Mine Safety Sinks on Miss

Shares drop 11% after a second-quarter earnings decline.
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Mine Safety Appliances

(MSA) - Get Report

fell 11% Tuesday after second-quarter earnings dropped 16.2% from a year ago.

The Pittsburgh-based company earned $16.1 million, or 43 cents a share, in the quarter, compared with $19.2 million, or 52 cents a share, a year ago. Analysts surveyed by Thomson First Call were expecting earnings of 55 cents a share in the most recent quarter.

Total revenue in the second quarter slid 0.5% to $220.1 million as against analysts' expectation of $224.5 million.

The second-quarter sales reflect strong growth in MSA's International and European business segments as well as in North American sales to commercial markets, the company said. These sales gains were offset by a $19.4 million decrease in U.S. government sales.

North American segment sales fell 10.6% to $121.4 million as shipments of advanced combat helmets and related communication equipment were down $16 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 14.5% to $46.9 million, helped by the January acquisition of Select PPE, a supplier of safety equipment and solutions to the mining industry in South Africa.

Sales in Europe segment rose 16.1% to $50.3 million on strong shipments of self-contained breathing apparatus, fire helmets and disposable respirators.

Shares slipped $4.27 to $35.47.

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