US industrial-safety equipment company MSA Safety increased third-quarter sales to 536.4 million dollars, while net profit fell to 58.4 million dollars. Adjusted earnings rose after excluding certain expenses, including transaction and digital-transformation costs. Operating cash generation also declined. The company completed its Autronica acquisition and retained its full-year expectation for low-double-digit reported sales growth.
Economics & Markets··Midday
Sales grow across both operating regions
US industrial-safety equipment producer MSA Safety reported 536.4 million dollars in sales for the third quarter ended September 30, compared with 468.4 million dollars a year earlier. Its November 2 results put adjusted earnings per share at 2.09 dollars. Americas sales increased 8 per cent to 338.2 million dollars, while International sales rose 28 per cent to 198.2 million dollars. Management retained its annual outlook for low-double-digit reported sales growth.[1], [2]
Reported profit falls as adjusted earnings rise
Net income fell from 69.6 million dollars to 58.4 million dollars. Operating profit declined from 94.3 million dollars to 88.2 million dollars, while adjusted operating profit rose from 103.7 million dollars to 114.9 million dollars. The reconciliation included about 15 million dollars of transaction and digital-transformation costs, against about 1.9 million dollars a year earlier. Amortisation of acquired intangible assets reached about 8.1 million dollars.[1]
Operating cash generation declines
Cash generated by operations declined from 112.5 million dollars to 82.3 million dollars. Capital spending reached 14.1 million dollars, leaving free cash flow of 68.2 million dollars compared with 100.5 million dollars a year earlier. Following completion of the Autronica acquisition, MSA reported total debt of about 1.121 billion dollars and net debt of 934 million dollars.[1]
