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MSA Announces Record Fourth Quarter and Full Year Sales
Date:2/26/2009

n Africa and Latin America as a result of ongoing growth initiatives in those markets and strength in the mining industry. Full year currency translation effects on International segment sales were not significant.

Net income for the full year increased $2.8 million in 2008, primarily in North America. Net income in 2007 benefited from after-tax gains of $7.7 million on the sale of real estate in North America. Excluding these gains, net income was up $10.5 million for the year. Net income in the North American segment improved $3.8 million for the year. Excluding the previously-discussed 2007 gains on the sale of real estate, North American segment net income improved $11.5 million, primarily due to the increase in sales. Net income for 2008 was relatively flat in the European and International segments, as the higher gross margins generated by sales improvements were largely offset by the higher operating expenses required to drive ongoing growth initiatives.

"During 2008, we saw meaningful sales growth in each of our three geographic segments and we achieved new performance benchmarks for the company," Mr. Lambert commented. "However, the global economic recession has deepened in recent months and MSA is not immune to its effects. These are uncertain economic times, to be sure, requiring our global teams to closely monitor the markets we serve and continuously adjust our response to meet market realities. We have recently intensified our efforts to reduce costs across MSA and we have taken actions to reduce staff and better align our factory workforce with customer demand. While I am pleased that we saw strength in our core business throughout most of 2008, we must continue to be diligent in our efforts to reduce costs and manage our business in ways that allow us to weather the current downturn and seize opportunity when recovery occurs," Mr. Lambert concluded.

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