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): February 28, 2011

 

 

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.)
MSA Corporate Center 1000 Cranberry Woods Drive Cranberry Township, Pennsylvania				16066
(Address of principal executive offices)				(Zip Code)

Registrant’s telephone number, including area code: 724-776-8600

 

 

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 February 28, 2011, the Company issued a press release announcing its financial results for the quarter and year ended December 31, 2010. 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 February 28, 2011, announcing financial results for the quarter and year ended December 31, 2010.

 

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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: February 28, 2011

 

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EXHIBIT INDEX

 

Exhibit Number		Description
99.1		Mine Safety Appliances Company Press Release dated February 28, 2011, announcing financial results for the quarter and year ended December 31, 2010.

 

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Exhibit 99.1

 

FROM:		MSA (Mine Safety Appliances Company)
		Ticker: MSA (NYSE)
		Contact: Mark Deasy – (724) 741-8570

FOR IMMEDIATE RELEASE

MSA Announces Strong Fourth Quarter and Year-End Results

Quarterly Organic Sales Increase 14 Percent on Continued Strengthening of Industrial Safety Market

PITTSBURGH, February 28, 2011 – 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.

 

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“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

 

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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.

 

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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.

 

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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.

 

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Mine Safety Appliances Company

Consolidated Condensed Statement of Income (Unaudited)

(In thousands, except earnings per share)

 

		Three Months Ended December 31								Twelve Months Ended December 31
		2010				2009				2010				2009
Net sales		$	285,005			$	236,098			$	976,631			$	909,991
Other income			3,678				4,179				6,037				5,860
			288,683				240,277				982,668				915,851
Cost of products sold			178,264				150,797				606,532				573,266
Selling, general and administrative			78,935				60,720				262,940				230,894
Research and development			8,828				7,376				32,784				28,781
Restructuring and other charges			2,612				1,477				14,121				11,378
Interest			3,796				1,638				8,707				7,080
Currency exchange losses (gains)			325				(583	)			235				(888	)
			272,760				221,425				925,319				850,511
Income before income taxes			15,923				18,852				57,349				65,340
Provision for income taxes			3,903				6,249				18,290				22,003
Net income			12,020				12,603				39,059				43,337
Net (income) loss attributable to noncontrolling interests			(252	)			59				(955	)			(42	)
Net income attributable to Mine Safety Appliances Company			11,768				12,662				38,104				43,295
Basic earnings per share		$	.33			$	.35			$	1.06			$	1.21
Diluted earnings per share		$	.32			$	.35			$	1.05			$	1.21
Dividends per common share		$	.25			$	.24			$	.99			$	.96
Basic shares outstanding			35,685				36,060				35,880				35,668
Diluted shares outstanding			36,587				35,932				36,422				35,879

 

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Mine Safety Appliances Company

Consolidated Condensed Balance Sheet (Unaudited)

(In thousands)

 

		December 31, 2010				December 31, 2009
Current assets
Cash and cash equivalents		$	59,760			$	61,983
Trade receivables, net			198,551				173,355
Inventories			150,581				123,944
Other current assets			68,497				74,743
Total current assets			477,389				434,025
Property, net			156,789				144,575
Prepaid pension cost			121,631				105,812
Goodwill			263,089				84,727
Other non-current assets			178,290				106,089
Total			1,197,188				875,228
Current liabilities
Notes payable and current portion of long-term debt		$	10,163			$	16,326
Accounts payable			58,460				43,487
Other current liabilities			113,118				108,637
Total current liabilities			181,741				168,450
Long-term debt			367,094				82,114
Pensions and other employee benefits			126,479				125,387
Deferred tax liabilities			49,177				44,800
Other non-current liabilities			16,647				15,077
Equity			456,050				439,400
Total			1,197,188				875,228

 

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Mine Safety Appliances Company

Segment Information (Unaudited)

(In thousands)

 

		Three Months Ended December 31								Twelve Months Ended December 31
		2010				2009				2010				2009
Net sales
North America		$	136,209			$	104,442			$	464,012			$	434,575
Europe			76,538				71,249				251,107				257,860
International			72,258				60,407				261,512				217,556
Total			285,005				236,098				976,631				909,991
Net income (loss)
North America		$	9,828			$	9,591			$	34,560			$	34,994
Europe			(358	)			194				(7,605	)			2,349
International			3,715				2,047				13,981				5,078
Reconciling			(1,417	)			830				(2,832	)			874
Total			11,768				12,662				38,104				43,295

 

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