MSA Safety
MSA
#2505
Rank
A$9.53 B
Marketcap
A$243.58
Share price
-1.53%
Change (1 day)
1.97%
Change (1 year)

MSA Safety - 10-Q quarterly report FY


Text size:
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934


For the quarter ended June 30, 1999 Commission File No. 0-2504


MINE SAFETY APPLIANCES COMPANY

(Exact name of registrant as specified in its charter)



Pennsylvania 25-0668780

(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)



121 Gamma Drive
RIDC Industrial Park
O'Hara Township
Pittsburgh, Pennsylvania 15238

(Address of principal executive offices) (Zip Code)


Registrant's telephone number, including area code: 412/967-3000


Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months and (2) has been subject to such filing requirements for
the past 90 days.


Yes X No


As of July 31, 1999, there were outstanding 4,888,525 shares of common stock
without par value, including 570,420 shares held by the Mine Safety Appliances
Company Stock Compensation Trust.
PART I  FINANCIAL INFORMATION
MINE SAFETY APPLIANCES COMPANY
CONSOLIDATED CONDENSED BALANCE SHEET
(Thousands of dollars, except share data)
<TABLE>
<CAPTION>
June 30 December 31
1999 1998
<S> <C> <C>
ASSETS
Current assets
Cash $ 10,511 $ 10,084
Temporary investments, at cost plus accrued interest 11,461 13,936
Accounts receivable, less allowance (1999 - $3,078;
1998 - $3,004) 95,723 94,850
Inventories:
Finished products 40,194 36,956
Work in process 13,479 12,445
Raw materials and supplies 39,307 36,090
---------- ----------
Total inventories 92,980 85,491
---------- ----------
Other current assets 23,406 24,848
---------- ----------
Total current assets 234,081 229,209
---------- ----------

Property, plant and equipment 370,639 371,687
Accumulated depreciation (207,724) (207,126)
---------- ----------
Net property 162,915 164,561
---------- ----------

Prepaid pension cost 47,245 46,162
Other assets 19,083 16,784
---------- ----------
TOTALS $ 463,324 $ 456,716
========= ===========
</TABLE>
<TABLE>
<S>
LIABILITIES AND SHAREHOLDERS' EQUITY
<S> <C> <C>
Current liabilities
Notes and accounts payable $ 78,473 $ 68,416
Federal, foreign, state and local income taxes 2,961 991
Other current liabilities 46,606 40,599
--------- -----------
Total current liabilities 128,040 110,006
--------- -----------

Long-term debt 12,151 11,919
Pensions and other employee benefits 58,139 60,550
Noncurrent liabilities and deferred credits 31,630 31,395

Shareholders' equity
Preferred stock, 4-1/2% cumulative - authorized
100,000 shares of $50 par value; issued 71,373
shares, callable at $52.50 per share 3,569 3,569
Second cumulative preferred voting stock - authorized
1,000,000 shares of $10 par value; none issued
Common stock - authorized 20,000,000 shares of no par
value; issued 6,779,231 and 6,779,231 (outstanding
4,318,252 and 4,378,874) 12,591 12,591
Common stock compensation trust - 571,690 and 571,690 (26,869) (26,869)
shares
Less treasury shares, at cost:
Preferred - 49,313 and 49,313 shares (1,595) (1,595)
Common - 1,889,289 and 1,828,667 shares (93,265) (89,521)
Deferred stock compensation (753) (951)
Accumulated other comprehensive (loss) (15,029) (10,240)
Retained earnings 354,715 355,862
--------- -----------
Total shareholders' equity 233,364 242,846
--------- -----------
TOTALS $ 463,324 $ 456,716
========= ===========
</TABLE>

See notes to consolidated condensed financial statements
MINE SAFETY APPLIANCES COMPANY
CONSOLIDATED CONDENSED STATEMENT OF INCOME
(Thousands of dollars, except earnings per share)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30 June 30

1999 1998 1999 1998
<S> <C> <C> <C> <C>
Net sales $ 123,675 $ 125,557 $ 239,642 $ 248,965
Other income 19 3,077 615 3,890
---------- ---------- ---------- ----------
123,694 128,634 240,257 252,855
---------- ---------- ---------- ----------
Costs and expenses
Cost of products sold 78,224 79,455 152,157 159,304
Selling, general and administrative 32,961 35,573 65,363 68,586
Special pension charges/(credits) 4,608 4,608 (3,993)
Depreciation and amortization 5,696 5,865 11,249 11,278
Interest 1,021 764 1,764 1,410
Currency exchange (gains)/losses (77) 21 (354) 168
---------- ---------- ---------- ----------
122,433 121,678 234,787 236,753
---------- ---------- ---------- ----------

Income before income taxes 1,261 6,956 5,470 16,102
Provision for income taxes 524 2,154 2,163 5,812
---------- ---------- ---------- ----------
Net income $ 737 $ 4,802 $ 3,307 $ 10,290
========== ========== ========== ==========

Basic earnings per common share $ 0.16 $ 1.08 $ 0.75 $ 2.31
========== ========== ========== ==========

Diluted earnings per common share $ 0.16 $ 1.07 $ 0.75 $ 2.30
========== ========== ========== ==========

</TABLE>

See notes to consolidated condensed financial statements
MINE SAFETY APPLIANCES COMPANY
CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS
(Thousands of dollars)
<TABLE>
<CAPTION>
Six Months Ended
June 30

1999 1998
<S> <C> <C>
OPERATING ACTIVITIES
Net income $ 3,307 $ 10,290
Depreciation and amortization 11,249 11,278
Deferred taxes,pensions, and other non-cash
charges/(credits) (970) (7,845)
Gain on divestitures (2,488)
Changes in operating assets and liabilities (2,426) 5,209
Other - principally currency exchange adjustments (4,376) (1,186)
--------- ---------
Cash flow from operating activities 6,784 15,258
--------- ---------
INVESTING ACTIVITIES
Property additions (11,323) (14,524)
Property disposals, net 187 466
Net proceeds from divestitures 22,865
Other investing (5,395) (3,571)
--------- ---------
Cash flow from investing activities (16,531) 5,236
--------- ---------
FINANCING ACTIVITIES
Additions to long-term debt 366 119
Reductions of long-term debt (9) (361)
Changes in notes payable and short term debt 15,088 12,177
Cash dividends (2,779) (2,920)
Company stock purchases and sales - net (3,744) (284)
--------- ---------
Cash flow from financing activities 8,922 8,731
--------- ---------
Effect of exchange rate changes on cash (1,223) (2,439)
--------- ---------
Net(decrease)/increase in cash and cash equivalents (2,048) 26,786
Beginning cash and cash equivalents 24,020 19,921
--------- ---------
Ending cash and cash equivalents $ 21,972 $ 46,707
========= =========
</TABLE>
See notes to consolidated condensed financial statements
MINE SAFETY APPLIANCES COMPANY
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS


(1) The Management's Discussion and Analysis of Financial Condition and Results
of Operations which follows these notes contains additional information on
the results of operations and the financial position of the company. Those
comments should be read in conjunction with these notes. The company's
annual report on Form 10-K for the year ended December 31, 1998 includes
additional information about the company, its operations, and its financial
position, and should be read in conjunction with this quarterly report on
Form 10-Q.

(2) The results for the interim periods are not necessarily indicative of the
results to be expected for the full year.

(3) Certain prior year amounts have been reclassified to conform with the
current year presentation.

(4) In the opinion of management, all adjustments, consisting of only normal
recurring adjustments, necessary for a fair presentation of these interim
periods have been included.

(5) A pre-tax charge of $4.6 million ($2.8 million after-tax) was recognized in
the second quarter of 1999 related to a voluntary retirement incentive
program (VRIP) that was accepted by 82 non-production employees in the
U.S. All VRIP participants had retired as of July 31, 1999. On August 1,
1999, the company made special lump-sum pension benefit payments to certain
participants as part of the VRIP. In third quarter 1999 the company expects
to recognize a pension settlement gain of approximately $5.6 million ($3.4
million after-tax) related to these payments.

(6) Basic earnings per share is computed on the weighted average number of
shares outstanding during the period. Diluted earnings per share includes
the effect of the weighted average stock options outstanding during the
period, using the treasury stock method. Antidilutive options are not
considered in computing earnings per share.


<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30 June 30
1999 1998 1999 1998
<S> <C> <C> <C> <C>
Net income $ 737 $ 4,802 $ 3,307 $ 10,290
Preferred stock dividends
declared 24 13 37 25
-------- --------- -------- --------
Income available to common
shareholders 713 4,789 3,270 10,265
-------- --------- -------- --------
Basic shares outstanding 4,323 4,449 4,342 4,451
Stock options 9 20 10 15
-------- --------- -------- --------
Diluted shares outstanding 4,332 4,469 4,352 4,466
-------- --------- -------- --------
Antidilutive stock options 36 3 36 3
-------- --------- -------- --------
</TABLE>

(7) Comprehensive income/(loss) was ($126,000) and ($1,482,000) for the three
and six months ended June 30, 1999, respectively, and $3,789,000 and
$6,403,000 for the three and six months ended June 30, 1998, respectively.
Comprehensive income includes net income and changes in accumulated other
comprehensive income, primarily cumulative translation adjustments, for
the period.

(8) The company is organized into three geographic operating segments (U.S.,
Europe, and Other non-U.S.), each of which includes a number of operating
companies. There have not been any changes in the basis of segmentation
and measurement of segment profit and loss.

Reportable segment information is presented in the following table:
<TABLE>
<CAPTION>
(In Thousands)
Other Recon- Consol.
U.S. Europe non-U.S. ciling totals
Three Months Ended June 30, 1999
<S> <C> <C> <C> <C> <C>
Sales to external customers $71,244 $27,915 $24,835 ($319) $123,675
Intercompany sales 7,693 4,897 568 (13,158)
Net income(loss) (672) 254 1,171 (16) 737

Six Months Ended June 30, 1999
Sales to external customers 141,442 55,978 42,606 (384) 239,642
Intercompany sales 15,635 9,133 843 (25,611)
Net income(loss) 2,275 (298) 1,312 18 3,307

Three Months Ended June 30, 1998
Sales to external customers 73,127 30,187 23,068 (825) 125,557
Intercompany sales 7,541 3,388 292 (11,221)
Net income(loss) 3,892 (402) 608 704 4,802

Six Months Ended June 30, 1998
Sales to external customers 148,290 57,602 42,391 682 248,965
Intercompany sales 17,062 6,924 784 (24,770)
Net income(loss) 10,651 (786) 988 (563) 10,290

Reconciling items consist primarily of intercompany eliminations and items
reported at the corporate level.
</TABLE>
MINE SAFETY APPLIANCES COMPANY
MANAGEMENT'S DISCUSSION AND ANALYSIS

Forward-looking statements
- --------------------------
This report contains "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. Such forward-looking
statements may include, without limitation, statements regarding expectations
for future product introductions, delivery improvements, cost reduction and
restructuring plans, asset sales, pension settlements, liquidity, sales and
earnings, Year 2000 readiness, and market risk. Actual results may differ from
expectations contained in such forward-looking statements and can be
affected by any number of factors, many of which are outside of management's
direct control. Among the factors that could cause such differences are the
effects of cost reduction efforts, availability of critical materials and
components, the economic environment, Year 2000 readiness of critical third
parties, and interest and currency exchange rates.

Results of operations
- ---------------------

Organizational initiatives
- --------------------------
During the second quarter of 1999 the company recorded pre-tax charges of $4.6
million ($2.8 million after-tax, or 65 cents per basic share) relating to a
voluntary retirement incentive program (VRIP) that was accepted by 82
non-production employees in the U.S. All VRIP participants had retired by July
31, 1999. In the third quarter of 1999 the company expects to recognize a
pre-tax pension settlement gain of approximately $5.6 million ($3.4 million
after-tax, or 79 cents per basic share) related to VRIP lump-sum pension
payments which were made on August 1, 1999. The combined effect of the VRIP
transactions is expected to favorably impact 1999 net income by approximately
$600,000, or 14 cents per basic share. The VRIP is projected to lower pre-tax
annual operating costs by approximately $4.0 million.

In addition to cost improvements from the VRIP, the company is actively
reviewing opportunities to consolidate office facilities in the Pittsburgh area
with two main objectives. One is to further reduce annual operating costs
without compromising customer service or adversely impacting the employment of
MSA associates. The other objective is to meaningfully improve internal
communications and productivity by locating many of the MSA Pittsburgh
management and technical staff in adjacent buildings.

In Europe, substantial organizational changes have recently been implemented
to establish a more integrated approach to business in that area. Over the
past six months, the company's workforce in Europe has been reduced by 50,
which is expected to improve pre-tax operating costs by approximately $2
million annually.

Three months ended June 30, 1999 and 1998
- -----------------------------------------
Sales for the second quarter of 1999 were $123.7 million, a decrease of $1.9
million, or 2%, from $125.6 million last year. Sales in the prior year
included the HAZCO Services, Inc. and Baseline Industries, Inc. business units
until they were divested on June 30, 1998. Excluding these units, second
quarter sales of ongoing businesses increased 4% over the same period in 1998.

Total second quarter 1999 sales of ongoing U.S. operations were 10% higher
than last year. Considerable progress has been made in resolving the delivery
problems which were experienced after the first quarter of 1998. These
problems resulted from the implementation of new computer systems and
relocation of rubber production facilities. Ongoing production levels and
on-time delivery rates have recovered and now exceed levels experienced before
the necessary 1998 projects. Sales of breathing apparatus to the fire service
market have been notably strong. Instrument product sales have decreased
slightly due to delays in new product introductions, some of which are now
coming on-stream. Priority efforts are being focused on completing other
instrument product introductions. Sales of specialty chemicals were somewhat
lower in the quarter, reflecting the timing of large orders. Overall,incoming
commercial orders in the U.S. exceeded shipments in the second quarter. U.S.
Government invoicing of safety products was also strong, and the government
backlog was reduced by the high level of shipments.

European business activity continues to be weak, with overall sales somewhat
below prior year levels. Local currency sales in the company's other
international operations are up from the prior year, which was depressed by
the well-publicized economic problems that particularly affected the Asian
and South American markets. Sales and profitability of MSA Africa have been
boosted by the second quarter 1999 acquisition of Campbell Gardwel, making the
company the largest safety products supplier on the African continent.

Gross profit for the second quarter of 1999 was $45.5 million, a $600,000
decrease from $46.1 million in 1998. The ratio of gross profit to sales was
36.7% in the second quarter of both years.

Lower selling and administration costs in the quarter reflect the absence of
HAZCO and Baseline operations in 1999 and continuing cost control efforts in
the U.S. and Europe.

Lower depreciation and amortization expense in the quarter primarily reflects
the divestitures of the HAZCO and Baseline business units at the end of second
quarter 1998.

Income before income taxes was $1.3 million for second quarter 1999 compared
to $7.0 million last year. Second quarter 1999 results included the
previously-discussed $4.6 million pre-tax charge related to the VRIP. Results
for the 1998 second quarter included a $3.0 million pre-tax gain related to
the divestiture of the HAZCO and Baseline business units. Second quarter
earnings from operations adjusted for the effects of these special items in
both years improved nearly 50%.

The effective income tax rate for the second quarter of 1999 was 41.6%
compared to 31.0% in 1998. The lower second quarter 1998 effective rate
reflected the recognition of tax benefits associated with the divestiture of
the Baseline business unit and a relatively higher proportion of international
earnings.

Net income in the second quarter of 1999 was $737,000, or 16 cents per basic
share, compared to $4.8 million, or $1.08 per basic share last year. Excluding
the after-tax effects of the VRIP charge in 1999 ($2.8 million, or 65 cents
per basic share) and the gain on divestiture of business units in 1998 ($2.5
million, or 57 cents per basic share), net income improved by 54% from last
year.

Six months ended June 30, 1999 and 1998
- ---------------------------------------
Sales for the six months ended June 30, 1999 were $239.6 million, a decrease of
$9.4 million, or 4%, from $249.0 million last year. Sales in the prior year
included the HAZCO Services, Inc. and Baseline Industries, Inc. business units
until they were divested on June 30, 1998. Excluding these units, first half
sales of ongoing businesses increased 2% compared to the same period last year.

Total sales of ongoing U.S. operations for the six months ended June 30, 1999
were 5% higher than last year. The improvement occurred mainly in the second
quarter, reflecting strength in breathing apparatus sales to the fire service
market and safety products in government markets. Instrument product sales
were somewhat lower than last year due to delays in new product introductions.
Sales of specialty chemicals were slightly higher than the prior year.

European sales were generally flat in both local currency and U.S. dollars.
Local currency sales at other international operations improved modestly, but
these gains were largely offset by unfavorable exchange rate movements when
stated in U.S. dollars.

Gross profit for the six months ended June 30, 1999 was $87.5 million, a $2.2
million decrease from $89.7 million in 1998. The 1999 ratio of gross profit to
sales was 36.5% compared to 36.0% last year.

The decrease in selling and administrative costs reflects the absence of the
HAZCO and Baseline operations in 1999, partially offset by higher operating
costs associated with the new enterprise-wide computer system. As discussed
above, specific cost improvement efforts have been completed recently and
additional initiatives are in progress.

Lower depreciation and amortization expense for the six-month period primarily
reflects the divestitures of the HAZCO and Baseline business units at the end
of second quarter 1998.

Income before income taxes was $5.5 million for the six months ended June 30,
1999 compared to $16.1 million in 1998. The 1999 results include the VRIP
charge of $4.6 million and the 1998 results included the $3.0 million gain on
the divestitures of the HAZCO and Baseline business units and a $4.0 million
first quarter pension settlement gain. The pension gain resulted from settling
remaining pension liabilities to former employees from the Esmond, Rhode
Island plant which was closed in 1997. Comparing first half 1999 and 1998,
earnings from operations adjusted for the effects of these special items
improved 11%.

The effective income tax rate for the six months ended June 30, 1999 was 39.5%
compared with 36.1% last year. The lower 1998 rate reflects recognition of tax
benefits associated with the divestiture of the Baseline business unit.

Net income the six months ended June 30, 1999 was $3.3 million, or 75 cents
per basic share, compared to $10.3 million or $2.31 per basic share last year.
Excluding the after-tax effects of the 1999 VRIP charge of $2.8 million, or 65
cents per basic share, and the 1998 gains on sale of business units of $2.5
million, or 57 cents per basic share, and pension settlement gain of $2.4
million, or 55 cents per basic share, net income improved 13% from last year.

Liquidity and Financial Condition
- ---------------------------------
Cash and cash equivalents decreased $2.0 million during the first six months
of 1999 compared with an increase of $26.8 million last year, which included
net proceeds from divestitures of nearly $23 million.

Cash provided by operating activities totaled $6.8 million during the first
half of 1999 compared to $15.3 million last year. The decrease is primarily
related to higher inventory levels in the U.S. in 1999 (inventory levels
decreased in the first half of 1998) and the impact of currency exchange rates
on working capital, principally in Brazil and Germany.

Investing activities used cash of $16.5 million in the six months ended June
30, 1999 compared with providing cash of $5.2 million in 1998. Cash provided
by investing activities in 1998 included the proceeds from the divestitures of
the HAZCO and Baseline business units.

Financing activities provided $8.9 million in the first six months of 1999
compared to $8.7 million in the prior year.

Available credit facilities and internal cash resources are considered
adequate to provide for ensuing capital requirements.

Year 2000 Readiness
- -------------------
The company is continuing Year 2000 readiness action plans which focus on
computerized and automated systems and processes that are critical to
operations, key vendors and service providers, and MSA products.

State of readiness - In 1996, to provide the information infrastructure for
MSA's evolving global management strategy, the company began a project to
replace significant information technology (IT) systems world-wide with a
fully-integrated Enterprise Wide System (EWS) using SAP R/3. Because SAP R/3
is Year 2000 ready, implementation of EWS at various MSA companies has been
timed to reduce the Year 2000 impact on IT systems. EWS is currently operating
at all MSA locations in the U.S. and at international affiliates in Britain,
Germany and Sweden. Implementation of EWS at the affiliate in Mexico is
expected to be completed at the beginning of fourth quarter 1999. EWS will
then have been implemented at MSA operations which account for approximately
75% of sales and 90% of manufacturing activity. IT systems at most operations
which are not on EWS are now Year 2000 ready. Readiness efforts are ongoing at
four international operating companies, none of which is individually material
to the consolidated results, which are not currently Year 2000 ready. IT
systems at these companies are expected to be Year 2000 ready before the end
of third quarter 1999.

MSA continues to address Year 2000 readiness in a number of other areas,
including: non-IT systems and processes (such as physical plant and
manufacturing systems), key vendors and service providers, EDI systems, and
MSA products. The following chart provides estimated percentages of completion
for the inventory of systems and processes that may be affected by the Year
2000, the analysis performed to determine the Year 2000 impact on inventoried
systems and processes, and the Year 2000 readiness of the inventoried systems
and processes.

Percent Completed
---------------------------------
Y2K Y2K Impact Y2K
As of July 31, 1999 Inventory Assessment Readiness
--------- --------- ---------
Information technology 100% 100% 95%
Non-information technology 98% 95% 90%

Costs of Year 2000 remediation - Costs associated with Year 2000 remediation,
which exclude costs associated with the EWS project, are currently estimated
to total less then $5 million. These costs, which are funded from operating
cash flow, are expensed as incurred each year.

Risks and contingency plans - Failure to identify and correct significant Year
2000 issues could result in interruption of normal business operations. The
company believes that the efforts described above should reasonably identify
and address the impact of the Year 2000 issue and its effect on operations and
should reduce the possibility of significant interruptions. However, due to the
uncertainties inherent in the Year 2000 problem, including the readiness of
third party vendors and service providers and customers, there is a risk of
material adverse effect on future results or financial position. The most
likely worst case Year 2000 scenario would be temporary disruption of business
in certain locations in the event of noncompliance by the company or third
parties, which could include temporary production stoppages and delays in
delivery of product. MSA is continuing to assess these risks.

Year 2000 contingency plans are being developed and implemented by each major
operating location and functional area. Contingency plans may include
stockpiling raw materials and finished goods inventories, developing emergency
recovery procedures, identifying alternate suppliers, temporarily replacing
electronic applications with manual processes, and other appropriate measures.
Year 2000 contingency planning is an ongoing process which will continue to
evolve through the remainder of the year as new information becomes available.

Financial Instrument Market Risk
- --------------------------------
There have been no material changes in the company's financial instrument
market risk during the second quarter of 1999. For additional information,
refer to page 14 of the company's Annual Report to Shareholders for the year
ended December 31, 1998.
PART II  OTHER INFORMATION
MINE SAFETY APPLIANCES COMPANY



Item 1. Legal Proceedings

Not Applicable

Item 4. Submission of Matters to a Vote of Security Holders

(a) May 11, 1999 - Annual Meeting

(b) Directors elected at Annual Meeting

Joseph L. Calihan
L. Edward Shaw, Jr.
Thomas H. Witmer

Directors whose term of office continued after the meeting:

Calvin A. Campbell, Jr.
G. Donald Gerlach
Thomas B. Hotopp
Helen Lee Henderson
John T. Ryan III

(c) Election of three Directors for a term of three years:

Joseph L. Calihan For 4,388,728
Withhold 8,528
Broker Nonvotes -0-

L. Edward Shaw, Jr. For 4,388,581
Withhold 8,675
Broker Nonvotes -0-

Thomas H. Witmer For 4,382,873
Withhold 14,383
Broker Nonvotes -0-

Selection of PricewaterhouseCoopers LLP as independent
accountants for the year ending December 31, 1999

For 4,390,463
Against 6,490
Abstain 303
Broker Nonvotes -0-

(d) Not applicable
Item 6. Exhibits and Reports on Form 8-K

(a) Exhibits

(3) (i) Restated Articles of Incorporation as amended to April
27, 1989

(b) Reports on Form 8-K

No reports on Form 8-K were filed during the quarter ended
June 30, 1999.



SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.


MINE SAFETY APPLIANCES COMPANY



Date: August 12, 1999 By S/James E. Herald
James E. Herald
Vice President - Finance;
Principal Financial and
Accounting Officer