MSA Announces Third Quarter Results

                     MSA Announces Third Quarter Results

PR Newswire

PITTSBURGH, Oct. 24, 2012

PITTSBURGH, Oct. 24, 2012 /PRNewswire/ -- MSA (NYSE: MSA) today announced that
net sales for the third quarter of 2012 were $287 million, down $12 million
when compared to the third quarter of 2011.  Excluding the effect of weakening
currencies and the divestiture of the company's ballistic vest and North
American ballistic helmet businesses, sales increased $14 million, or 5
percent.  Net income for the third quarter 2012 was $19 million, or 52 cents
per basic share, a decrease of less than $1 million when compared with the
same quarter last year. 

"Despite the slow-down we are seeing in certain geographic markets, the
quarterly results we achieved from our primary areas of strategic focus in
core product groups and emerging markets are providing a degree of
encouragement," said William M. Lambert, MSA President and CEO.  "Excluding
the impact of weakening foreign currencies, our quarterly revenue from our
global core product groups increased 7 percent, with core product group sales
to emerging markets up 18 percent," Mr. Lambert added. 

MSA's five core product groups include industrial head protection, fall
protection devices, portable gas detection instruments, fixed gas and flame
detection systems, and self-contained breathing apparatus (SCBA).  These
products now represent 64 percent of MSA's global business.

"Driving demand for these products through innovation and exceptional customer
support remains a critical element of our ongoing strategy," Mr. Lambert
said.  "In addition to our emphasis on core products, our focus on reducing
manufacturing costs, strengthening product mix and implementing more effective
pricing strategies is providing solid returns."   Mr. Lambert noted that for
the quarter, gross profit margins improved 220 basis points when compared to
the third quarter of 2011. 

Sales in the North American segment decreased $10 million, or 7 percent, in
the current quarter.  The decrease reflects the divestiture of the company's
ballistic vest and North American Advanced Combat Helmet (ACH) businesses
during the fourth quarter of 2011 and the second quarter of 2012,
respectively.  Sales of ballistic vests and ACHs totaled $11 million in the
third quarter of 2011.  Excluding this change, North America segment sales
were flat, with a $4 million improvement in shipments of SCBAs to the fire
service being partially offset by small decreases in other product groups.

Sales in the company's European segment decreased $4 million, or 6 percent,
when compared to the third quarter of 2011, on a weakening euro.  Local
currency sales were up $4 million on improved sales of gas detection products
to industrial markets.  Currency translation effects decreased third quarter
European segment sales, when stated in U.S. dollars, by $8 million.

Sales in MSA's International segment increased $2 million, or 2 percent, when
compared to the third quarter of 2011.  On a local currency basis, sales
increased $9 million reflecting stronger product demand in emerging markets
across Latin America and Africa, primarily in industrial markets across a
broad group of product lines.  Currency translation effects decreased
International segment sales, when stated in U.S. dollars, by $7 million,
primarily related to a weakening of the Australian dollar, Brazilian real and
the South African rand.

Net income in MSA's North American segment was $15 million, a decrease of $4
million when compared to the third quarter of 2011.  The decrease in income
reflects increased product liability related expenses and reduced pension
income, partially offset by improved gross profit margins.  

Net income in MSA's European segment was $2 million.  Local currency net
income increased $0.5 million in the current quarter due primarily to lower
restructuring charges.  The remainder of the improvement reflects lower
selling, general and administrative expenses in Western Europe, offset by
lower gross profit margins.  Currency translation effects decreased current
quarter European segment net income, when stated in U.S. dollars, by $0.4
million, primarily reflecting a weaker euro.

Net income in the International segment was $6 million, a decrease of $0.7
million due primarily to currency translation effects, which reduced current
quarter International segment net income by $0.6 million reflecting a weaker
Australian dollar, Brazilian real and South African rand.

The net loss reported in reconciling items for the third quarter of 2012 was
$4 million compared to a net loss of $7 million in the third quarter of 2011. 
The lower net loss in the third quarter of 2012 was primarily related to lower
currency exchange losses and a tax benefit associated with a non-cash
charitable contribution of land at MSA's Cranberry Woods office park near
Pittsburgh.

"Our strategic focus on developing business from MSA's core product lines
continues to produce favorable results," Mr. Lambert said.  "While we saw an
increase in selling, general and administrative expenses during the quarter,
we continued to see solid improvement in gross profits and other operating
costs.  Although economic uncertainty is tempering some of our optimism going
into the fourth quarter and beyond, it does not affect our determination.  I
believe MSA's business strength and position in the marketplace afford us many
opportunities for continued profitable growth," he concluded. 

About MSA:
Established in 1914, MSA is a global leader in the development, manufacture
and supply of safety products that protect people and facility
infrastructures.  Many MSA products integrate a 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 a broad range of industries, including
the fire service, the oil, gas and petrochemical industry, construction,
mining and utilities, as well as the military.  Principal products include
self-contained breathing apparatus, fixed gas and flame detection systems,
handheld gas detection instruments, head protection products, fall protection
devices and thermal imaging cameras.The company also provides a broad range of
consumer and contractor safety products through a joint venture with MCR
Safety.  These products are marketed and sold under the Safety Works^® brand. 
MSA has annual sales of approximately $1.2 billion, manufacturing operations
in the United States, Europe, Asia and Latin America, and 42 international
locations.  Additional information is available on the company's Web site at
www.MSAsafety.com.  Information on Safety Works products can be found at
www.SafetyWorks.com.

Cautionary Statement Regarding Forward-Looking Statements:
This press release may contain forward-looking statements that involve risks
and uncertainties. The forward-looking statements are not historical facts,
but rather are based on current expectations, estimates, assumptions and
projections about our industry, business, and future financial results.  Our
actual results could differ materially from the results contemplated by these
forward-looking statements due to a number of factors.  These factors include,
but are not limited to, global economic conditions, 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 Websites.

Mine Safety Appliances Company
Condensed Consolidated Statement of Income (Unaudited)
(In thousands, except earnings per share)

                           Three Months Ended        Nine Months Ended
                           September 30,             September 30,
                           2012         2011         2012         2011
Net sales                  $286,567     $ 298,241    $874,790     $ 869,473
Other income, net          169          2,398        8,433        4,353
                           286,736      300,639      883,223      873,826
Costs and expenses
Cost of products sold      164,313      177,353      502,419      519,179
Selling, general and       81,606       78,621       236,591      227,382
administrative
Research and development   10,073       9,663        29,707       29,646
Restructuring and other    —            1,004        —            6,118
charges
Interest                   2,797        3,198        8,860        10,423
Currency exchange losses   617          431          1,845        986
                           259,406      270,270      779,422      793,734
Income before income taxes 27,330       30,369       103,801      80,092
Provision for income taxes 7,680        10,188       31,550       26,934
Net income                 19,650       20,181       72,251       53,158
Net income attributable to (417)        (209)        (1,101)      (285)
noncontrolling interests
Net income attributable to
Mine Safety Appliances     19,233       19,972       71,150       52,873
Company
Earnings per share
attributable to Mine
Safety Appliances Company
common shareholders
Basic                      $       0.52 $       0.54 $       1.93 $       1.44
Diluted                    $       0.51 $       0.54 $       1.90 $       1.42
Dividends per common share $       0.28 $       0.26 $       0.82 $       0.77
Basic shares outstanding   36,633       36,236       36,535       36,206
Diluted shares outstanding 37,055       36,799       37,009       36,817

Mine Safety Appliances Company
Condensed Consolidated Balance Sheet (Unaudited)
(In thousands)

                                          September 30,       December 31,

                                          2012                2011
Current assets
Cash and cash equivalents                 $        74,456     $        59,938
Trade receivables, net                    214,930             192,627
Inventories                               142,825             141,475
Other current assets                      52,783              64,809
         Total current assets             484,994             458,849
Property, net                             146,835             145,763
Prepaid pension cost                      60,398              58,075
Goodwill                                  257,087             259,084
Other noncurrent assets                   198,274             193,281
            Total                         1,147,588           1,115,052
Current liabilities
Notes payable and current portion of      $              726  $          8,263
long-term debt
Accounts payable                          61,233              50,208
Other current liabilities                 120,246             113,299
         Total current liabilities        182,205             171,770
Long-term debt                            304,000             334,046
Pensions and other employee benefits      125,899             124,310
Deferred tax liabilities                  30,398              30,458
Other noncurrent liabilities              14,465              15,057
Equity                                    490,621             439,411
         Total                            1,147,588           1,115,052

Mine Safety Appliances Company
Consolidated Condensed Statement of Cash Flows (Unaudited)
(In thousands)

                                       Nine Months Ended

                                       September 30,
                                       2012           2011
Net income                             $      72,251  $    53,158
Depreciation and amortization          24,057         24,886
Change in working capital              2,763          (15,448)
Other operating                        (10,037)       (24,190)
         Cash from operations          89,034         38,406
Capital expenditures                   (24,949)       (21,330)
Property disposals and other investing 16,801         3,478
         Cash from investing           (8,148)        (17,852)
Change in debt                         (37,551)       8,385
Cash dividends paid                    (30,261)       (28,210)
Other financing                        1,373          (125)
         Cash from financing           (66,439)       (19,950)
Exchange rate changes                  71             (1,542)
Increase (decrease) in cash            14,518         (938)

Mine Safety Appliances Company
Segment Information (Unaudited)
(In thousands)

                      Three Months Ended            Nine Months Ended

                      September 30,                 September 30,
                      2012           2011           2012          2011
Net sales
         North        $    133,944   $    143,547   $    416,728  $    412,154
America
         Europe       67,660         71,696         207,450       211,403
                      84,963         82,998         250,612       245,916
International
            Total     286,567        298,241        874,790       869,473
Net income (loss)
         North        $      15,100  $      18,839  $             $    
America                                              51,636        44,773
         Europe       2,039          1,859          9,794         5,540
                      6,016          6,666          17,900        20,509
International
         Reconciling  (3,922)        (7,392)        (8,180)       (17,949)
            Total     19,233         19,972         71,150        52,873

SOURCE MSA

Website: http://www.msanet.com
Contact: Mark Deasy, +1-724-741-8570