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Mine Safety Earnings Slip

TSC and IRIS Staff

Mine Safety Appliances (MSA) first-quarter earnings fell from a year ago, prompting a 6% selloff Wednesday.

The Pittsburgh-based company earned $15.7 million, or 42 cents a share, compared with $21.4 million, or 57 cents a share, a year ago. The earnings include a restructuring charge of $3.7 million associated with the project outlook in North America and stock options expense of $1.1 million. Analysts surveyed by Thomson First Call were expecting earnings of 55 cents a share in the most recent quarter.

Total revenue increased 0.3% to $228.6 million as against analysts' expectation of $237.7 million.

The first-quarter sales reflect strong local currency growth in MSA's International and European business segments as well as in North American sales to commercial markets.

North American segment sales fell 6.2% to $136.5 million as shipments of advanced combat helmets and related communication equipment were down $12.3 million due to the completion of certain government contracts and to the U.S. government's decision to split ACH contracts evenly among three producers over a 12-month period.

Sales in international segment rose 20.5% to $44.1 million, helped by the January acquisition of Select PPE, an established supplier of safety equipment and solutions to the mining industry in South Africa. Sales in Europe segment rose 4% to $47.7 million.

Shares fell $2.62 to $40.78.