- OIL & GAS
Excluding the effect of weakening currencies, sales increased $16 million, or 6 percent. Net income for the second quarter 2012 was a record $28 million, or 76 cents per basic share, an increase of $8 million, or 43 percent, compared with $20 million, or 53 cents per basic share, for the same period last year.
“MSA’s consolidated second quarter results reflect further advancement in executing our corporate strategy,” said William M. Lambert, MSA President and CEO. “When you exclude the impact of weakening foreign currencies, our quarterly revenue from our global core product groups — which include Head Protection, Fall Protection, Portable Gas Detection, Fixed Gas and Flame Detection, and Self-Contained Breathing Apparatus (SCBA) — increased 10 percent, with core product group sales to emerging markets up 18 percent.
Second quarter sales in the company’s North American segment increased $8 million, or 6 percent, versus the same period of 2011. Sales increased $11 million in gas detection products, $2 million in head protection products and $1 million in fall protection products on higher shipments to industrial markets. Partially offsetting these increases was a decline of $5 million in sales of Advanced Combat Helmets (ACH) and ballistic vests to Military Markets.
This decrease reflects the divestitures of the North American ballistic helmet and ballistic vest businesses. As announced in June, MSA completed the sale of its North American ballistic helmet business to Revision Military of Essex Junction, Vermont. The sale of the ballistic vest business closed in the fourth quarter of 2011.
Sales in the company’s European segment decreased $8 million, or 10 percent, when compared to the second quarter of 2011, on a weakening euro.
Net income in MSA’s North American segment increased $4 million in the second quarter of 2012. The current quarter income includes $1 million of after-tax income related to the divestiture of the North American ballistic helmet business. Excluding this gain, net income increased $3 million. This increase reflects the previously discussed increase in sales and improved gross profits. These improvements were partially offset by higher operating costs on the higher level of sales.
“Our strategic focus on developing business from MSA’s core product lines continues to produce favorable results,” Mr. Lambert said. “On the strength of some large orders and nice gains in North America, Latin America and from General Monitors, our core product sales now represent nearly two-thirds of total sales, and our focus is on increasing that percentage in the quarters ahead. While the European economic situation remains a concern, and as we deal with slowing economic conditions in Asia and elsewhere, we remain committed to executing this strategy,” he concluded.