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MSA Safety

msa · NYSE Industrials
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FY2008 Annual Report · MSA Safety
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OUR MISSION

ABOUT THE COVER

FINANCIAL HIGHLIGHTS

Every Life Has a Purpose… and at MSA we’re committed to
ensuring that people all over the world, no matter where they
live, work or play, have the opportunity to fulfill that purpose.
Whether it’s parenting a child, coaching a team, restoring
peace, caring for the sick or teaching a new generation, MSA
remains dedicated to protecting the health and safety of 
people in the workplace, so they can fulfill their mission and
serve their families and communities in which they live.     

As MSA celebrates its 95th year in business, we remain com-
mitted to ensuring people live in health throughout the world.
We’ll be there to monitor and filter the air they breathe, protect
them from falls and objects falling from above, keep them safe
from projectiles on the frontlines of war or the streets of our
communities; and safeguard consumers while tackling projects
around the home.

Shown on the cover are people at work and play from 
across the globe. While their purposes in life are different, 
our mission to protect them remains unchanged. Some of
their stories are featured on the pages that follow.

That men and women may work in safety and that they, their
families and their communities may live in health throughout
the world. 

OUR VISION

To be the leading innovator and provider of quality safety and
instrument products and services that  protect and improve
people’s health, safety and the environment.

To satisfy customer needs through the efforts of motivated,
involved, highly trained employees dedicated to continuous
improvement in quality, service, cost, value, technology 
and delivery.

BUSINESS OF MSA

MSA is in the business of developing, manufacturing and selling
innovative and sophisticated products that enhance the safety
and health of workers throughout the world. Critical to MSA’s
mission is a clear understanding of customer processes and
safety needs. MSA dedicates significant resources to research
which allows the company to develop a keen understanding of
the customer safety requirements for a diverse range of markets,
including the fire service, law enforcement, construction, 
public utilities, mining, chemical, petroleum, HVAC, hazardous
materials remediation, military and retail. MSA’s principal products,
each designed to serve the needs of these target markets, 
include respiratory protective equipment, thermal imaging
cameras, gas detection instruments, ballistic protection, as
well as head, eye, face, hearing and fall protection products.

MSA was founded in 1914 by John T. Ryan and George H. Deike,
two mining engineers who had firsthand knowledge of the
terrible human loss that was occurring in underground coal
mines. Their knowledge of the mining industry provided the
foundation for the development of safety equipment to better
protect underground miners. While the range of markets served
by MSA has expanded greatly over the years, the founding 
philosophy of understanding customer safety needs and designing
innovative safety equipment solutions remains unchanged. 

MSA is headquartered in Pittsburgh, Pennsylvania, with operations
employing 5,100 associates throughout the world. A publicly
held company, MSA’s stock is traded on the New York Stock 
Exchange under the symbol MSA.

FOR THE YEAR (thousands, except per share)

2006

2007

2008

Net sales

Net income

$913,714

$ 990,252 

$1,134,282

$ 63,918

$

67,588

$

70,422

Basic earnings per common share

$

1.76

$

1.89

$

1.98

AT YEAR END (thousands)

Total assets

$898,620

$1,016,306

$ 875,810

Working capital

$289,424

$ 287,861

$ 258,088

Common shareholders’ equity

$436,926

$ 460,604

$ 392,841

Common shares outstanding

36,015

35,662

35,786

SALES

$1,134.3

$990.3

$913.7

NET INCOME

$70.4

$67.6

$63.9

ANNUAL SALES
BY PRODUCT GROUP

13%

12%

28%

21%

26%

Head Protection
(Helmet, Eye, Face & Hearing)

Air-Supplied Respirators
Gas Detection Instruments
Air-Purifying Respirators
Fall Protection and Other

ANNUAL SALES
BY REGION

7%

6%

10%

25%

52%

North America
Europe
Asia & Pacific Rim
Africa
South America

06      07    

08

06      07    

08

M S A   A N N U A L   R E P O R T   2 0 0 8

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TO OUR SHAREHOLDERS...

IN 2008, MSA CONTINUED TO STRENGTHEN ITS BRAND POSITION AS THE GLOBAL
LEADER IN SAFETY EQUIPMENT WHILE DELIVERING RECORD SALES THAT EXCEEDED
$1 BILLION FOR THE FIRST TIME IN THE COMPANY’S HISTORY.  

$13 million for MSA in 2008, as the OGP market showed
strong demand for our products throughout most of
the year.

MSA launched many other innovative new products for
customers in our key markets, including our  “one-of-a-
kind” Firehawk® M7 Responder® Air Mask for the U.S.
Air Force; an advanced ballistic helmet for the Canadian
military; firefighters saw a new stand-alone personal
alert safety system, thermal imaging camera, and helmet
visor for their MSA Cairns® helmets; new fall protection
products were developed and introduced for the Con-
struction and Industrial markets; new riot-control helmets
and body armor for the Law Enforcement market; and a
wide range of other outstanding products.  

Force for our Firehawk® M7 Responder® Air Mask, a
new multi-function respirator that MSA designed to
meet stringent and unique needs of air base fire
brigades. North American sales of our head protection
products, primarily our V-Gard® Hard Hat, showed a
healthy $3 million increase over 2007, due to strength
in most industrial and construction markets, at least
through the third quarter of 2008.

Sales rose 18% in our European segment, reflecting 
favorable currency translation effects of the stronger
Euro and strong shipments of ballistic helmets and body
armor for police forces in France, and self-contained
breathing apparatus for government agencies in 
Germany and Eastern Europe.  

As a measure of our R&D effectiveness, roughly one
third of MSA’s global sales in 2008 were from products
introduced over the last three years. I invite you to learn
more about MSA’s commitment to product innovation
— one of the keys to our future success — on pages 
4 and 5 of this annual report.

Sales in our International segment increased nearly
9%, driven primarily by continuing market penetration
gains in the South African and Latin American markets.
Currency translation effects were not significant on this
full year performance in MSA International.

For the year, MSA’s net income rose 4% to $70.4 million,
or $1.98 per basic share, from $67.6 million, or $1.89
per basic share, in 2007. It’s important to note that the
2007 results included after-tax gains of $7.7 million
from the sale of real estate. Excluding those gains from
non-operating activities, MSA’s adjusted net income
grew by $10.5 million in 2008, reflecting the stronger
performance in North America, where net income rose
8%. Net income in our Europe segment was up 6%,
while net income in our International segment was up
2% from the previous year.  

It was especially gratifying that MSA achieved a record
year in terms of pretax profit from operations. Profit
from operations, excluding extraordinary items, was
$127 million, exceeding the company’s previous high,
which was set in 2005. The growth in sales and profit
from operations was a testament to our efforts in product
leadership, customer intimacy, emerging market focus
and operational excellence.        

Innovations for MSA Customers
Overall, MSA’s performance in 2008 was fundamentally
strong, led by our military product line and our impressive
pipeline of new products. One of our greatest success
stories in 2008 was the Altair® 4 Mulitgas Detector,
an extremely durable, value-priced next-generation
portable device that helps protect people in the oil, gas
and petrochemical (OGP) industry, a key MSA market.
Sales of the Altair 4 Detector exceeded our projections,
earning this breakthrough product the honor of being
named our  “2008 Product of the Year.” MSA also 
introduced the Altair® 5 Multigas Detector, a sister
product with expanded capabilities and features.

Overall, combined handheld and permanently installed
gas detection instrument sales increased nearly 

Striving for Operational Excellence
As MSA delivered growth in sales and earnings in 2008,
we continued to implement a comprehensive operations
plan that we believe will enhance customer loyalty and
our competitive strength for years to come. Major 
initiatives under our plan to achieve Operational 
Excellence included:

• The implementation of Demand Flow Technology
and application of global best practices to reduce
costs, improve productivity, maximize efficiency and
enhance our competitive ability to create innovative
products that deliver greater value for our customers.
Our conversion to Demand Flow Technology is vital
because it is a process and system that is expected to
enable MSA factories and warehouses worldwide to
respond faster to the needs of our customers while
reducing inventory and equipment costs. We have seen
encouraging early results from this ongoing initiative,
about which more detail is provided on page 6 of 
this report. 

• The grand opening of a world class factory and tech-
nology center in Suzhou, China that began operations
in November 2008. As our new hub for meeting the
growing demand in Asia for safety products, our new
Suzhou facility provides the foundation needed for MSA
to significantly increase its brand presence in China —
a key geographic market for the future of our company.

• The continued implementation of Project Magellan,
a multi-year initiative that was launched at the start
of 2007 to improve manufacturing efficiency and uti-
lization in North America and reduce operating costs.
More information about the progress we are making with
Project Magellan is provided on page 7 of this report.  

Focused on Key Markets
In 2008, MSA did a superb job of meeting ever-changing
customer needs and product performance standards
that exist within the key markets core to our mission:
Fire Service, OGP, Law Enforcement, Military, Construction
and General Industry.  In select regions of the world,

Reflecting our balanced and diversified global portfolio
of leading-edge safety products, MSA achieved sales
growth in all three of our geographic business segments
— North America, Europe and International. 

In achieving record revenue, we were guided, as always,
by the enduring principle that has defined our mission
for 95 years. MSA protects the health and safety of
working people everywhere, from firefighters, soldiers
and police officers, to construction, mining, factory and oil
and gas workers. We believe “Every Life has a Purpose”
and that our purpose at MSA is to provide high quality
products that protect people from workplace hazards so
they can return, safe and sound, to their families, loved
ones and friends at the end of each day. 

William M. Lambert, President and CEO, with MSA’s
"Product of the Year," the Altair® 4 Multigas Detector, left,
and it's five-gas sister product, the Altair® 5. 

2008 Financial Results
Sales rose 15% to a record $1.13 billion from $990 million
in 2007, as MSA achieved sales growth in nearly every
key market. We benefited from a strong backlog of orders
at the beginning of 2008, which proved to be a major
contributor for reporting record sales. The strength of our
business extended for most of the year, primarily due to
large orders and several significant government contracts,
both in the U.S. and abroad. However, the impact of the
global economic slowdown on customer orders became
very apparent near the end of the year.

In North America, our largest market, sales increased
16% as MSA benefited from three major factors: consis-
tently strong orders for our new Altair® 4 and Altair® 5
Multigas Detectors; $29 million in new contracts from
the U.S. Army for additional Advanced Combat Helmets;
and new contracts totaling $25 million from the U.S. Air 

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M S A   A N N U A L   R E P O R T   2 0 0 8

such as China, Australia and South Africa, MSA was also
a leader in providing mine safety products to continue
the longstanding mission that first put MSA on the 
map in 1914.  

Our major market wins in 2008 included new contracts
to supply additional Advanced Combat Helmets to the
U.S. military and the Firehawk® M7 Responder® Air
Mask to the U.S. Air Force; orders from the Canadian
military for our new CG634 ballistic helmets; and orders
from the German defense forces for protective respiratory
equipment. Our wins in the Law Enforcement market
included orders in France for riot-control helmets and
ballistic body armor, while orders to the OGP market 
fueled our gas detection instrument sales. 

Despite the current economic downturn, MSA increased
our market penetration in Asia, Australia, China, Europe,
South America and Africa as more than half of our MSA
International affiliates achieved sales growth of at least
20% for the year. Including the European and Interna-
tional segments, about 48% of MSA’s sales in 2008 were
outside of North America, a trend that we are determined
to grow in the future with our aggressive global approach
in marketing, sales and distribution.

One of the keys to driving such growth, today and in
the future, is our heightened focus on building Customer
Loyalty. A key metric MSA adopted in 2008 to assess our
effectiveness in this area is the Net Promoter Score (NPS).
Used today by many Fortune 500 companies, it is a
straightforward measure to assess the gap between a
brand’s most vocal advocates (Promoters) and its de-
tractors. More importantly, it holds all of us at MSA 
accountable for how we treat customers. I’m pleased to
report that MSA earned high NPS marks in 2008. In 2009,
our goal is to build on this success, and we will. Through
focus on our Voice of the Customer processes, we are
listening to our customers and working more closely
with them than ever before. That’s smart business that
represents a “win-win” for MSA and our customers over
the long haul.

Milestones and Achievements
Beyond receiving high marks for customer satisfaction,
I’m also proud to report that MSA was recognized on
several other important fronts in 2008. In February, MSA
received the 2007 Pittsburgh Business Ethics Award
from the Pittsburgh chapter of the Society of Financial
Service Professionals and the University of Pittsburgh’s
David Berg Center for Ethics and Leadership. This award
affirmed one of the greatest strengths of MSA — our
commitment to conducting business in an ethical and
socially responsible manner.

In June, MSA announced that the Occupational Safety
and Health Administration had designated our Cranberry
Township, Pennsylvania manufacturing plant as a 
national Voluntary Protection Program Star Site in
recognition of the facility’s health and safety practices
and its exemplary safety record. Of the approximate
seven million workplaces in the U.S. — large and small
— fewer than 1,500 have earned this distinction since
OSHA created the program in 1982. The Cranberry plant
was the second MSA facility to receive this prestigious
Star Site designation; our Murrysville, Pennsylvania plant
was the first in 2006. 

Other milestones in 2008 included celebrating MSA
50th anniversaries in Italy and Germany, two of our
outstanding business affiliates in Europe, which ranks as
our second largest market, after North America. Our teams
in Italy and Germany personify the talent, dedication
and ingenuity that make MSA a safety product leader
around the world.

Economic cycles are a fact of life, and MSA has contended
with severe “down cycles” a number of times over our
long history. We are meeting today’s challenges head on,
with our continuing initiatives to reduce manufacturing
costs, improve operating margins, enhance our competi-
tiveness in key product areas, and strengthen customer 
relationships by providing the best value in safety products. 

In May, John T. Ryan III retired as MSA’s Chief Executive
Officer after leading this company for 17 years. Under
his strong leadership, MSA grew dramatically to become
the world’s leading manufacturer of sophisticated safety
equipment. With steadfast integrity and energy, John
transformed MSA with a strategic vision that accelerated
our global growth and focused the company on innovative
new product development, a vision that continues today.
All of us at MSA wish John well in his retirement and are
pleased that John continues to serve as non-executive
chairman of MSA’s Board of Directors. In his new role,
John continues to share his wisdom and insights with
me and with our strong management team, for which I
am most grateful.  

MSA’s Future in 2009 and Beyond
When I was elected the eighth Chief Executive Officer in
MSA’s remarkable 95-year history as part of a planned
management succession, I accepted this position knowing
that MSA would face new challenges, as it has many
times before. Frankly, the continuing global recession is
our greatest immediate challenge in 2009.  

With many challenges still in front of us, we are focused
more intently than ever on implementing our multi-year
strategy to achieve operational excellence, improve the
efficiency and productivity of our global manufacturing
network, reduce costs, enhance product quality and 
accelerate our introduction of innovative new products
that deliver even better value, performance and protection
for our customers.  

To that point and in light of the global economic 
recession, we have implemented significant cost control
measures on operating expenses across MSA and have
taken actions to reduce staff and better align our factory
workforce with customer demand. At the outset of 2009,
MSA completed a voluntary retirement incentive program
which resulted in an 8% decrease in our U.S. salaried
workforce. This initiative is expected to deliver an 
estimated $5 million in annual savings. MSA also 
implemented a pay freeze for all salaried U.S. and 
Canadian-based employees, which will serve to reduce
annual expenses by an additional $1.9 million. We also
suspended hiring except for those positions deemed truly
mission critical, and we implemented salary increase
restrictions on a global basis. In our factories around
the world, and while always difficult, MSA took steps to
reduce overtime and responded to decreases in demand
by adjusting our hourly workforce through what we hope
will be temporary layoffs. Tight discretionary spending
restrictions are also in effect around the world for MSA. 

I can assure you that MSA has intensified our efforts to
manage and reduce costs in all areas of the company. In
these uncertain economic times, our global teams are
closely monitoring the markets served by MSA, and we
will continuously adjust our response to meet the market
realities and challenges facing MSA.

Overall, I believe that MSA is well positioned for long-
term growth in earnings and sales, once the global
economy rebounds. Our strengths are many. MSA is a
strong global brand that we are protecting through our
uncompromising commitment to quality, innovation
and customer satisfaction. We have a strong, balanced
and diversified portfolio of superb safety products to
help MSA weather the storm of volatile economic cycles.
We have a growing global reach, with a strong network
of manufacturing facilities and a growing number of
distributors. We have proven expertise in advanced safety
technology and know what it takes to create innovative
safety products that are built to perform exceptionally
well and built to last. We have earned a strong track
record of customer satisfaction, loyalty and retention,
backed by our strong team of MSA associates in more
than 40 countries around the world.  

MSA is determined to protect and build MSA’s brand
equity during this economic downturn. We will protect
our core product lines, such as respiratory protection,
gas detection and head protection, and nurture the 
development of new areas of strength. We will continue
to focus on operational excellence to decrease our costs
while increasing efficiencies. And we will do what we
have always done best: drive product development
through advanced technology and innovation.

Most of all, I am confident about the future of MSA 
because we have a “roll up our sleeves” culture; a strong,
deep and experienced management team; and dedicated
hard-working MSA associates who share a common
bond — a personal commitment to the mission and
principles that have propelled the global growth and
success of MSA for almost a century. Much has changed
at MSA since I joined the Company in 1981, but my vision
stays true to MSA’s vision — “That men and women
may work in safety and that they, their families and their
communities may live in health throughout the world.”  

I want to extend my thanks to the many people of MSA
who are working around the world to build a strong
foundation for the future of our company. I also want to
thank the Board of Directors for their stewardship of
the company, and our Executive Leadership team for
their tireless efforts and support. I am proud to lead
this great company and I am honored to work with the
best people in the safety industry.  

Finally, I want to thank our distributors and customers
around the world for your continued loyalty to MSA, and
our shareholders. MSA is focused on enhancing long-
term value for our customers and for our shareholders
in the years to come.

Sincerely,

William M. Lambert
President and Chief Executive Officer

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2008
A YEAR 
IN REVIEW

With hundreds of patents and thousands of
products, MSA remains committed to protecting
the health and safety of people in all kinds of
settings, who face all kinds of hazards. Our
focus on advanced technology and innovation
helped us achieve record sales in 2008 as 
MSA, for the first time in our 95 year history,
exceeded $1 Billion in annual revenue. In fact,
more than one-third of MSA’s global sales in
2008 were from products introduced within
the last three years, demonstrating great 
success in our focus on developing innovative,
value-based, customer-desired products.
PRODUC T INNOVATION: THE LEADING EDGE OF SAFET Y

In 2008, MSA continued its tradition of safety innovation
with the introduction of several new products that 
enhance performance, reliability and ultimately worker
protection. In short, MSA met the ever-changing needs
of our customers in key markets around the world by
doing what we do better than anyone in our industry —
develop increasingly sophisticated safety technology
that is highly dependable, cost-effective and easy to use.

Backed by our dedication to listening to the voice of the
customer, world-class capabilities in R&D, our advanced
manufacturing processes and our deep and long-term
expertise in safety, MSA launched a number of new
products that met stringent certification standards and
the expectations of the men and women who depend on
MSA to protect them on the job every day.

Major new products launched in 2008 included:

•  The Altair® 4 and Altair® 5 Multigas Detectors. These
next-generation portable gas-detection instruments are
more rugged and durable than competitive devices, with
enhanced safety features and advanced technology.
The pocket-size, four-gas Altair 4 Detector provides
an ideal safety solution for workers in the oil, gas,
petrochemical, chemical, first responder and industrial
markets. Easy to wear and use, MSA offers several
versions of these next-generation devices, ranging 

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M S A   A N N U A L   R E P O R T   2 0 0 8

from one that is value-priced to another that incorporates
MSA’s advanced MotionAlert and InstantAlert tech-
nology. MotionAlert automatically alerts others if the
user becomes disabled due to unforeseen hazards,
and InstantAlert allows the user to manually activate
all alarms in an emergency situation, if necessary.

Based on strong customer acceptance of the Altair 4
Detector in 2008, MSA named this innovative device its
“Product of the Year.”  Its sister product, the Altair 5
Detector, offers the same rugged durability with the
ability to measure up to five atmospheric hazards,
making it ideal for confined space and industrial 
hygiene applications in a wide range of industries, 

Designed to 
be more rugged 
and durable than 
competitive devices, 
the Altair® 4 and Altair® 5
Multigas Detectors 
received simultaneous 
global acceptance, with 
sales almost evenly split between 
North America and International, thereby 
capturing both traditional and emerging markets. 

including oil, gas, petrochemical, marine and mining.
The Altair 5 Multigas Detector comes standard with the
MotionAlert and InstantAlert features; but it’s also
equipped with an enhanced graphical user interface
that includes a high-resolution color display and more
than 15 pre-programmed languages, making it a truly 
global product.    

•  The Firehawk® M7 Responder® Air Mask. This 

innovative, multi-function respirator was designed to
meet the specific needs of United States Air Force 
firefighters who face a unique set of challenges and
dangers. On any given day, Air Base fire brigades may
face burning jet fuel, help fight forest fires, be called
upon to battle a structure fire in Iraq or respond to a
crisis involving chemical or biological weapons. The
Firehawk M7 Responder Air Mask allows Air Force
personnel to tackle each of these challenges because
it’s actually three respirators in one: it combines the
state-of-the-art capabilities of an MSA self-contained
breathing apparatus (SCBA) for conventional firefighting
with those of a powered air-purifying respirator and
gas mask. The U.S. Air Force ordered 11,000 of our 
M7 Responder Air Masks for shipment in 2008.

•  The Defender® Visor. This fully retractable eye 

protection system (shown above) is the first of its
kind in North America. Designed to integrate with new
and traditional versions of MSA Cairns® fire helmets,

the Defender Visor provides a greater level of eye 
protection from dust, dirt and grit. Innovative and
low-profile in design, its ability to retract means it’s
there when firefighters need it and out of sight when
they don’t. In 2008, the Defender Visor helped MSA gain
market share in the highly competitive fire helmet
segment. Since its introduction, approximately one-third
of our MSA Cairns Fire Helmet customers have specified
this market-leading feature. And, the number of customers
selecting the MSA Defender Visor continues to grow
every month.

• The motionSCOUT™ Personal Alert Safety System(PASS).
A next-generation stand-alone device,
the motionSCOUT PASS sounds an
alarm when a firefighter is down
or becomes disabled. While many
PASS systems today are integrated
into the electronics of an SCBA,
MSA designed this new product
as a highly reliable, lower-cost
alternative for the global market.

The motionSCOUT PASS provides 
increased durability in extreme environ-

ments and greater ease of use with a 
significant cost reduction, as well as a solid state 
motion sensor for improved reliability. In 2008, the
product was well received by customers, with nearly
10,000 units sold.  

• Thealpha™ Personal Network. A new electronic personal
monitoring and alarm system, the alpha Personal
Network was designed for the European fire service to
improve fire ground management. Deploying many
innovative features, the alpha Personal Network consists
of the alphaSCOUT monitor, a wireless Integrated Control
Unit to monitor firefighter motion and cylinder pressure;
the alphaHUD, which provides cylinder pressure status
and battery life information within a firefighter’s field
of vision; the alphaBASE, a receiver for fire ground
management; the alphaTAG, enabling firefighters to
identify themselves and transmit data back to incident
command; and the alphaCONTROL, MSA’s unique
monitoring software providing complete incident data
that is automatically logged and analyzed.

During the year, MSA also strengthened its air-purifying
respirator offerings with the successful roll-out of the
OptimAir®TL Powered Air-Purifying Respirator (PAPR).
Integrating engineering expertise and technology from
Europe and North America, MSA created the OptimAir TL
PAPR to be the most advanced product of its kind. 
Designed primarily for the North American market, this
breakthrough respirator stands out as the pinnacle in
PAPR performance. The OptimAir TL PAPR enhances
safety by providing an automatically-activated cartridge
switch that sets blower speed and optimizes battery
run time. It even includes an internal pressure switch
that adjusts flow rates for varying altitudes. In 2008,

customers who purchased the OptimAir TL PAPR included
the City of Chicago, Department of Public Health; the 
Department of Energy’s Hanford Reservation; and 
Newport News Shipbuilding.

Other key MSA product introductions over the past year
included the smartCHECK™ System, a modular, automated
test bench designed for the German Army to check the
performance of an SCBA; the Advantage® 4000 Full-Face
Respirator that appeals to broader international markets;
the Evolution® 5800 Thermal Imaging Camera for 
the global fire service market; the G3 Gendarmerie 
Helmet for local and national police forces in France; the
GasGard® XL Monitor for off-the-shelf monitoring, and
the Workman® PFL, a personal fall arrest device that 
provides users freedom of movement while significantly
limiting freefall distance.

The Evolution® 5800 TIC, with 2x digital zoom, provides 
best-in-class image quality in all temperatures displaying 4x
the information of previous TIC designs. 

EVERY LIFE HAS A PURPOSE

ROSE CONLEY
Homeowner, Gardener, Grandmother
Painesville, Ohio

“I’m not your sit-in-the-rocking-chair type person,” said Rose Conley, who
turned 82 at the beginning of 2009.

As soon as the weather turns warm she’ll fire up the lawnmower and cut
her grass — but not before donning a brand new MSA half-mask respirator. 

“I’m allergic to dust and pollen,” she explained.

Unlike Rose, the Respirator she’d worn for years was showing its age.
She tried a “painter’s mask” but knew that it didn’t seal well.

So she called MSA Customer Service. Realizing a replacement was long
overdue, MSA issued her a free Advantage® 200 Respirator.

“It’s absolutely wonderful,” she said, “it’s nice and tight around my nose
and mouth.  No unfiltered air gets in, just what I’m supposed to breathe.”

“The kids get a big charge out of it,” she added.  “My granddaughter says,
‘Nana, you look just like a lady from outer space.’”  

The Advantage 200 Respirator protects Rose from harmful allergens, so
she can spend time making lasting memories with her grandchildren.

M S A   A N N U A L   R E P O R T   2 0 0 8

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ENHANCING PERFORMANCE THROUGH 
OPERATIONAL EXCELLENCE

AT MSA, WE CONTINUE TO STRIVE TO BECOME A TRULY BESTINCLASS GLOBAL 
ORGANIZATION WITH THE BEST PEOPLE, BEST PRODUCTS, BEST PROCESSES, BEST
TECHNOLOGY AND BEST SAFETY PRACTICES IN OUR INDUSTRY.

In 2008, MSA took major steps to enhance our 
operational performance and optimize our processes to
deliver even better products for MSA customers through-
out the world. One of MSA’s most important initiatives
during the year was the first phase of our wall-to-wall
conversion to Demand Flow Technology throughout our
global Operational Excellence organization.

Demand Flow Technology (DFT) is a business process
that makes manufacturing operations more flexible, 
responsive and predictable. DFT and its systematic,

quantitative methodology helps provide more accurate
demand management, more efficient asset and inventory
management, and more reliable customer fulfillment.
DFT also enables our factories and warehouses to 
respond faster to the needs of our customers while 
reducing inventories. 

The conversion to DFT at some of our international
manufacturing facilities in Australia, Brazil, China and
South Africa is already underway producing encouraging
results, including product cost reductions, lower cycle

times, improved customer delivery, increased productivity,
and improved inventory turns. To date, MSA has trained
more than 450 global associates in DFT and will continue
the global conversion throughout 2009 focusing on
North America and Europe.

MSA also launched other initiatives during the year to
achieve operational excellence, including establishing a
process to consistently measure all of our global factories
on select key performance indicators. This process now
enables MSA to benchmark and compare each of our
facilities and identify specific areas where we need to
improve to achieve our goals of operational excellence. 

In addition, MSA began using comparable global costing
processes in North America, Europe and China, as well

EVERY LIFE HAS A PURPOSE

DAVID KAZMIERCZAK
Firefighter, Husband, Father
Buffalo, New York

Firefighter David Kazmierczak and Rescue 1 in Buffalo, New York, routinely
respond to various life threatening situations, including structure fires,
hazardous material spills, and automobile accidents, among others.
Never did he think that while responding to a call that he would become
the one needing rescued.  

Kazmierczak was seated on a bench in the rear of one of the department’s
response vehicles, a boxy 1989 Pierce. The truck once served as a mobile
command station and had a steel desktop built into the forward wall.

“A car failed to yield,” recounted firefighter Kazmierczak, “and went
through the light in front of us. Our driver hit the breaks to avoid a collision.”

The sudden deceleration threw Kazmierczak forward. His head hit first,
crashing into the corner of the desk, bending and cracking the side brim of
his Cairns® N5A Helmet. Then his body slammed into the steel plated wall.

“We were traveling about 35-40 miles per hour,” he recalled. “Basically it
was like I got hit by a car while traveling in reverse.”

The emergency room physician told him that if he didn’t have that helmet
on, his injuries would have been fatal.

MSA’s Cairns N5A Helmet saved firefighter Kazmierczak so he could go home
to his wife and 14-year old son, and continue protecting the citizens of Buffalo.

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THE WINWIN BENEFITS OF 
DEMAND FLOW TECHNOLOGY
New Methodology Drives Improvements at MSA do Brasil

AS ONE OF OUR FIRST OPERATIONS TO CONVERT TO DEMAND FLOW TECHNOLOGY
DFT, MSA DO BRASIL HAS ACHIEVED DRAMATIC IMPROVEMENTS AT ITS 
FACTORY IN SÃO PAULO. Using DFT and its systematic, quantitative methodology, 
São Paulo has improved inventory; eliminated most backorders in key products; and 
increased productivity by manufacturing hearing protection, air-purifying respirators
and chin straps on an innovative “mixed model line.”

DFT has made it possible for São Paulo
to increase its per-shift output of
chin straps and hearing protection
30-40%, meaning the same number of 
employees, working the same number
of hours, are producing 30-40% more
units. Thanks to DFT, São Paulo is also
producing chin straps and hearing
protection at sharply lower variable
costs while using less factory floor space.

The successful implementation of DFT
at São Paulo earned our team in Brazil
the well-deserved recognition in 2008
as MSA  “Process of the Year.”  

DFT at work in Brazil.

as global processes to enhance the utilization of our manufacturing
assets in ways that increase our return on those assets. We also 
implemented best practices for global sourcing, front-end logistics
and inventory management.  

Overall, MSA remains focused on achieving higher performance levels
in our business for our customers, to give the company a sustainable
competitive advantage that we believe will strengthen customer 
satisfaction and, ultimately, customer loyalty.

A key element in our continuing drive to achieve operational excellence
is Project Magellan. A multi-year endeavor that was announced in
January 2007, Project Magellan is aligning MSA’s resources and 
manufacturing footprint to reduce costs and efficiently meet the
needs of customers in key markets and regions with growth potential,
like China and Mexico.  

As an example, MSA opened a state-of-the-art manufacturing, 
warehouse and R&D center in Suzhou, China at the end of 2008 —
our second manufacturing facility in that growing market. As a new
hub for our business activity in China, the 172,000 square-foot
Suzhou facility marks MSA’s largest overseas investment in recent
years and serves as one of the largest producers of safety equipment
in China. Accordingly, the new facility in Suzhou will manufacture
self-contained breathing apparatus, portable and permanent 
instruments, fall protection equipment, and other safety products 
for the general safety market. In addition, MSA also made investments
to improve and modernize our manufacturing facilities in Sydney,
Australia, and São Paulo, Brazil, in 2008.

Marking 50 years of doing business in Mexico, MSA continued to
strengthen our operational excellence capabilities by opening a new
77,000 square-foot facility in Querétaro at the end of 2007. As one of
the company’s premier manufacturing sites, this key facility in Mexico
is producing head protection products, fall protection equipment and
instrumentation, especially for North American customers in the 
Construction and Oil, Gas and Petrochemicals market. 

The Workman® Harness is one of the principal products manufactured at MSA’s
new facility in Querétaro, Mexico.

Overall, 93% of the products that MSA manufactures in Brazil have been converted to DFT,
resulting in greater manufacturing efficiency and quicker inventory turns.

MSA do Brasil has achieved outstanding DFT results by improving manufacturing efficiency,
inventory management and order fulfillment and has paved the way for similar success 
in the future as MSA continues to implement DFT throughout our global Operational 
Excellence organization.

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MSA’s focus on boosting efficiency and reducing costs
while improving deliveries and customer satisfaction
included streamlining our North American staff by 
approximately 8% in early 2009 by instituting a hiring-
freeze, and by offering a voluntary retirement incentive
program. In light of the continuing global economic
slowdown, this was a necessary step for MSA. Our goal
is to be as competitive and responsive as possible while
exceeding our customers’ expectations for quality,
product performance and value.  

At MSA, improvement is truly a continuing process, 
regardless of economic cycles. Our people are dedicated
to this improvement, as well as achieving operational
excellence and striving to do the best for our customers
around the globe.

MSA’s new state-of-the-art manufacturing facility in Suzhou, China opened in January 2009.  
It will serve as a new hub for business activity there.

The conversion to DFT is already underway at some of our international manufacturing facilities, including Australia. Shown above is MSA’s office in Sydney.

ENHANCING PERFORMANCE THROUGH 
OPERATIONAL EXCELLENCE CONT.

Under Project Magellan, MSA also continued to relocate
and consolidate certain manufacturing activities as
part of our long-term strategy to reduce costs, improve
operating margins, enhance our competitiveness in key
product areas, and strengthen customer relationships by
providing the best value in sophisticated safety products.

This strategic manufacturing reconfiguration included
shifting most of the production of gas masks and other
respiratory protection products at our facility in Evans
City, Pennsylvania to other MSA facilities in the United

States. MSA also shifted fire helmet production from
the company’s facility in Clifton, New Jersey to our
plant in Jacksonville, North Carolina, resulting in the
closure of the Clifton site in late 2007.  

In all, MSA operated 8 manufacturing facilities in
North America in 2008 that employed approximately
1,500 associates at year end. In the rest of the world,
MSA operated 9 additional manufacturing sites 
employing approximately 2,100 people.

MSA employees in Berlin assemble the 3S Mask using DFT
processes. Recognized for its comfort and classic design, the 3S
Mask is an air-purifying device that has more than 5 million
units in service.

This new facility in Mexico, which had more than 160
employees at the end of 2008, consolidates previous
MSA operations in Torreón and Mexico City, and enables
MSA to more effectively support and serve our customer
and distributor base in Mexico, where MSA has experi-
enced dynamic sales growth over the past five years.

EVERY LIFE HAS A PURPOSE

MARY CLARE SHIBER PHD. 
& LUCINDA
Chemist, Volunteer EMT-B, Animal Caregiver
Wayne, New Jersey

By day Mary Clare Shiber is a scientist.  By night she rides the streets of
Wayne, New Jersey responding to distress calls as a volunteer EMT-B.
One night, she nearly sent one herself.

As a volunteer EMT-B she responded to a cardiac call; an elderly woman
unconscious in her bed. Shiber and her partner administered oxygen and
moved the patient to the floor to begin CPR. It was then that Shiber
began to feel the symptoms of carbon monoxide poisoning.

Her partner, sensing something was wrong, ordered them to evacuate.
They picked up the patient and raced to the hospital, administering CPR
along the way. In the back of their minds was an important lesson.

“You  never  know  what  you’re  walking  into,”  explained  Dr.  Shiber. 
“If  we’d  had  CO  detectors,  we’d  have  just  grabbed  the  patient  and 
transported her.”

After  that  call  the  squad  equipped  all “jump  kits”  with  Altair®  Pro 
Single-Gas CO Detectors.

The new Altair Pro CO Detectors are helping to ensure that Clare and 
her team know exactly what they’re walking into when responding to a
call, allowing her to come home and care for what gives her one of her
greatest joys in life – her dog Lucinda.

Marking 50 years of doing business in Mexico, MSA opened its 77,000 sq. ft. facility in Querétaro at the end of 2007.

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DRIVING GLOBAL GROW TH IN KE Y MARKETS 

AS  THE  SAFETY  COMPANY FOR  PEOPLE  AROUND  THE  WORLD,  MSA  IN  2008 
CONTINUED TO DRIVE GROWTH IN THE KEY MARKETS THAT ARE AT THE CORE 
OF OUR MISSION.

In 2008, MSA reported record global sales of $1.1 billion,
with sales outside North America reaching 48%, as the
company continued to target geographic markets
around the world with growth potential.  

Since MSA’s founding in 1914, the company has been
dedicated to protecting workers with the best safety
equipment that meets their various and specific needs
and requirements. Over the years, MSA has expanded
and strengthened our business, our  “best-in-class” and
“first-to-market” product lines, and our manufacturing
capabilities to become a truly global safety company.
Today, MSA is focused on serving key worldwide markets, 

including: Fire Service; Oil, Gas and Petrochemical; Law
Enforcement; Military and Construction. MSA also meets
the safety needs of workers in the Utilities, Manufacturing,
HVAC and Hazardous Materials Remediation markets. In
geographic markets outside of North America, such as
South Africa and China, MSA also continues to serve the
mining industry, the market that was the first to benefit
from our protective equipment when the company was
founded 95 years ago. 

Despite the challenging global economic slowdown,
MSA continued to grow the MSA brand in markets such
as China, Europe, South America and Africa. Overall,
sales from our European and International segments
finished the year up more than 18% and 9%, respectively.
Ten of MSA’s 19 international affiliates each achieved
sales growth of at least 20% for the year.  

EVERY LIFE HAS A PURPOSE

SGT. ROY MITCHELL
U.S. Army Sgt.
U.S. Army

One of the last things that Sgt. Roy Mitchell remembers before waking
up in a Bethesda Naval Hospital was breaching a courtyard in the
Diyala River Valley in Iraq. Mitchell, the second man in, was running
through the doorway when a band of insurgents opened fire.

The bullet that hit Mitchell came from a rooftop across the street. It
hit his Advanced Combat Helmet (ACH) about two and a half inches
above his right ear, cracking his skull. After skimming his occipital
lobe, it left through the same crack.

It was a lucky break. His doctors told him that the crack prevented 
the formation of a gaping exit wound and saved his life. They also
said that without the ACH, the force of the round would have been
instantly fatal.

“I owe my life to it,” he said, “it slowed the bullet down and saved me.”

He also credits the soldiers who dragged him to safety.

“As much as the helmet you guys make saved me from the round,” 
he recalls, “they hooked me up with good medical care.”

These  soldiers  completed  their  tours  and  came  home.  Mitchell
needed two years to recover before returning to Iraq in the winter 
of 2008.

MSA’s ACH saved Sgt. Mitchell on the front lines of war so he can con-
tinue to do what he loves – serve his country and protect freedom.

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M S A   A N N U A L   R E P O R T   2 0 0 8

manufacturing this advanced helmet since 2002,
when the company first partnered with the U.S. Army
on its development. The ACH incorporates a lightweight
design that offers soldiers advanced ballistic protection
with greater comfort, stability and situational awareness.
Since its adoption by the Army as the standard of
issue, this helmet has been credited with saving the
lives of many U.S. troops in Iraq and Afghanistan.  

• Canadian National Defense Forces – Nearly $7 million

in orders for our CG634 ballistic helmets. 

• U.S. Air Force – $24.6 million in contracts to supply the
Firehawk® M7 Responder® Air Mask to air base fire
brigades. This newly developed SCBA provides a three-
way, long-duration respiratory protection solution that
exceeds the latest National Fire Protection Association
(NFPA) performance standards with approved protection
from chemical, biological, radiological and nuclear
(CBRN) contaminants.  

• German Federal Defense Forces – $19.2 million (€15
million) in orders to supply self-contained breathing
apparatus (SCBA), M2000 gas masks and other 
safety products. 

Fire Service
• Vienna (Austria) Fire Brigade – A $1.3 million (€1 million)

order for F1® Fire Helmets.

• Hong Kong Fire Brigade – A $4.5 million SCBA order. 

Law Enforcement
• Canadian Corrections Department – A $4.4 million

contract for our Firehawk® M7 Air Masks. 

• French Police Forces – A $15.3 million (€12 million)

order, over three years, for 40,000 G3 Gendarmerie riot
helmets, and a $6 million (€4.7 million) order for 2,000
ballistic vests, reflecting superb teamwork between
our U.S.-based Paraclete body armor business and our
customer focus team in France.

Illustrating the growth potential for MSA’s head protection
products, the company received a 3-year order for 40,000 G3
Gendarmerie riot helmets for the police forces in France.

Oil, Gas and Petrochemical
• PEMEX – A $6 million contract to supply flame and gas
detection monitoring systems to Mexico’s state-owned
petroleum company.

In 2008 MSA secured a $1.3 million order from the Vienna Fire
Brigade for F1® Fire Helmets.

In 2008, MSA received a $4.5 million order for self-contained
breathing apparatus (SCBA) from the Hong Kong Fire Brigade.

In North America, our largest geographic market, sales
increased 16%, reflecting in part the strong performance
of our manufacturing, sales and new product development
teams. One of the most impressive performances in North
America was in Mexico, where MSA has achieved a 
cumulative annual growth rate of 22% over the past 
five years. 

Driving our global growth were several major new contracts
and orders in our key markets. In 2008, these included: 

Military
• The U.S. Army – $29 million in new contracts to supply

Advanced Combat Helmets (ACH). MSA has been 

The Oil, Gas & Petrochemical market continues to be a growth driver for MSA. In early 2008 MSA secured a $6 million contract from
PEMEX for flame and gas monitoring systems.

M S A   A N N U A L   R E P O R T   2 0 0 8

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MSA Form 10K Starts Here

Every Life Has a Purpose

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PRINCIPAL OPERATIONS

North America

International

Comsacol Ltda., Bogota, Columbia

MSA de Argentina S.A., Buenos Aires

MSA (Aust.) Pty. Ltd., Sydney

MSA (Australia), Auckland, New Zealand (Branch Office)

MSA do Brasil Ltda., São Paulo

MSA de Chile Ltda., Santiago

MSA (China) Safety Equipment Co., Ltd., Suzhou

MSA Egypt LLC, Cairo

MSA Hong Kong Ltd., Hong Kong

MSA (India) Limited, Calcutta

MSA Indonesia Ltd., Jakarta

MSA Japan Ltd., Tokyo

MSA Safety Malaysia Sdn Bhd, Kuala Lumpur

MSA Middle East, Abu Dhabi, U.A.E.

MSA Middle East FZE, Dubai, U.A.E.

MSA del Peru S.A.C., Lima

MSA S.E. Asia Pte. Ltd., Singapore

MSA Select Ltd., Kitwe, Zambia

MSA (Suzhou) Safety Equipment Research and 

Development Co., Ltd., Suzhou, China

MSA (Thailand), Limited, Bangkok

Samsac Holding (Pty.) Limited, Johannesburg

Wuxi-MSA Safety Equipment Co., Ltd., Wuxi, China

Corporate Headquarters – Pittsburgh, Pa.

U.S. Manufacturing – Bowling Green, Ky; 

Cranberry Twp., Pa.; Englewood, Co.; Evans City, Pa.; 

Jacksonville, N.C.; Murrysville, Pa.; Newport, Vt.; 

St. Pauls, N.C.

Research – John T. Ryan Memorial Laboratory,

Cranberry Twp., Pa.

MSA Canada Inc., Toronto; Edmonton

MSA de Mexico, S.A. de C.V., Querétaro

Europe

MSA Europe GmbH (Headquarters), Berlin, Germany

Mine Safety Hungary Ltd., Budapest, Hungary

Mine Safety Romania S.R.L., Bucharest, Romania

Mine Safety Sp. z o.o., Raszyn, Poland

MSA-Auer GmbH, Berlin, Germany

MSA-Auer GmbH, Czech o.z., Praha, Czech (Service Center)

MSA-Auer GmbH Romania, o.z., Bucuresti, Romania (Branch)

MSA-Auer GmbH, Slovakia o.z., Pezinok, Slovakia (Service Center)

MSA-Auer Kiev, Kyiv, Ukraine (Representative Office)

MSA-Auer Miskolc, Tiszaujvaros, Hungary (Service Center)

MSA-Auer Moscow, Moscow, Russia (Representative Office)

MSA-Auer Petrosani, Petrosani, Romania (Service Center)

MSA-Auer Sicherheitstechnik Vertriebs GmbH, Absdorf, Austria

MSA Almay, Almaty, Kazakhstan (Service Center/Office)

MSA Azerbaijan, Baku (Registered Office)

MSA Belgium, N.V., Lier

MSA (Britain) Limited, Glasgow

MSA Safety, Czech, s.r.o., Ostrava, Czech

MSA Española, S.A.U., Barcelona

MSA Gallet, Chatillon sur Chalaronne, France; Mohammedia, Morocco

MSA Italiana S.p.A., Milan

MSA Nederland, B.V., Hoorn

MSA Nordic, Malmo, Sweden

MSA Poznan, Poznan, Poland (Service Center)

MSA Schweiz GmbH, Oberglatt, Switzerland

MSA Serbia, Belgrade (Registered Office)

MSA Sordin AB, Varnamo, Sweden

MSA Szczecin, Szczecin, Poland (Service Center)

DIRECTORS AND CORPORATE OFFICERS

Board of Directors

John T. Ryan III (1)

Officers

William M. Lambert

Chairman of the Board; Retired (2008); formerly Chief Executive Officer of the Company

President and Chief Executive Officer

Robert A. Bruggeworth (2) 

President and Chief Executive Officer, RF Micro Devices, Inc. (high-performance 
radio systems and applications that drive mobile communications); Director, RF Micro
Devices, Inc.

James A. Cederna (2) (3) (4)

Roberto Cañizares 

Executive Vice President; President, MSA International

Dennis L. Zeitler

Senior Vice President; Chief Financial Officer and Treasurer

Joseph A. Bigler

Owner and President, Cederna International, Inc. (executive coaching)

Vice President; President, MSA North America 

Thomas B. Hotopp (3) (4)

Retired (2003); formerly President of the Company

William M. Lambert (1)

President and Chief Executive Officer of the Company

Diane M. Pearse (2)

Chief Financial Officer, Crate and Barrel (home furnishings retailer)

L. Edward Shaw, Jr. 

Senior Managing Director, Breeden Capital Management LLC and its affiliates (investment
management and multi-disciplinary professional services firm); Director of HealthSouth
Corporation; Director of H&R Block, Inc.

John C. Unkovic (3) (4)

Partner and General Counsel, Reed Smith LLP (full service law firm)

Thomas H. Witmer (1) (2) (3)

Retired (1998); formerly President and Chief Executive Officer, Medrad, Inc. 
(manufacturer of medical devices)

Kerry M. Bove

Vice President, Global Operational Excellence

Ronald N. Herring, Jr.

Vice President, Global Product Leadership

Douglas K. McClaine

Vice President; Secretary and General Counsel

Stephen C. Plut

Vice President; Chief Information Officer

Paul R. Uhler

Vice President, Global Human Resources

(1) Member of Executive Committee
(2) Member of Audit Committee
(3) Member of Compensation Committee
(4) Member of Nominating and Corporate

Governance Committee

Section 302 Certifications and NYSE 
CEO Certification

In June 2008, the Company’s Chief Executive Officer submitted to the New York Stock
Exchange the annual certification as to compliance with the Exchange’s Corporate
Governance Listing Standards required by Section 303A.12(a) of the Exchange’s Listed
Company Manual. The certification was unqualified. 

The Company’s reports filed with the Securities and Exchange Commission during the
past year, including the Annual Report on Form 10-K for the year ended December 31,
2008, have contained the certifications of the Company’s Chief Executive Officer and
Chief Financial Officer regarding the quality of the Company’s public disclosure required
by Section 302 of the Sarbanes-Oxley Act.

Shareholders’ Inquiries
Additional copies of the company’s 2008 Annual Report, including Form 10-K,
as filed with the Securities and Exchange Commission, may be obtained by
shareholders after April 1, 2009. Printed and electronic versions are available.
Requests should be directed to the Chief Financial Officer, who can be reached
at one of the following:

Phone:
Fax:
Internet:
U.S. Mail:

412-967-3046
412-967-3367
MSAnet.com
MSA
Chief Financial Officer
P. O. Box 426
Pittsburgh, PA 15230

09155 MSA 2008 AR FOR WEB:Layout 1  3/25/09  11:43 AM  Page 18

Mine Safety Appliances Company

121 Gamma Drive
RIDC Industrial Park
O’Hara Township
Pittsburgh, PA 15238

412-967-3000
www.MSAnet.com

00065605