MSA MSA Safety, Inc.

Management Discussion

• Net Sales. Net sales for the three months ended September 30, 2019, were $351.0 million, an increase of $19.9 million, or 6.0% compared to $331.1 million for the three months ended September 30, 2018. Please refer to the Net Sales table for a reconciliation of the quarter over quarter sales change.
• Note: Constant currency sales change is a non-GAAP financial measure provided by the Company to give a better understanding of the Company's underlying business performance. Constant currency sales change is calculated by deducting the percentage impact from currency translation effects from the overall percentage change in net sales.
• Net sales for the Americas segment were $234.6 million in the third quarter of 2019, an increase of $25.3 million, or 12.1%, compared to $209.3 million in the third quarter of 2018, on stronger core sales. During the quarter, constant currency sales in the Americas segment increased 12.5% compared to the prior year period, driven primarily by growth in industrial personal protective equipment, gas detection and air purifying respirators ("APR"). Breathing apparatus sales declined year over year due to delays in product certification for all firefighting breathing apparatus manufacturers, which delayed the launch of our next generation G1 SCBA by approximately six weeks. We began shipping the new G1 SCBA immediately upon receipt of the certification on September 30, 2019. The impact of lower breathing apparatus volumes in the quarter was mostly offset by revenue growth in firefighter helmets and protective apparel.