Revenue during the quarter went up marginally by 1.64 percent to $278.23 million from $273.75 million in the previous year period. Gross margin for the quarter expanded 252 basis points over the previous year period to 46.28 percent. Total expenses were 85.62 percent of quarterly revenues, down from 90.34 percent for the same period last year. This has led to an improvement of 472 basis points in operating margin to 14.38 percent.

Operating income for the quarter was $40.02 million, compared with $26.46 million in the previous year period.

However, the adjusted operating income for the quarter stood at $42.70 million compared to $34.52 million in the prior year period. At the same time, adjusted operating margin improved 274 basis points in the quarter to 15.35 percent from 12.61 percent in the last year period.

"While challenging macro conditions persist in certain areas of our business, our results continue to reflect the steps weve taken to drive improved profitability in a slow growth environment," said William M. Lambert, MSA chairman, president and chief executive officer. "The cost reduction program that we began in late 2015 and the key strategic investments weve made over the past year were designed to mitigate the expected market headwinds of 2016, and thats exactly what were seeing," he continued. Mr. Lambert noted that operating income increased 28 percent in the first nine months of 2016, while net income from continuing operations was up 38 percent in the same period on revenue growth of 4 percent.

The company has spent $16.48 million cash to meet investing activities during the nine month period as against cash outgo of $17.18 million in the last year period.

The company has spent $16.25 million cash to carry out financing activities during the nine month period as against cash inflow of $100.20 million in the last year period.

Cash and cash equivalents stood at $106.03 million as on Sep. 30, 2016, down 44 percent or $83.31 million from $189.34 million on Sep. 30, 2015.

Working capital declines
MSA Safety Inc has witnessed a decline in the working capital over the last year. It stood at $337.63 million as at Sep. 30, 2016, down 8.58 percent or $31.69 million from $369.32 million on Sep. 30, 2015. Current ratio was at 2.75 as on Sep. 30, 2016, up from 2.47 on Sep. 30, 2015.

Cash conversion cycle (CCC) has decreased to 72 days for the quarter from 122 days for the last year period. Days sales outstanding went down to 73 days for the quarter compared with 77 days for the same period last year.

Days inventory outstanding has decreased to 41 days for the quarter compared with 90 days for the previous year period. At the same time, days payable outstanding went down to 42 days for the quarter from 45 for the same period last year.