MSA Announces Strong Fourth Quarter and Year-End Results

PITTSBURGH, Feb. 28, 2011 /PRNewswire/ -- MSA (NYSE: MSA) today announced that net sales for the year ended December 31, 2010 were $977 million compared with $910 million in 2009, an increase of $67 million, or 7 percent.  Net income for the year ended December 31, 2010 was $38 million, or $1.06 per basic share, a decrease of $5 million, or 12 percent, compared with $43 million, or $1.21 per basic share, for 2009.  Excluding after-tax costs of $6 million associated with the October acquisition of General Monitors, and restructuring charges of $10 million, annual net income was $54 million or $1.51 per basic share.

Net sales for the fourth quarter of 2010 were $285 million compared with $236 million for the same period of 2009, an increase of $49 million, or 21 percent, with organic sales increasing $33 million, or 14 percent.  Net income for the fourth quarter of 2010 was $12 million, or 33 cents per basic share, a decrease of $1 million, or 8 percent, compared with $13 million, or 35 cents per basic share, for the same quarter last year.  Excluding after-tax costs of $4 million associated with the acquisition of General Monitors, and $2 million of restructuring charges, net income was $18 million, or 50 cents per basic share for the quarter.  

"MSA's consolidated fourth quarter results reflect our focused efforts to grow the business and the improvement in economic and business conditions we are seeing in many parts of the world," noted William Lambert, MSA President and CEO.   "We continue to see nice growth in core product groups in both developed and emerging markets, and our most recent results reinforce that we are executing an effective strategy with increased revenues and operating income in all of our reporting segments," he said.

Sales in the company's North American segment increased $32 million, or 31 percent, in the fourth quarter of 2010.  Organic sales, excluding the acquisition of General Monitors, increased $20 million, or 19 percent.  The acquisition of General Monitors increased North American segment sales by $12 million in the quarter.   The company continued to experience strong demand in its core industrial market throughout the quarter, which helped to fuel a $6 million increase in organic sales of gas detection products.  Sales of head protection products and respirators also benefited from continued strengthening in the core industrial market.  Sales of both of these product groups increased $2 million in the quarter.  Shipments of ballistic helmets to the military market increased $5 million compared to the fourth quarter of 2009, while sales of self-contained breathing apparatus (SCBA) to the fire service market increased $2 million in the quarter.

Sales in the company's European segment increased $5 million, or 7 percent, in the fourth quarter of 2010.  Currency translation effects decreased fourth quarter European segment sales, when stated in U.S. dollars, by $4 million, primarily due to a weaker euro.  Local currency organic sales increased $5 million, while the acquisition of General Monitors increased sales by $4 million in the quarter.  Local currency organic sales of permanent instruments were up $3 million on higher shipments to core industrial markets in Europe.  Local currency sales of SCBA were up $2 million on higher shipments to fire service markets in Northern Europe.

Sales in MSA's International segment increased $12 million, or 20 percent, in the fourth quarter of 2010.  Local currency sales increased $8 million reflecting strong sales in Latin America and China, primarily in industrial markets.  Currency translation effects increased fourth quarter International segment sales, when stated in U.S. dollars, by $4 million, primarily related to a strengthening of the Australian dollar, South African rand and Brazilian real.      

Net income in MSA's North American segment increased $0.2 million in the fourth quarter of 2010.  The increase reflects the previously-discussed increase in sales and favorable income tax adjustments.  During the quarter, the company recognized tax benefits totaling $1 million associated with the extension of the research and development credit in the United States.  These improvements were offset by an increase in operating expenses attributable to the higher level of business in the quarter.

The company's European segment reported a net loss of $0.4 million in the fourth quarter of 2010, compared to income of $0.2 million in the fourth quarter of 2009.   Currency translation effects increased current quarter European segment net income, when stated in U.S. dollars, by approximately $0.1 million.  

Net income in MSA's International segment was $2 million higher in the fourth quarter of 2010.  This increase was primarily related to higher sales in China and Latin America, and improved gross profit margins, reflecting the progress being made in managing manufacturing costs under Project Magellan – the company's long-term Operational Excellence initiative.  Currency translation effects increased current quarter International segment net income, when stated in U.S. dollars, by approximately $0.2 million.  

"Our ongoing commitment to investing in core products in both developed and emerging markets and our focus on managing costs clearly helped our team generate a strong finish to 2010," Mr. Lambert said.  "Looking forward, we remain committed to executing our strategy and I am confident that our focus on growing our core product revenues around the globe, and developing new and innovative products that exceed customer expectations, while diligently managing our costs, will provide a solid foundation for long-term success," Mr. Lambert concluded.

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.  Principal products include self-contained breathing apparatus, gas masks, gas detection instruments, head protection, respirators 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 throughout the United States and Europe, and 42 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 global economic conditions, spending patterns of government agencies, competitive pressures, product liability claims, 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.

SOURCE MSA