MSA Safety Incorporated (NYSE:MSA) Q4 2015 Earnings Conference Call - Final Transcript

Feb 24, 2016 • 08:30 am ET

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MSA Safety Incorporated (NYSE:MSA) Q4 2015 Earnings Conference Call - Final Transcript

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Presentation
Operator
Mark Deasy

(Starts Abruptly) Bill Lambert, Chairman, President and Chief Executive Officer; Ken Krause, Vice President, Chief Financial Officer and Treasurer and Ron Herring, Senior Vice President and President, MSA International.

Our fourth quarter press release was issued last night and it is available on our website at www.msasafety.com. Before we begin, I need to remind everybody that the matters discussed on this call excluding historical information are 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 performance. Forward-looking statements involve risks, uncertainties and other factors that may cause our actual results to differ materially from those discussed here. These risks, uncertainties and other factors are detailed in our filings with the SEC, including our most recent Form 10-K which was filed on February 25, 2015. You are strongly urged to review all such filings for a more detailed discussion of such risks. Our SEC filings can be obtained at no charge at www.sec.gov and on our Investor Relations website. MSA undertakes no duty to publicly update any forward-looking statements made on this call, except as required by law.

In addition, we have included certain non-GAAP financial measures as part of our discussion today. These non-GAAP financial measures should not be considered replacements for GAAP results. Reconciliations to the most directly comparable GAAP measures are available on our Investor Relations website at investors.msasafety.com. You can find this information in our quarterly results section which is located under the Financial Information header.

That concludes our forward-looking statements. So with that, let me introduce MSA's Chairman, President and Chief Executive Officer, Bill Lambert. Bill?

Executive
Bill Lambert

Thank you, Mark, and good morning, everyone. As always, I want to begin by saying thank you for joining us this morning and for your continued interest in MSA. I also want to thank the employees of MSA who continue to manage through challenging business conditions. I'm pleased to report that due to their efforts we had a strong finish to the year. Consolidated local currency sales increased 8% in the fourth quarter and increased 4% excluding Latchways, the UK-based fall protection company that we acquired October 21, of last year. This strong finish to the year helped us recognized 8% local currency growth for the full-year or 7% excluding Latchways. This 8% local currency growth was at the high-end of the mid-single digit sales growth range that we've been discussing with you throughout the year. Much of this was due to great success in the fire service, which I'll detail in just a minute.

Overall, I believe we execute well, despite the external headwinds that are impacting our business. Most notably, the strong U.S. dollar, the weak economic conditions in emerging markets like China and Brazil and of course depressed oil prices that continue to adversely impact employment levels and investment levels in the oil and gas industry, which ultimately adversely impacts demand for some of our core products like