Six Months Ended June 30
		2010				2009				2010				2009
Net sales
North America		$	116,774			$	112,358			$	215,888			$	223,079
Europe			56,406				61,292				113,030				121,674
International			63,993				53,582				120,689				100,654
Total			237,173				227,232				449,607				445,407
Net income (loss) attributable to Mine Safety Appliances Company
North America		$	10,834			$	10,912			$	14,269			$	14,636
Europe			(3,131	)			994				(6,946	)			3,215
International			3,024				902				6,949				1,365
Reconciling			1,100				(350	)			2,461				463
Total			11,827				12,458				16,733				19,679

 

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