PITTSBURGH , July 28 /PRNewswire-FirstCall/ -- MSA (NYSE: MSA) today
announced that net sales for the second quarter of 2008 were $293.2 million
compared with $249.1 million for the second quarter of 2007, an increase of
$44.1 million, or 18 percent. Net income for the second quarter of 2008 was
$20.0 million, or 56 cents per basic share, an increase of $2.7 million, or 15
percent, compared with $17.3 million, or 49 cents per basic share, for the
same quarter last year.
"I am very pleased to report the strongest second quarter sales and net
income in MSA history," said William M. Lambert , MSA President and CEO. "This
performance is a direct result of our ongoing initiatives to develop
innovative new products, expand our market reach, and improve operational
effectiveness." Mr. Lambert added he was particularly pleased to see the
company make strong improvement in the company's operating income performance
for the quarter. "I believe we will continue to see significant progress on
each of these initiatives during the remainder of 2008 and in future years,"
Operating income (income before taxes, currency exchange gains and losses,
interest, and restructuring and other charges) was $35.0 million for the
second quarter of 2008, an increase of $5.7 million, or 19 percent, from
operating income of $29.3 million in the same quarter last year.
Sales in the company's North American segment increased $16.9 million, or
13 percent, in the second quarter of 2008. Self-contained breathing
apparatus (SCBA) sales were up $9.6 million in the current quarter. This
increase in SCBA sales was primarily due to $12.6 million in shipments to the
U.S. Air Force. Sales of head protection products, primarily to construction
and industrial markets, improved $2.0 million in the current quarter. Higher
sales of Advanced Combat Helmets to the U.S. military and of the CG634
ballistic helmet to the Canadian Forces, up $3.9 million and $4.9 million,
respectively, were substantially offset by a $7.7 million reduction in
shipments of other ballistic protection products. Instrument sales were $3.4
million higher in the current quarter, primarily due to strong shipments of
the recently-introduced Altair(R) Multigas Detector to the oil, gas and
Sales in the company's European segment increased $20.9 million, or 37
percent, in the current quarter. Local currency sales increased $8.6 million,
reflecting strong sales in Eastern Europe and higher shipments of helmets to
fire service and law enforcement agencies in France . Currency translation
effects increased European segment sales, when stated in U.S. dollars, by
$12.3 million, reflecting the stronger euro.
Sales in MSA's International segment improved by $6.3 million, or 10
percent, in the current quarter. The sales increase was primarily in Africa
and Latin America , where local currency sales were up $3.9 million and $4.1
million, respectively. The improvement in Africa was primarily due to strong
growth in sales to the mining industry. These increases were partially offset
by lower sales in the Middle East , where second quarter 2007 sales included a
$4.8 million shipment of ballistic vests to the Iraq Joint Contracting
Command. Currency translation effects increased International segment sales,
when stated in U.S. dollars, by approximately $3.6 million.
Second quarter 2008 net income in the North American segment was $1.0
million, or 9 percent, higher than in the same quarter last year, primarily
due to the previously-mentioned sales increase. European segment net income
was up $2.3 million, or 125 percent. Current quarter net income in Europe
included an after-tax gain of $0.5 million on the sale of property in France .
Currency translation effects increased European segment net income, when
stated in U.S. dollars, by approximately $0.5 million. The remainder of the
increase in European segment net income was due to the previously-discussed
increase in sales. Net income in the International segment was $4.3 million,
compared to $4.4 million in the same quarter last year. Currency translation
effects did not have a significant impact on International segment net income.
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