UNITED STATES

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, 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)		(Commission File Number)		(IRS Employer Identification Number)
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 July 28, 2011, the Company issued a press release announcing its financial results for the quarter ended June 30, 2011. A copy of the press release is furnished herewith as Exhibit 99.1 to this report.

 

Item 9.01

Financial Statements and Exhibits

 

(d)

Exhibits

 

99.1		Mine Safety Appliances Company Press Release dated July 28, 2011, announcing financial results for the quarter ended June 30, 2011.

 

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SIGNATURE

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 hereunto duly authorized.

 

Date: July 28, 2011

 

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EXHIBIT INDEX

 

Exhibit No.		Description
99.1		Mine Safety Appliances Company Press Release dated July 28, 2011, announcing financial results for the quarter ended June 30, 2011.

 

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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 Record Quarterly Sales and Strong Second Quarter Earnings

• Quarterly Sales Increase 24% to $295 million

• Net Income Increases 66% to $20 million

• EPS Increases to $0.53 per basic share

PITTSBURGH, July 28, 2011 – MSA (NYSE: MSA) today announced that net sales for the second quarter of 2011 were a record $295 million compared with $237 million for the second quarter of 2010, an increase of $58 million, or 24 percent. Net income attributable to MSA for the second quarter 2011 was $20 million, or 53 cents per basic share, an increase of $8 million, or 66 percent, compared with $12 million, or 33 cents per basic share, for the same period last year. Excluding after-tax restructuring charges of $1 million, net income attributable to MSA was a second quarter record of $21 million or $0.57 per basic share.

“We continued to see solid growth in our core product groups in both developed and emerging markets in the second quarter,” said William M. Lambert, MSA President and CEO. “Our performance in the second quarter provides evidence that reinforces our belief in our strategic direction,” he added.

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Second quarter sales in the company’s North American segment increased $21 million, or 18 percent, versus the same period of 2010. Organic sales increased $7 million, or 6 percent, while the company’s recent acquisition of General Monitors increased sales by $14 million in the quarter. Organic sales increased $2 million in both gas detection and fall protection products on higher shipments to core industrial markets. Shipments of ballistic helmets to the military were $6 million higher in the quarter. Partially offsetting these increases was a decline of $3 million in sales of self-contained breathing apparatus (SCBA) to the fire service market.

Sales in the company’s European segment increased $18 million, or 33 percent, when compared to the second quarter of 2010. Currency translation effects increased second quarter European segment sales, when stated in U.S. dollars, by $7 million, primarily related to a strengthening of the euro. Local currency organic sales increased $3 million while the acquisition of General Monitors increased sales by $8 million in the quarter. Local currency organic sales of gas detection products were up $5 million on higher product shipments to core industrial markets. This increase was partially offset by weakness in fire service markets and a decline in sales of ballistic helmets to military markets.

Sales in MSA’s International segment increased $18 million, or 28 percent, in the second quarter of 2011. On a local currency basis, sales increased $11 million reflecting strong product demand in Latin America and Asia, primarily in industrial markets across a broad group of product lines. Currency translation effects increased second quarter International segment sales, when stated in U.S. dollars, by $7 million, primarily related to a strengthening of the Australian dollar, Brazilian real, and South African rand.

 

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Net income in MSA’s North American segment increased $3 million in the second quarter of 2011 when compared to the same period of 2010. The North American segment income includes net income related to General Monitors, and higher organic sales and gross profits, partially offset by an increase in operating expenses associated with the previously discussed sales growth.

MSA’s European segment earned income of $2 million in the quarter, compared to a loss of $2 million in the second quarter of 2010. Local currency net income increased $4 million, including net income of General Monitors, higher organic sales and gross profit, and reduced operating expenses.

Net income in MSA’s International segment was $3 million higher in the second quarter of 2011. This increase was primarily related to higher sales in China and Latin America and improved gross profits across the segment. Currency translation effects increased current quarter International segment net income, when stated in U.S. dollars, by approximately $ 1 million.

“We remain committed to staying the course and executing our strategy,“ Mr. Lambert said. “I am confident that our strategy to grow core product revenues around the globe and develop new and innovative products that exceed customer expectations, while diligently

 

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managing operating and manufacturing costs, provides evidence that our strategy implementation is effective and creating 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. MSA has annual sales of approximately $1 billion, manufacturing operations on six continents, 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.

 

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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
		2011				2010				2011				2010
Net sales		$	294,733			$	237,173			$	571,232			$	449,607
Other income, net			1,159				15				1,955				1,320
			295,892				237,188				573,187				450,927
Costs and expenses
Cost of products sold			175,724				146,947				341,826				276,928
Selling, general and administrative			75,716				60,912				148,761				122,820
Research and development			9,440				8,282				19,983				16,018
Restructuring and other charges			2,027				2,618				5,114				9,427
Interest			3,788				1,685				7,225				3,225
Currency exchange (gains) losses			(111	)			(1,477	)			555				(3,635	)
			266,584				218,967				523,464				424,783
Income before income taxes			29,308				18,221				49,723				26,144
Provision for income taxes			9,827				6,287				16,746				9,090
Net income			19,481				11,934				32,977				17,054
Net loss (income) attributable to noncontrolling interests			111				(107	)			(76	)			(321	)
Net income attributable to Mine Safety Appliances Company			19,592				11,827				32,901				16,733
Earnings per share attributable to Mine Safety Appliances Company common shareholders
Basic		$	0.53			$	0.33			$	0.90			$	0.47
Diluted		$	0.53			$	0.32			$	0.88			$	0.46
Dividends per common share		$	0.26			$	0.25			$	0.51			$	0.49
Basic shares outstanding			36,217				35,839				36,191				35,768
Diluted shares outstanding			36,854				36,481				36,825				36,352

 

 

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Mine Safety Appliances Company

Consolidated Condensed Balance Sheet (Unaudited)

(In thousands)

 

		June 30, 2011				December 31, 2010
Current assets
Cash and cash equivalents		$	63,776			$	59,760
Trade receivables, net			215,227				198,551
Inventories			165,979				150,581
Other current assets			62,242				68,497
Total current assets			507,224				477,389
Property, net			159,382				156,789
Prepaid pension cost			127,069				121,631
Goodwill			267,803				263,089
Other non-current assets			190,317				178,290
Total			1,251,795				1,197,188
Current liabilities
Notes payable and current portion of long-term debt		$	10,203			$	10,163
Accounts payable			58,533				58,460
Other current liabilities			113,550				113,118
Total current liabilities			182,286				181,741
Long-term debt			382,076				367,094
Pensions and other employee benefits			134,024				126,479
Deferred tax liabilities			48,682				49,177
Other non-current liabilities			16,874				16,647
Equity			487,853				456,050
Total			1,251,795				1,197,188

 

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Mine Safety Appliances Company

Segment Information (Unaudited)

(In thousands)

 

		Three Months Ended June 30								Six Months Ended June 30
		2011				2010				2011				2010
Net sales
North America		$	137,691			$	116,774			$	268,607			$	215,888
Europe			74,868				56,406				139,707				113,030
International			82,174				63,993				162,918				120,689
Total			294,733				237,173				571,232				449,607
Net income (loss)
North America		$	16,111			$	12,928			$	25,934			$	18,512
Europe			2,094				(2,498	)			3,681				(5,763	)
International			6,466				3,549				13,843				7,927
Reconciling			(5,079	)			(2,152	)			(10,557	)			(3,943	)
Total			19,592				11,827				32,901				16,733

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