Thursday, health and safety products maker Mine Safety Appliances Co. (MSA) said its fourth quarter earnings decreased from last year on higher expenses, even as revenues increased 8%.
The Pittsburgh, Pennsylvania-based company reported fourth quarter net income of $16.5 million or $0.46 per share, compared to $17.5 million or $0.48 per share in the same quarter last year.
On average, seven analysts polled by Thomson Reuters expected the company to report earnings of $0.49 per share. Analysts' estimate typically excludes special items.
Net sales for the fourth quarter were $288.8 million, up 8% from $267.5 million in the previous year period. Five Street analysts expected revenues of $274.50 million for the quarter.
MSA's North American segment reported 14% improvement in fourth quarter earnings, while its European segment earnings declined $1.6 million. Net income in the International segment was $0.8 million lower in the fourth quarter of 2008.
The company attributed the revenue growth for the quarter to strong shipments against government contracts and the diversified nature of its end-user markets.
Sales in the company's North American segment were up 23% to $29.4 million, while sales in the European segment were $70.5 million, compared to $70.4 million last year. Currency translation reduced European segment sales by $9.7 million during the current quarter.
Self-contained breathing apparatus sales grew $28.9 million in the current quarter, primarily due to $28.0 million in shipments of Firehawk M7 Responder SCBAs to the U.S. Air Force.
Economic slowdown reduced demand from construction and industrial distributors during the quarter, reducing head protection shipments by $2.1 million. Shipments of gas masks were down $3.9 million, reflecting the completion of certain military orders. Interest for the recent quarter declined to $1.84 million from $3.03 million in the preceding year period.
For the fiscal year 2008, net income was $70.4 million or $1.96 per share, compared to $67.6 million or $1.86 per share previous year. The Street expected earnings of $1.94 per share for the year.
Net sales for the year rose 15% to $1.13 billion from $1.00 billion last year, while analysts anticipated revenues of $1.12 billion.
MSA is currently trading at $18.74, up $1.49 or 8.69%, on a volume of 0.13 million shares, on the NYSE.
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