MSA Safety Announces Third Quarter 2024 Results

Core Insights - MSA Safety Incorporated reported a quarterly net sales of $433 million, reflecting a 3% year-over-year decrease on both a reported and organic constant currency basis [2][3] - The company generated a GAAP operating income of $91 million, representing 21.1% of sales, and an adjusted operating income of $98 million, or 22.6% of sales [2][3] - GAAP net income was recorded at $67 million, equating to $1.69 per diluted share, while adjusted earnings reached $72 million, or $1.83 per diluted share [2][3] - MSA Safety expects mid-single-digit sales growth in the fourth quarter, leading to low-single-digit growth for the full year [1][4] Financial Performance - The company achieved a gross profit of $207.5 million, down from $218.8 million in the same quarter last year [5] - Selling, general and administrative expenses were $95.1 million, compared to $102.2 million in the prior year [5] - Research and development expenses totaled $16.7 million, slightly down from $17.7 million year-over-year [5] - The company repaid $38 million of debt and returned $20 million to shareholders through dividends [2][4] Operational Highlights - MSA Safety's backlog increased sequentially, indicating strong order growth despite a modest sales contraction [3] - The detection business performed well, with double-digit sales growth in portable products [3] - The company maintained a healthy balance sheet with a net leverage of 0.9 times [4][24] Segment Information - For the three months ended September 30, 2024, net sales to external customers were $299.5 million in the Americas and $133.2 million internationally [8] - Adjusted operating income for the Americas segment was $91.8 million, with an adjusted operating margin of 30.7% [8] - The International segment reported an adjusted operating income of $18.2 million, with an adjusted operating margin of 13.6% [8] Cash Flow and Capital Allocation - Cash flow from operating activities was $84.3 million, down from $124.8 million in the same quarter last year [7] - Capital expenditures for the quarter were $14.3 million, compared to $12.7 million in the prior year [7] - The company repurchased $10 million of common stock as part of its disciplined capital allocation strategy [2][4]