The Business of MSA
The Business of MSA
The Business of MSA
The Business of MSA
The Business of MSA
The Business of MSA
The Business of MSA
The Business of MSA

FIFA World Cup
Security personnel charged with safeguarding the 2006 FIFA World Cup relied on MSA technology to monitor a variety of safety-related conditions and data.



Expansion in China
In 2006, MSA expanded breathing apparatus production in China to meet the growing needs of the Chinese fire service.



Altair® Series Gas Monitors
The Altair Series of single gas monitors features sensor options for carbon monoxide, hydrogen sulfide and oxygen that operate for more than two years. This long life cycle, combined with MSA dependability, made the Altair monitor a key element of MSA’s strong instrument sales performance in 2006.



Building Ballistics
MSA’s acquisition of Paraclete Armor and Equipment significantly enhances MSA’s presence and brand in the global military and law enforcement markets.



SavOxCap Self Rescuer
Introduced in the fourth quarter of 2006, MSA Europe’s SavOxCap 60 SCSR is the only hood-style Oxygen Self Rescuer to provide a full 60 minutes of service time.



High Definition Imaging
With the introduction of the Evolution®5200HD Thermal Imaging Camera, MSA reaffirmed its position as the leading innovator in TIC technology.



Building Technology Leadership
To build relationships that will accelerate MSA product innovation and technology development, the company held a special event in cooperation with NASA and Penn State University. Called “MSA Technology Infusion,” the conference helped MSA identify nine companies as potential technology partners.
In 2006, MSA’s growing global portfolio of businesses and safety products helped the company achieve solid results despite challenging market conditions in North America as MSA Europe and MSA International achieved record sales. MSA achieved robust growth in many key global markets, completed strategic acquisitions in North America and South Africa to position the company for further growth, and launched innovative products that are meeting the ever-changing needs of customers around the world. At the same time, MSA implemented a strategic reorganization initiative in North America to enhance its operational excellence and its future performance as the world’s foremost provider of sophisticated safety products and systems. The following is a snapshot of some of our most notable achievements in 2006.


European and International Markets Drive Revenue Growth



2006 Winter Olympics
Underneath the bobsled venue of the 2006 Winter Olympics in Torino, Italy, MSA’s Ultima® XE Monitoring System was on guard keeping an eye out for potentially hazardous refrigerant leaks.
MSA Europe and MSA International reported record sales in 2006, with double-digit growth in many countries. Sales in Europe rose 21% to $219.2 million from $180.5 million a year earlier. Delivering its best year in company history, MSA Europe achieved these record sales through higher shipments of breathing apparatus in Western European markets, strong sales growth in Eastern and Central Europe, and several successful new product launches. MSA Europe also got a boost from the FIFA World Cup Soccer matches and the 2006 Winter Olympic Games, both of which used MSA products such as the TecBOS.solutions Software Package and the Ultima®XE Monitoring System, respectively, to enhance safety and security at these high-profile sporting events.

Sales at MSA International rose 19% to a record $191.1 million from $160.9 million, reflecting the positive impact of the Select PPE acquisition in South Africa, sharply higher sales in China and Chile, and in two promising new markets: Indonesia and Malaysia. Five affiliates of MSA International recorded growth of more than 20%. During the year, MSA International also opened its first office in Egypt to pursue growth opportunities there. In North America, sales dipped 11% to $503.4 million from $566.5 million a year earlier due to challenging military market conditions and delays in Federal fire service funding. However, MSA instrument sales continued a multi-year growth trend with sales increasing more than 20% for the year. In particular, MSA North America benefited from higher sales of gas-detection instruments such as the Altair® and Solaris® Series of handheld instruments and strong demand for MSA’s SAFESITE® System, an advanced detection-and-warning system that was deployed at several high-profile events, including the Super Bowl, Major League Baseball’s All-Star game and the NCAA Men’s Final Four Basketball Championship.

Innovation Drives Major Contract Wins

In North America, the U.S. Air Force awarded MSA a $36 million contract in February 2006 to develop and supply a new versatile respiratory protection system for air base firefighters. It was the first military contract for a product based on MSA innovations in self-contained breathing apparatus for the fire service. The new system will protect Air Force personnel from a wide range of chemical, biological, radiological and nuclear contaminants.



Investor Relations
In 2006, MSA hosted its first Investors’ Day at its Cranberry Woods campus near Pittsburgh. The one-day event provided more than 20 key investors and analysts with an informative, firsthand look at the company’s mission, operations, management depth and growth strategy.
In Europe, MSA won a $9.3 million contract from the German military to supply a new gas mask system for air, ground and naval personnel. Under the contract, MSA will produce 50,000 masks and furnish filters, protective lenses and spare parts. The gas mask protects users from nuclear, biological and chemical threats and meets new performance specifications developed in cooperation with the German military.

In South Africa, MSA landed a $2.1 million order from Anglo Platinum Amandelbult to supply mine safety products. Other major contracts included a $2.3 million order from the Australian Navy for the LifeGard III Escape Breathing Apparatus and a $1.1 million order in Brazil for fire service equipment.

Acquisitions Offer Growth Opportunities

MSA acquired Paraclete Armor and Equipment of St. Pauls, N.C. in September, expanding the company’s line of advanced ballistic body armor products while enhancing its ability to pursue new sales opportunities in both the global law enforcement and military markets. Paraclete is a leading maker of advanced ballistic body armor for customers including the Special Forces units of the U.S. military.

In South Africa, to create a platform for further growth, MSA formed a joint venture in January 2006 with Mineworkers Investment Company. The joint venture then acquired Select Personal Protective Equipment (Select PPE), a growing operator of safety supply stores serving the South African mining industry.

New Product Pipeline

MSA continued to introduce new and innovative products to protect the health and safety of customers around the world. In North America, MSA launched the new Altair Series of single gas detectors and the SAFESITE Sentry Detector, a permanent instrument that provides enhanced capabilities with radiation protection, wireless communication and broader capabilities for toxic gas detection. Other product launches included:
  • The Defender® Integrated Visor – the first integrated, optically corrected visor for traditional-style fire helmets worn in the United States;
  • The SmoothDomeTM Industrial Helmet – a low-cost polyethylene helmet for private labeling with large MSA distributor channel partners;
  • The Category Leading Evolution® 5200HD (High Definition) – a superior thermal imaging camera with enhanced picture quality display; and
  • The WorkmanTM Line of Fall Protection Products – which provides construction personnel with broad new choices in fall arrest and prevention devices.


Excellence in Safety
Being a leader in safety means practicing what you preach. In 2006, MSA’s manufacturing facility in Murrysville, Pennsylvania was recognized as being one of the safest in the United States by the Occupational Safety and Health Administration. From left to right are Murrysville Plant Manager Steve Protzik, Acting Deputy Administrator for OSHA Marie Cassady, President and Chief Operating Officer Bill Lambert, Murrysville associates Jeremy Sowers and Bob Martin, and Director of Pittsburgh Operations Joe Murray.
After launching more than 20 products in 2005, MSA Europe continued to innovate in 2006, introducing several new products while shifting its focus to manufacturing excellence to meet the growing demand for MSA products. Key product launches, which solidified MSA Europe’s reputation as the leader in safety technology, included a new version of its best-selling F1 SF fire service helmet and the SavOxCap 60 SCSR – a new hooded self-rescuer that provides a 60-minute oxygen supply for underground emergencies.

Committed to Operational Excellence

At the beginning of 2006, MSA North America implemented “Project Outlook,” a strategic initiative to create a more streamlined and customer-focused business in North America. The reorganization plan aligned the company’s resources with strategic priorities in North America while consolidating the business and support functions of the former Safety Products and Instrument Divisions and their management to form one integrated team – MSA North America – with the added benefit of achieving at least $4 million in annual cost savings.

In the third year of its transformation plan, MSA International continued taking steps to enhance its operations and processes. A major focus in 2006 was the implementation of lean manufacturing through Demand Flow® Technology at its manufacturing sites to shorten cycle times, improve productivity and efficiency, enhance inventory turns and deliver greater consistency in its manufacturing processes. MSA International also launched an information technology initiative that will significantly enhance information sharing while fostering a truly integrated business approach across all of its affiliates. To drive the transformation, MSA International accelerated its focus on integration and teamwork by bringing together more than 380 associates from operations, finance, IT, sales and marketing at six conferences that were dedicated to empowering their participation in the transformation.



Connecting With Customers
Around the world, MSA invested in training programs to enhance business performance and, in many cases, put MSA managers in the shoes of the customer. Below, members of MSA Europe’s leadership team participate in required fire protection and safety training in Dortmund, Germany.
In Europe, MSA established Centers of Excellence encompassing engineering, manufacturing and product management at its facilities in Germany, France and Sweden. At the same time, lean manufacturing efforts improved production rates, resulting in lower costs and higher output. Overall, MSA took action in 2006 to strengthen the company in North America as it achieved record sales at MSA Europe and MSA International that reflected the success of its global growth strategy and strategic initiatives that have – and will continue – to transform the company. Across its balanced portfolio of global businesses, MSA is enhancing its productivity, performance, processes and products with a focus on what matters most – delivering value and protecting the health and safety of MSA customers worldwide.