MSA's Fourth Quarter Sales Up, Profits Down
The company’s fourth quarter profit dropped by 8 percent to $12 million, and year-end profit decreased by 12 percent to $38 million. Costs related to the October 2010 acquisition of General Monitors and $10 million in restructuring charges offset revenue growth.
MSA announced its fourth quarter and year-end results this morning, reporting increased North American and international sales. Fourth quarter net sales rose by 21 percent to $285 million, and net sales for 2010 rose 7 percent to $977 million.
However, the company’s fourth quarter profit dropped by 8 percent to $12 million, and year-end profit decreased by 12 percent to $38 million. Costs related to the October 2010 acquisition of General Monitors and $10 million in restructuring charges offset revenue growth.
“We continue to see nice growth in core product groups in both developed and emerging markets,” said MSA President and CEO William Lambert. He added that the company is looking at Asia and Latin American as major sources of future growth.
North American fourth quarter sales increased $32 million, or 31 percent, as sales of hard hats, gas detection products, and ballistic helmets rose. The company said it will be a challenging year for the fire service market, as fire programs continue to experience significant financial pressures.
Fourth quarter European sales increased by $5 million, or 7 percent. However, currency translation effects decreased the region’s segment sales when stated in U.S. dollars, mainly due to a weak euro. The company said plans to focus on restructuring and improving performance in the European market, which is experiencing slower growth.
International sales increased $12 million, or 20 percent, with particularly strong sales in China and Latin America. Roberto Cañizares, executive vice president and president of MSA International, said that the company is beginning to see more demand for mine safety products in international markets. China, in particular, is beginning to show more interest in buying safety products for miners, said Cañizares, adding the country has a large mining segment but little enforcement.
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