dollars, by $11.7 million, largely due tothe weakening of the Australian dollar, South African rand, and Brazilianreal.Net income in MSA's North American segment was down $10.9 million, or 75percent, in the first quarter of 2009.First quarter 2009 net income in NorthAmerica includes a $4.4 million after-tax non-cash charge related to avoluntary retirement incentive program that was completed in January. Excluding this one-time charge, North American segment net income declined$6.5 million in the current quarter.This decrease was primarily related tothe previously-discussed decrease in sales, partially offset by reductions inoperating expenses.Net income in the European segment was $1.4 million higher in the firstquarter of 2009.The increase was primarily due to a reduction in operatingexpenses and a lower effective tax rate. Currency translation effectsdecreased current quarter European segment net income, when stated in U.S.dollars, by approximately $0.2 million, due to the weakening of the euro andmost other European currencies.Net income in MSA's International segment was down $3.0 million, or 83percent, in the first quarter of 2009.The decrease was primarily related tothe previously-discussed decrease in sales.Currency translation effectsdecreased current quarter International segment net income, when stated inU.S. dollars, by approximately $1.1 million, largely due to the weakening ofthe Australian dollar, South African rand and Brazilian real."Following a 2008 in which we saw meaningful sales growth in each of our threegeographic segments and achieved record annual sales, we knew 2009 wouldpresent a number of new challenges for MSA," Mr. Lambert commented."In theseuncertain economic times, our global teams are closely monitoring the marketswe serve and adjusting our responses to meet market realities.Late last yearand throughout the first quarter, we intensified our efforts to reduce costsacross MSA.During the quarter, we reduced costs in all areas of the company,while we continue to implement our long-term strategy to enhance efficiencyand operating margins on a global basis."Mr.
Lambert referenced several cost-cutting measures the company hasimplemented, including:--A voluntary retirement incentive program in North America, implementedin the first quarter, which resulted in an 8.6% decrease in the U.S.salaried workforce.This became effective February 1.The cost ofthisprogram was $6.6 million, all of which is non-cash in nature, but isexpected to provide an estimated $5 million annual savings.--A pay freeze for all salaried U.S. These combined cost reduction programs will save an estimated $2.6million in expense this year."While I am pleased with the results of these actions to-date, we mustcontinue to be diligent in our efforts to reduce costs and manage our businessin ways that allow us to not only weather the current downturn, but beresponsive in seizing opportunity when recovery occurs," Mr. Lambertconcluded.About MSA:Established in 1914, MSA is a global leader in the development, manufactureand supply of sophisticated safety products that protect people's health andsafety.Sophisticated safety products typically integrate any combination ofelectronics, mechanical systems and advanced materials to protect usersagainst hazardous or life-threatening situations. The company's comprehensiveline of products is used by workers around the world in the fire service,homeland security, construction and other industries, as well as the military. Principal products include self-contained breathing apparatus, gas masks, gasdetection instruments, head protection, respirators and thermal imagingcameras.
The company also provides a broad range of consumer and contractorsafety products through retail channels.These products are marketed and soldunder the MSA Safety Works brand.MSA has annual sales of approximately $1billion, manufacturing operations throughout the United States and Europe, and42 international locations.Additional information is available on thecompany's Web site at Statement Regarding Forward-Looking Statements:Except for historical information, certain matters discussed in this pressrelease may be forward-looking statements within the meaning of Section 27A ofthe Securities Act of 1933, as amended, and Section 21E of the SecuritiesExchange Act of 1934, as amended. Forward-looking statements, includingwithout limitation all projections and anticipated levels of futureperformance, involve risks, uncertainties and other factors that may cause ouractual results to differ materially from those discussed herein. Actualresults can be affected by any number of factors, many of which are outside ofmanagement's control.Among the factors that could cause such differences areglobal economic conditions, spending patterns of government agencies,competitive pressures, product liability claims, the success of new productintroductions, currency exchange rate fluctuations, the identification andsuccessful integration of acquisitions and the risks of doing business inforeign countries. These risks, uncertainties and other factors are detailedfrom time-to-time in our filings with the United States Securities andExchange Commission ("SEC"). Shortly after the lights shut down inside Radio City Music Hall on the 24th of April, the most serious of fantasy football managers will find themselves occasionally considering what implications this draft will have on that draft.Don't worry, there are legions of fantasy junkies out there doing the same. Before those three magical days in late April arrive, it doesn't hurt to make some fearless fantasy forecasts for some of the 2010 NFL rookies.Here's a projection of several offensive prospects projected stat line (i.e. fantasy impact) for their debut season.A few of the big names are included in Part One, as are a handful of second-day picks with the potential to make our break managers seasons, or dynasties for those keeper-league gamers. C.J.


August 26th, 2010
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