MSA Announces Record Second Quarter Sales and Income

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...


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," he said.

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 petrochemical industry.

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.

This content continues onto the next page...