Q2 2024 MSA Safety Inc Earnings Call Transcript
Key Points
- MSA Safety Inc (MSA) achieved net sales growth of 3%, organic constant currency sales growth of 4%, and adjusted earnings growth of 10% in the second quarter.
- The company successfully reduced its backlog to normalized levels, overcoming previous supply chain issues.
- Sales in the Fire Service category increased mid-single digits, with strong performance in turnout gear and fire helmets.
- The new FL5000 Multi Spectrum Flame Detector and io4 portable detection devices received positive market feedback, contributing to growth in the Detection segment.
- MSA Safety Inc (MSA) maintained a strong balance sheet with a net leverage ratio of 0.9 times and continued to return value to shareholders through dividends and stock repurchases.
- Industrial PPE sales were slightly negative year-over-year, with headwinds in ballistic helmets and respirators.
- Currency translation posed a 1% headwind to overall sales growth.
- The company faced slightly higher SG&A expenses due to volume, inflation, investments in professional services, and a one-time legal cost.
- The book-to-bill ratio was slightly below one times for the second quarter, indicating potential future sales challenges.
- There are concerns about the timing of orders and macroeconomic and geopolitical risks that could impact future performance.
Good day, and welcome to the MSA Safety second-quarter 2024 earnings conference call. (Operator Instructions) Please note this event is being recorded.
I would now like to turn the conference over to Larry de Maria. Please go ahead.
Thank you. Good morning, and welcome to MSA Safety's second-quarter 2024 earnings conference call. This is Larry de Maria, Executive Director of Investor Relations. I'm joined by Steve Blanco, President and CEO; Lee McChesney, Senior Vice President and CFO; and Stephane Sciullo, President of our Americas segment.
During today's call, we'll discuss MSA's second-quarter financial results and provide an update on our full-year 2024 outlook. On slide 2, I'd like to remind everyone that the matters discussed during this call may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, all projections and anticipated levels of future
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