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MINE SAFETY APPLIANCES REPORTS SECOND QUARTER EARNINGS

 PITTSBURGH, July 21 /PRNewswire/ -- John T. Ryan III, president, chairman and chief executive officer of Mine Safety Appliances Company (NASDAQ: MNES) (MSA), announced today that consolidated sales for the second quarter of 1993 were $107,840,000 compared to $128,559,000 for the second quarter of 1992.
 Sales for the six months ended June 30, 1993, were $212,703,000 compared to $256,347,000 for the same period in 1992.
 Net income from continuing operations for the 1993 second quarter was $2,963,000 or 48 cents per share compared to 1992 second quarter of $6,182,000 or 98 cents per share. Consolidated net income in the second quarter of 1992, including losses on discontinued operations, was $5,108,000 or 82 cents per share.
 Net income from continuing operations for the six months ended June 30, 1993, was $5,479,000 or 89 cents per share compared to $10,623,000 or $1.69 per share in 1992. Consolidated net income for the six months ended June 30, 1992, including losses on discontinued operations and restated for the cumulative effect of changes in accounting principles, was a loss of $298,000 or 6 cents per share.
 The sales decline is largely the result of decreased shipments of gas masks to the U.S. military which peaked in the first half of 1992 due to the Middle East conflict. Sales to the U.S. military are expected to continue at lower, more normal levels. Higher margins, due to better cost performance, are providing a partial offset to the fall in such sales. Military sales were also negatively affected by a stoppage in production on one contract due to a difficulty on a subcontractor-provided component. Sales in the first half of 1992 also included higher than normal sales of specialty chemicals related to non- recurring orders, particularly from a European customer.
 "U.S. commercial safety and instrument product sales are essentially flat in a stagnant industrial economy. While overall sales growth was minimal, the company achieved considerable progress in portable instruments," Ryan said. "Sales of breathing apparatus, however, have been reduced due to the conversion from a dealer-loading system, an effect which we hope is temporary. Chemical sales for the near future show good prospects."
 The company's sales in Europe are also lower as a result of serious recessionary conditions, especially harsh in Germany, and unfavorable currency exchange rates. In addition, 1992 first half sales included a large non-recurring contract. Further economic decline is forecasted in Europe, particularly in Germany where the company has its largest international operations. International sales in the rest of the world have grown modestly.
 Profits from continuing operations have declined on lower sales in the U.S. and Europe due to the factors described above. While 1993 U.S. operating earnings fell from those of 1992 due to the unusual 1992 business noted above, some progress was made in comparison to the results of 1991, in spite of lower military shipments. However, European results show a consistently downward trend. German results were affected by the phasing out of government incentives to companies located in Berlin. Results for the second quarter of 1992 included provisions for costs associated with consolidation of manufacturing facilities in the U.S. along with recognition of recovery of costs on a major government contract.
 Restructuring of U.S. operations was initiated early in 1992 and many benefits are now being realized, with some moderate future changes in progress. The company's cost efforts have contained U.S. selling, general and administrative expense levels to no increase over two years. Restructuring of international operations, particularly in Germany where a factory and a major warehouse are being closed, was initiated late in 1992, and more actions are in progress, including work-week reductions. However, local legal and industrial relations conditions prolong the time required to accomplish these changes, and most of the benefits are not expected until after year-end.
 There are some opportunities in the second half of 1993 for the company to improve U.S. results with a combination of cost control, slowly growing commercial sales and the restarting of production on a military contract. Success in this, though, will depend on industrial activity in the U.S. However, the outlook for Germany in particular and Europe in general is poor and may get worse. "While current actions aim at making our European operations more successful at an expected lower level of industrial activity, the lag time in effecting these measures is expected to hurt MSA's results in at least the third quarter," Ryan said.
 "We previously announced the discontinuance of the metallized paper venture in Germany and the adoption of changes in accounting principles relating to post-retirement medical and other post-employment benefits and income taxes. The financial effect of these changes is set out in the restated 1992 results," Ryan explained.
 The results from operations for the three-month and six-month periods ended June 30 are as follows.
 MINE SAFETY APPLIANCES COMPANY
 (Note: Amounts in thousands, except earnings per share
 and shares outstanding)
 Period Ended Three Months Six Months
 June 30 1993 1992 1993 1992
 Continuing operations
 Net sales $107,840 $128,559 $212,703 $256,347
 Costs of products sold 67,571 83,610 134,661 167,946
 Selling and administrative
 costs 30,255 31,681 60,196 64,231
 Facilities consolidation -- 2,300 -- 2,600
 Contract costs recovery -- (2,800) -- (2,800)
 Income before income taxes 5,098 10,310 9,763 17,954
 Taxes on income 2,135 4,128 4,284 7,331
 Income from continuing
 operations 2,963 6,182 5,479 10,623
 Losses from discontinued
 operations -- (1,074) -- (1,957)
 Cumulative effect to
 Jan. 1, 1992, of changes in
 accounting principles -- -- -- (8,964)
 Net income (loss) 2,963 5,108 5,479 (298)
 Earnings per share
 Continuing operations $.48 $.98 $.89 $1.69
 Discontinued operations -- $(.16) -- $(.31)
 Cumulative effect to
 Jan. 1, 1992, of changes in
 accounting principles -- -- -- $(1.44)
 Net income (loss) $.48 $.82 $.89 $(.06)
 Average number of common
 shares outstanding -- -- 6,096,385 6,268,929
 -0- 7/21/93
 /CONTACT: Thomas D. Cunningham of Ketchum Public Relations, 412-456-3866, for MSA/
 (MNES)


CO: Mine Safety Appliances Company ST: Pennsylvania IN: MNG SU: ERN

KC-xx -- PG008 -- 3980 07/21/93 13:20 EDT
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Date:Jul 21, 1993
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