Mine Safety Appliances Company (MSA, Financial) filed Quarterly Report for the period ended 2009-06-30.
MINE SAFETY APPLIANCES manufactures and sells products designed to protect the safety and health of workers throughout the world. Principal products include respiratory protective equipment that is air-purifying air-supplied and self-contained in design. Mine Safety Appliances Company has a market cap of $992.3 million; its shares were traded at around $27.61 with a P/E ratio of 16.2 and P/S ratio of 0.9. The dividend yield of Mine Safety Appliances Company stocks is 3.5%. Mine Safety Appliances Company had an annual average earning growth of 11.6% over the past 10 years. GuruFocus rated Mine Safety Appliances Company the business predictability rank of 4-star.
Selling, general and administrative expenses. Selling, general and administrative expenses were $56.0 million during the second quarter of 2009, a decrease of $12.9 million, or 19%, compared to $68.9 million in the second quarter of 2008. Selling, general and administrative expenses were 24.7% of net sales in the second quarter of 2009 compared to 23.5% of net sales in the second quarter of 2008. Second quarter selling, general and administrative expenses in the North American segment were $21.1 million, a decrease of $7.1 million, or 25%, from $28.2 million in the second quarter of 2008. The decrease was a direct result of cost-savings initiatives that we have taken in response to the effects of the economic recession. Local currency selling, general and administrative expenses in the European and International segments were $0.7 million lower, with expense reductions in the International segment being partially offset by a modest increase in the European segment. Currency exchange effects reduced second quarter 2009 administrative expenses for the European and International segments, when stated in U.S. dollars, by $4.9 million, primarily related to a weaker euro, Australian dollar, and Brazilian real.
Net sales for the European segment were $112.8 million for the six months ended June 30, 2009, a decrease of $24.5 million, or 18%, compared to $137.3 million for the same period in 2008. Local currency sales in Europe decreased $1.6 million for the six months ended June 30, 2009. The decrease in local currency sales reflects higher sales in Eastern Europe, substantially offset by lower sales in France and Germany, where shipments of helmets and gas masks to fire service and law enforcement markets were down $2.7 million and $1.8 million, respectively. Unfavorable translation effects of weaker European currencies, particularly the euro, in the current period decreased European segment sales, when stated in U.S. dollars, by approximately $22.9 million.
Net sales for the International segment were $109.6 million for the six months ended June 30, 2009, a decrease of $17.3 million, or 14%, compared to $126.9 million in the same period in 2008. Local currency sales of the International segment improved $2.7 million during the current period. In China, local currency sales increased $10.2 million, reflecting strong shipments of SCBAs to the Hong Kong Fire Service, as well as a continued focus on growing our business in the region. Local currency sales in Australia and Latin America were down $5.9 million and $4.8 million, respectively, primarily due to the economic recession. Currency translation effects reduced International segment sales, when stated in U.S. dollars, by $20.0 million, primarily related to a weakening of the Australian dollar and the Brazilian real.
Selling, general and administrative expenses. Selling, general and administrative expenses were $112.9 million during the six months ended June 30, 2009, a decrease of $22.1 million, or 16%, compared to $135.0 million in the same period in 2008. Selling, general and administrative expenses were 25.3% of net sales in the first half of 2009 compared to 24.1% of net sales in the same period last year. First half selling, general and administrative expenses in the North American segment were $45.4 million, a decrease of $11.2 million, or 20%, from $56.6 million in the same period last year. The decrease was a direct result of cost-savings initiatives that we have taken in response to the effects of the economic recession. Local currency selling, general and administrative expenses in the European and International segments were $0.8 million lower in the current period. Currency exchange effects reduced European and International segment administrative expenses for the six months ended June 30, 2009, when stated in U.S. dollars, by $10.5 million, primarily related to a weaker euro, Australian dollar, and Brazilian real.
previously-discussed decrease in net income. Trade receivables were $174.0 million at June 30, 2009 and $198.6 million at December 31, 2008. LIFO inventories were $145.3 million at June 30, 2009 compared to $159.4 million at December 31, 2008. The $24.6 million decrease in trade receivables reflects a $29.0 million decrease in local currency balances, primarily due to lower sales, partially offset by a $4.4 million increase due to currency translation effects. The $14.1 million decrease in inventories reflects a $21.1 million decrease in local currency inventories, partially offset by a $7.0 million increase due to currency translation effects. The $9.5 million local currency decrease in income taxes receivable, prepaids and other current assets was primarily related to a local currency reduction of $9.2 million in income taxes receivable. The increase in other non-current assets of $14.6 million was due primarily to an increase in receivables due from insurance carriers.
Read the The complete ReportMSA is in the portfolios of Bruce Sherman of Private Capital Management.
MINE SAFETY APPLIANCES manufactures and sells products designed to protect the safety and health of workers throughout the world. Principal products include respiratory protective equipment that is air-purifying air-supplied and self-contained in design. Mine Safety Appliances Company has a market cap of $992.3 million; its shares were traded at around $27.61 with a P/E ratio of 16.2 and P/S ratio of 0.9. The dividend yield of Mine Safety Appliances Company stocks is 3.5%. Mine Safety Appliances Company had an annual average earning growth of 11.6% over the past 10 years. GuruFocus rated Mine Safety Appliances Company the business predictability rank of 4-star.
Highlight of Business Operations:
Net sales for the European segment were $55.8 million for the second quarter of 2009, a decrease of $21.1 million, or 27%, compared to $76.9 million for the second quarter of 2008. Local currency sales in Europe decreased $8.8 million during the second quarter of 2009. In France, local currency sales of fire helmets and ballistic helmets were down $2.8 million and $1.4 million, respectively, on lower shipments to military and law enforcement customers. In Germany, local currency sales of gas masks were down $3.1 million, on lower shipments to the military. Local currency sales in Eastern Europe were flat quarter-to-quarter. Unfavorable translation effects of weaker European currencies, particularly the euro, in the current quarter decreased European segment sales, when stated in U.S. dollars, by approximately $12.3 million.Selling, general and administrative expenses. Selling, general and administrative expenses were $56.0 million during the second quarter of 2009, a decrease of $12.9 million, or 19%, compared to $68.9 million in the second quarter of 2008. Selling, general and administrative expenses were 24.7% of net sales in the second quarter of 2009 compared to 23.5% of net sales in the second quarter of 2008. Second quarter selling, general and administrative expenses in the North American segment were $21.1 million, a decrease of $7.1 million, or 25%, from $28.2 million in the second quarter of 2008. The decrease was a direct result of cost-savings initiatives that we have taken in response to the effects of the economic recession. Local currency selling, general and administrative expenses in the European and International segments were $0.7 million lower, with expense reductions in the International segment being partially offset by a modest increase in the European segment. Currency exchange effects reduced second quarter 2009 administrative expenses for the European and International segments, when stated in U.S. dollars, by $4.9 million, primarily related to a weaker euro, Australian dollar, and Brazilian real.
Net sales for the European segment were $112.8 million for the six months ended June 30, 2009, a decrease of $24.5 million, or 18%, compared to $137.3 million for the same period in 2008. Local currency sales in Europe decreased $1.6 million for the six months ended June 30, 2009. The decrease in local currency sales reflects higher sales in Eastern Europe, substantially offset by lower sales in France and Germany, where shipments of helmets and gas masks to fire service and law enforcement markets were down $2.7 million and $1.8 million, respectively. Unfavorable translation effects of weaker European currencies, particularly the euro, in the current period decreased European segment sales, when stated in U.S. dollars, by approximately $22.9 million.
Net sales for the International segment were $109.6 million for the six months ended June 30, 2009, a decrease of $17.3 million, or 14%, compared to $126.9 million in the same period in 2008. Local currency sales of the International segment improved $2.7 million during the current period. In China, local currency sales increased $10.2 million, reflecting strong shipments of SCBAs to the Hong Kong Fire Service, as well as a continued focus on growing our business in the region. Local currency sales in Australia and Latin America were down $5.9 million and $4.8 million, respectively, primarily due to the economic recession. Currency translation effects reduced International segment sales, when stated in U.S. dollars, by $20.0 million, primarily related to a weakening of the Australian dollar and the Brazilian real.
Selling, general and administrative expenses. Selling, general and administrative expenses were $112.9 million during the six months ended June 30, 2009, a decrease of $22.1 million, or 16%, compared to $135.0 million in the same period in 2008. Selling, general and administrative expenses were 25.3% of net sales in the first half of 2009 compared to 24.1% of net sales in the same period last year. First half selling, general and administrative expenses in the North American segment were $45.4 million, a decrease of $11.2 million, or 20%, from $56.6 million in the same period last year. The decrease was a direct result of cost-savings initiatives that we have taken in response to the effects of the economic recession. Local currency selling, general and administrative expenses in the European and International segments were $0.8 million lower in the current period. Currency exchange effects reduced European and International segment administrative expenses for the six months ended June 30, 2009, when stated in U.S. dollars, by $10.5 million, primarily related to a weaker euro, Australian dollar, and Brazilian real.
previously-discussed decrease in net income. Trade receivables were $174.0 million at June 30, 2009 and $198.6 million at December 31, 2008. LIFO inventories were $145.3 million at June 30, 2009 compared to $159.4 million at December 31, 2008. The $24.6 million decrease in trade receivables reflects a $29.0 million decrease in local currency balances, primarily due to lower sales, partially offset by a $4.4 million increase due to currency translation effects. The $14.1 million decrease in inventories reflects a $21.1 million decrease in local currency inventories, partially offset by a $7.0 million increase due to currency translation effects. The $9.5 million local currency decrease in income taxes receivable, prepaids and other current assets was primarily related to a local currency reduction of $9.2 million in income taxes receivable. The increase in other non-current assets of $14.6 million was due primarily to an increase in receivables due from insurance carriers.
Read the The complete ReportMSA is in the portfolios of Bruce Sherman of Private Capital Management.
