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, 2009

 

 

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, 2009, the Company issued a press release announcing its financial results for the quarter ended June 30, 2009. 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, 2009, announcing financial results for the quarter ended June 30, 2009.

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, 2009

 

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EXHIBIT INDEX

 

Exhibit Number		Description
99.1		Mine Safety Appliances Company Press Release dated July 28, 2009, announcing financial results for the quarter ended June 30, 2009.

 

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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 Second Quarter Results

PITTSBURGH, July 28, 2009 – MSA (NYSE) today announced that net sales for the second quarter of 2009 were $227.2 million compared with $293.2 million for the second quarter of 2008, a decrease of $66.0 million, or 22 percent. Net income for the second quarter of 2009 was $12.5 million, or 35 cents per basic share, a decrease of $7.5 million, or 38 percent, compared with $20.0 million, or 56 cents per basic share, for the same quarter last year.

“MSA’s consolidated sales continue to be clearly impacted by the effects of the ongoing recession,” said William M. Lambert, MSA President and CEO. “Since the fourth quarter of 2008 and throughout this year we have been operating with a keen understanding that 2009 would be challenging for each of our three geographic segments. While our top line results have tracked with this expectation, I’m pleased and proud of the efforts our leadership team and our associates have put forth to manage MSA’s expenses across the board. In particular, I was encouraged by a 19 percent reduction in selling, general and administrative expenses that we were able to achieve during the current quarter,” he said. “Maintaining a high level of cost discipline throughout the balance of this year, while continuing to move forward with key new product development initiatives that restore our longer-term top line results, will continue to be our major focus in the second half of 2009. And, based on the progress we have made year-to-date, I am confident we will be successful on both fronts.”

 

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Sales in the company’s North American segment decreased $36.3 million, or 24 percent, in the second quarter of 2009. The decrease reflects the ongoing impact of the recession on end-user demand, especially in construction, oil and gas, and other industrial

markets, as well as the completion of certain government contracts. Sales of self-contained breathing apparatus (SCBA) were $12.2 million lower in the current quarter. Second quarter 2008 SCBA sales included $12.6 million in shipments to the U.S. Air Force. Excluding these shipments, SCBA sales were flat quarter-to-quarter. Shipments of Advanced Combat Helmets to the U.S. military were down $8.8 million, reflecting a gap in production due to the transition to a new contract. Sales of CG634 ballistic helmets to the Canadian Forces were down $3.9 million due to completion of the contract. Shipments of head protection and fall protection were down $6.6 million and $2.4 million, respectively, as the effects of the recession reduced demand in construction and industrial markets.

Sales in the company’s European segment decreased $21.0 million, or 27 percent, in the current quarter. Local currency sales were down $8.8 million, primarily due to lower shipments of helmets and gas masks to military and first responder markets in France and Germany. Local currency sales in Eastern Europe were flat quarter-to-quarter. Currency translation effects reduced European segment sales, when stated in U.S. dollars, by $12.2 million, reflecting the weaker euro.

Sales in MSA’s International segment decreased by $8.6 million, or 13 percent, in the current quarter. Local currency sales were flat. Lower sales in Latin America, Australia and Africa, primarily due to the effects of the recession on the mining industry, were substantially offset by higher sales in China and the Middle East. Currency translation effects reduced International segment sales, when stated in U.S. dollars, by $8.3 million.

 

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On a currency adjusted basis, and in particular on the relative strength of the U.S. dollar compared to the second quarter of last year, MSA’s global sales declined 15 percent for the quarter, with a decline of 24 percent in North America, 11 percent in Europe, and no change in International.

Net income in the company’s North American segment was down only $0.7 million, or 6 percent, on the 24 percent decrease in sales in the second quarter of 2009. The decrease was primarily related to the previously-discussed decrease in sales, substantially offset by the positive results of ongoing initiatives to reduce operating expenses.

Net income in the European segment was down $4.4 million, or 91 percent, in the second quarter of 2009. Local currency net income was $3.3 million lower due to the previously-discussed decrease in sales. Currency translation effects reduced European segment net income, when stated in U.S. dollars, by approximately $1.1 million.

Net income in MSA’s International segment was down $2.1 million, or 59 percent, in the current quarter. Local currency income was $1.2 million lower, primarily due to the previously-discussed decrease in sales. Currency translation reduced International segment net income by approximately $0.9 million.

“In these uncertain economic times, our global teams are closely monitoring the markets we serve and are adjusting our responses to meet market realities. We must continue to be diligent in our efforts to reduce costs and manage our business in ways that allow us to not only weather the current downturn, but to be responsive in seizing opportunities when a recovery occurs,” Mr. Lambert 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 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 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
		2009			2008				2009				2008
Net sales		$	227,232		$	293,162			$	445,407			$	559,506
Other income			672			1,464				1,531				2,523
			227,904			294,626				446,938				562,029
Cost of products sold			141,917			181,573				277,115				341,565
Selling, general and administrative			56,041			68,919				112,861				135,013
Research and development			7,273			9,202				14,286				16,554
Restructuring and other charges			966			1,125				9,061				2,231
Interest			1,914			2,281				3,761				4,775
Currency exchange losses (gains)			579			(76	)			(347	)			4,018
			208,690			263,024				416,737				504,156
Income before income taxes			19,214			31,602				30,201				57,873
Provision for income taxes			6,986			11,676				10,600				21,777
Net income			12,228			19,926				19,601				36,096
Net loss (income) attributable to the noncontrolling interests			230			28				78				(115	)
Net income attributable to Mine Safety Appliances Company			12,458			19,954				19,679				35,981
Basic earnings per common share		$	0.35		$	0.56			$	0.55			$	1.01
Diluted earnings per common share		$	0.35		$	0.55			$	0.55			$	1.00
Dividends per common share		$	0.24		$	0.24			$	0.48			$	0.46
Basic shares outstanding			35,672			35,594				35,652				35,567
Diluted shares outstanding			35,818			35,987				35,821				36,004

 

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Mine Safety Appliances Company

Consolidated Condensed Balance Sheet (Unaudited)

(In thousands)

 

		June 30, 2009			December 31, 2008
Current assets
Cash and cash equivalents		$	62,667		$	50,894
Trade receivables, net			173,978			198,622
Inventories			145,312			159,428
Other current assets			60,516			68,831
Total current assets			442,473			477,775
Property, net			145,437			141,409
Prepaid pension cost			78,411			78,037
Goodwill			83,638			83,211
Other noncurrent assets			109,807			95,378
Total			859,766			875,810
Current liabilities
Notes payable and current portion of long-term debt		$	49,191		$	60,849
Accounts payable			45,865			50,126
Other current liabilities			92,120			108,712
Total current liabilities			187,176			219,687
Long-term debt			94,118			94,082
Pensions and other employee benefits			122,158			120,494
Deferred tax liabilities			36,318			36,491
Other noncurrent liabilities			8,996			9,931
Equity			411,000			395,125
Total			859,766			875,810

 

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Mine Safety Appliances Company

Segment Information (Unaudited)

(In thousands)

 

		Three Months Ended June 30								Six Months Ended June 30
		2009				2008				2009			2008
Net sales
North America		$	112,358			$	148,682			$	223,079		$	295,324
Europe			55,834				76,853				112,751			137,258
International			59,040				67,627				109,577			126,924
Total			227,232				293,162				445,407			559,506
Net income attributable to Mine Safety Appliances Company
North America		$	10,912			$	11,612			$	14,636		$	26,194
Europe			428				4,810				2,497			5,498
International			1,468				3,556				2,083			7,122
Reconciling			(350	)			(24	)			463			(2,833	)
Total			12,458				19,954				19,679			35,981

 

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