Mine Safety Appliances Company (MSA, Financial) filed Quarterly Report for the period ended 2010-06-30.
Mine Safety Appliances Company has a market cap of $912.7 million; its shares were traded at around $25.28 with a P/E ratio of 19.1 and P/S ratio of 1. The dividend yield of Mine Safety Appliances Company stocks is 4%. Mine Safety Appliances Company had an annual average earning growth of 5.6% over the past 10 years.MSA is in the portfolios of Private Capital of Private Capital Management, Columbia Wanger of Columbia Wanger Asset Management, Chuck Royce of Royce& Associates, Pioneer Investments, Jim Simons of Renaissance Technologies LLC.
Net sales for the European segment were $113.0 million for the six months ended June 30, 2010, a decrease of $8.7 million, or 7%, compared to $121.7 million for the same period in 2009. Local currency sales in Europe decreased $10.1 million for the six months ended June 30, 2010. In Germany, local currency sales were $1.0 million lower for the six months ended June 30, 2010, reflecting a $2.8 million decrease in shipments of gas masks and ballistic helmet shipments to the military, partially offset by a $1.4 increase in SCBA shipments. Local currency sales in other European segment companies were down $9.1 million for the first half of 2010, reflecting the continuing effects of the recession in most markets. Translation effects of stronger non-euro currencies in the first half of 2010 increased European segment sales, when stated in U.S. dollars, by approximately $1.4 million.
Selling, general and administrative expenses. Selling, general and administrative expenses were $122.8 million during the six months ended June 30, 2010, an increase of $9.9 million, or 9.0%, compared to $112.9 million during the same period in 2009. Selling, general and administrative expenses were 27.3% of net sales for the six months ended June 30, 2010, compared to 25.3% of net sales for the same period in 2009. In the first half of 2010, selling, general and administrative expenses in the North American segment were $2.9 million, or 6%, higher than in the same period last year. The increase in North American segment selling, general and administrative expenses was primarily related to legal fees and other professional services associated with our ongoing insurance coverage litigation and higher selling expenses. Local currency selling, general and administrative expenses in the European segment were up $0.5 million. Local currency selling, general and administrative expenses in the International segment were up $2.8 million, primarily to support increased sales activity. Currency exchange increased selling, general and administrative expenses for the six months ended June 30, 2010, when stated in U.S. dollars, by $3.7 million, primarily related to the strengthening of the Australian dollar, South African rand and Brazilian real.
During the six months ended June 30, 2009, we recorded charges of $9.1 million ($5.8 million after tax). North American segment charges of $8.3 million related primarily to a voluntary retirement incentive program (North American VRIP). During the first half of 2009, we recorded North American VRIP non-cash special termination benefits expense of $6.7 million. The remaining $1.6 million of North American segment charges related to layoffs and stay bonuses and other costs associated with our ongoing initiative to transfer certain production activities. International segment charges of $0.8 million were primarily for severance costs related to staff reductions in Brazil, Australia and South Africa.
Operating activities used cash of $12.0 million during the six months ended June 30, 2010, compared to providing cash of $54.8 million during the same period in 2009. Significantly lower operating cash flow in the first half of 2010 reflects a $47.4 million unfavorable change associated with working capital and a $19.4 million decrease in operating cash flow before changes in working capital. Lower operating cash flow before changes in working capital was primarily due to lower net income and less favorable adjustments for non-cash items. Trade receivables were $182.2 million at June 30, 2010, compared to $173.4 million at December 31, 2009. LIFO inventories were $130.4 million at June 30, 2010, compared to $123.9 million at December 31, 2009. The $8.8 million increase in trade receivables reflects a $16.0 million increase in local currency balances, primarily in North America, partially offset by a $7.2 million reduction, when stated in U.S. dollars, due to currency translation effects. The increase in trade receivables occurred primarily in North America and reflects higher sales. The $6.5 million increase in inventories reflects a $15.8 million increase in local currency inventories, partially offset by a $9.3 million reduction, when stated by U.S. dollars, due to currency translation effects. Increased inventory levels are primarily in anticipation of higher customer demand.
Financing activities provided cash of $20.5 million during the six months ended June 30, 2010, compared to using $29.9 million during the same period in 2009. The change was primarily related to borrowing on our short-term line of credit. During the first half of 2010, we borrowed $38.4 million, compared to making payments of $12.1 million for the same period last year. We paid cash dividends of $17.7 million and $17.2 million in the first half of 2010 and 2009, respectively.
Read the The complete Report
Mine Safety Appliances Company has a market cap of $912.7 million; its shares were traded at around $25.28 with a P/E ratio of 19.1 and P/S ratio of 1. The dividend yield of Mine Safety Appliances Company stocks is 4%. Mine Safety Appliances Company had an annual average earning growth of 5.6% over the past 10 years.MSA is in the portfolios of Private Capital of Private Capital Management, Columbia Wanger of Columbia Wanger Asset Management, Chuck Royce of Royce& Associates, Pioneer Investments, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
Net sales for the European segment were $56.4 million for the second quarter of 2010, a decrease of $4.9 million, or 8%, compared to $61.3 million for the second quarter of 2009. Local currency sales in Europe decreased $1.7 million during the second quarter of 2010. In France, local currency sales were $2.2 million higher in the current quarter, reflecting improved shipments of ballistic protection and fire helmets to the law enforcement and fire service markets. Local currency sales in other European segment markets were down $3.9 million in the current quarter, reflecting the continuing effects of the recession. The unfavorable translation effects of a weaker euro in the current quarter decreased European segment sales, when stated in U.S. dollars, by approximately $3.2 million.Net sales for the European segment were $113.0 million for the six months ended June 30, 2010, a decrease of $8.7 million, or 7%, compared to $121.7 million for the same period in 2009. Local currency sales in Europe decreased $10.1 million for the six months ended June 30, 2010. In Germany, local currency sales were $1.0 million lower for the six months ended June 30, 2010, reflecting a $2.8 million decrease in shipments of gas masks and ballistic helmet shipments to the military, partially offset by a $1.4 increase in SCBA shipments. Local currency sales in other European segment companies were down $9.1 million for the first half of 2010, reflecting the continuing effects of the recession in most markets. Translation effects of stronger non-euro currencies in the first half of 2010 increased European segment sales, when stated in U.S. dollars, by approximately $1.4 million.
Selling, general and administrative expenses. Selling, general and administrative expenses were $122.8 million during the six months ended June 30, 2010, an increase of $9.9 million, or 9.0%, compared to $112.9 million during the same period in 2009. Selling, general and administrative expenses were 27.3% of net sales for the six months ended June 30, 2010, compared to 25.3% of net sales for the same period in 2009. In the first half of 2010, selling, general and administrative expenses in the North American segment were $2.9 million, or 6%, higher than in the same period last year. The increase in North American segment selling, general and administrative expenses was primarily related to legal fees and other professional services associated with our ongoing insurance coverage litigation and higher selling expenses. Local currency selling, general and administrative expenses in the European segment were up $0.5 million. Local currency selling, general and administrative expenses in the International segment were up $2.8 million, primarily to support increased sales activity. Currency exchange increased selling, general and administrative expenses for the six months ended June 30, 2010, when stated in U.S. dollars, by $3.7 million, primarily related to the strengthening of the Australian dollar, South African rand and Brazilian real.
During the six months ended June 30, 2009, we recorded charges of $9.1 million ($5.8 million after tax). North American segment charges of $8.3 million related primarily to a voluntary retirement incentive program (North American VRIP). During the first half of 2009, we recorded North American VRIP non-cash special termination benefits expense of $6.7 million. The remaining $1.6 million of North American segment charges related to layoffs and stay bonuses and other costs associated with our ongoing initiative to transfer certain production activities. International segment charges of $0.8 million were primarily for severance costs related to staff reductions in Brazil, Australia and South Africa.
Operating activities used cash of $12.0 million during the six months ended June 30, 2010, compared to providing cash of $54.8 million during the same period in 2009. Significantly lower operating cash flow in the first half of 2010 reflects a $47.4 million unfavorable change associated with working capital and a $19.4 million decrease in operating cash flow before changes in working capital. Lower operating cash flow before changes in working capital was primarily due to lower net income and less favorable adjustments for non-cash items. Trade receivables were $182.2 million at June 30, 2010, compared to $173.4 million at December 31, 2009. LIFO inventories were $130.4 million at June 30, 2010, compared to $123.9 million at December 31, 2009. The $8.8 million increase in trade receivables reflects a $16.0 million increase in local currency balances, primarily in North America, partially offset by a $7.2 million reduction, when stated in U.S. dollars, due to currency translation effects. The increase in trade receivables occurred primarily in North America and reflects higher sales. The $6.5 million increase in inventories reflects a $15.8 million increase in local currency inventories, partially offset by a $9.3 million reduction, when stated by U.S. dollars, due to currency translation effects. Increased inventory levels are primarily in anticipation of higher customer demand.
Financing activities provided cash of $20.5 million during the six months ended June 30, 2010, compared to using $29.9 million during the same period in 2009. The change was primarily related to borrowing on our short-term line of credit. During the first half of 2010, we borrowed $38.4 million, compared to making payments of $12.1 million for the same period last year. We paid cash dividends of $17.7 million and $17.2 million in the first half of 2010 and 2009, respectively.
Read the The complete Report
