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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): May 5, 2005

 

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 May 5, 2005, the Company issued a press release announcing its financial results for the quarter ended March 31, 2005. 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 May 5, 2005, announcing financial results for the quarter ended March 31, 2005.

 

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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: May 5, 2005

 

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EXHIBIT INDEX

 

Exhibit Number		Description
99.1		Mine Safety Appliances Company Press Release dated May 5, 2005, announcing financial results for the quarter ended March 31, 2005.

 

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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 Announces Record Sales and Earnings

Global Safety Equipment Manufacturer Continues Strong Performance

 

•

Net Sales Increase 17%

 

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Net Income Up 32%

 

PITTSBURGH, May 5, 2005 – MSA (NYSE) today announced that net sales for the first quarter of 2005 were $228.0 million, compared with $194.5 million for the first quarter of 2004, an increase of $33.5 million, or 17 percent. Net income for the first quarter of 2005 improved $5.2 million, or 32 percent, to $21.4 million, or 57 cents per diluted share, compared with $16.1 million, or 43 cents per diluted share, for the same quarter last year.

 

North American segment sales increased $18 million in the first quarter of 2005, primarily due to strong shipments of Advanced Combat Helmets to the U.S. military. Local currency sales in MSA’s European and International segments improved approximately $6.1 million and $5.3 million, respectively, in the first quarter of 2005. Nearly half of the sales increase in Europe was attributable to MSA Sordin, a leading manufacturer of hearing protection devices for industrial, law enforcement and military markets, which the company acquired in June of last year.

 

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European segment sales during the current quarter also benefited from successful MSA initiatives and the shipment of several large breathing apparatus orders for the fire service and police markets. Within MSA’s International segment, local currency sales growth occurred primarily in Australia, Brazil and South Africa. Approximately $2.9 million and $1.3 million of the current quarter increases in European and International segment sales, respectively, when stated in U.S. dollars, were due to the favorable translation effects of stronger local currencies. Net income increased substantially in all three geographic segments, primarily due to the previously-discussed sales growth.

 

“It is very pleasing to report our highest quarterly sales and net income from regular operations ever,” said John T. Ryan III, MSA Chairman and CEO. “Although our income was higher in the third quarter of 2003, those results included a one-time gain on the sale of a discontinued business. Our current quarter results reflect MSA’s continued focus on identifying promising markets and developing innovative products that anticipate end-user needs around the world. While our North American segment continues to perform at record levels, the substantial growth in all of our segments during the current quarter is particularly encouraging,” Mr. Ryan continued. “We are focused on growing our European and International businesses through global new product development, selected acquisitions, and major sales and marketing efforts in promising new geographical markets, particularly in Eastern Europe and Asia.”

 

“In the U.S., military and homeland security markets have been excellent for us in recent years, and we are working to further strengthen our position in those key areas. With our global focus, I believe that we are well positioned to respond to the heightened commitment to worker safety throughout the world,” Mr. Ryan concluded.

 

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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 more than 30 international locations. Additional information is available on the company’s Web site at http://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 the 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 timing and market acceptance of new products, the company’s ability to fulfill order backlogs, the timing and ability to obtain military contracts, delays in obtaining raw materials, the economic environment and interest and currency exchange rates. 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. Our 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

Condensed Consolidated Statement of Income (Unaudited)

 

(In thousands, except earnings per share and shares outstanding)

 

		Three Months Ended March 31
		2005			2004
Net sales		$	228,048		$	194,490
Other income			1,332			786
Cost of products sold			134,680			112,687
Selling, general and administrative			53,558			50,194
Research and development			5,680			5,215
Interest			1,218			514
Currency exchange losses			615			667
Income before income taxes			33,629			25,999
Provision for income taxes			12,276			9,861
Net income			21,353			16,138
Basic earnings per common share		$	.58		$	.44
Diluted earnings per common share		$	.57		$	.43
Average number of common shares outstanding (basic)			36,485,575			36,963,548

 

(more)

 

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Mine Safety Appliances Company

Condensed Consolidated Balance Sheet

 

(In thousands)

 

		March 31 2005			December 31 2004
		(Unaudited)
Current assets
Cash and cash equivalents		$	59,446		$	76,545
Trade receivables, net			168,501			161,584
Inventories			126,090			124,846
Other current assets			30,046			34,685
Total current assets			384,083			397,660
Property, plant and equipment, net			119,298			123,716
Prepaid pension cost			133,929			131,496
Goodwill			48,796			49,495
Other non-current assets			30,581			31,743
Total			716,687			734,110
Current liabilities
Notes payable and current portion of long-term debt		$	29,805		$	6,378
Accounts payable			42,906			40,705
Other current liabilities			79,097			79,984
Total current liabilities			151,808			127,067
Long-term debt			54,283			54,463
Pension and other employee benefits			80,912			83,628
Deferred tax liabilities			75,202			76,704
Other non-current liabilities			13,686			14,637
Shareholders’ equity			340,796			377,611
Total			716,687			734,110

 

(more)

 

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Mine Safety Appliances Company

Segment Information (Unaudited)

 

(In thousands)

 

		Three Months Ended March 31
		2005				2004
Net Sales
North America		$	147,661			$	129,630
Europe			48,341				39,386
International			32,046				25,474
Total			228,048				194,490
Net income
North America		$	15,942			$	13,782
Europe			4,196				1,832
International			1,791				1,130
Reconciling			(576	)			(606	)
Total			21,353				16,138

 

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