Preformed Line Products Announces Financial Results for the Quarter Ended March 31, 2010

Apr 30, 2010, 13:40 ET from Preformed Line Products Company

MAYFIELD VILLAGE, Ohio, April 30 /PRNewswire-FirstCall/ -- Preformed Line Products Company (Nasdaq: PLPC) today reported financial results for the first quarter ended March 31, 2010.

Net income for the quarter ended March 31, 2010 was $1,132,000, or $.21 per diluted share, compared to $2,722,000, or $.51 per diluted share, for the comparable period in 2009.

Net sales for the first quarter of 2010 increased 17% to $68,908,000 compared to $58,694,000 in the first quarter of 2009.  

Currency translation had a positive impact on sales and net income for the quarter of $6.9 million and $.4 million, respectively.

Rob Ruhlman, Chairman and Chief Executive Officer, said, "Our overall results for the current quarter were disappointing given the 17% increase in sales.  Increases in our raw material costs and integration expenses related to the acquisition of Dulmison in December 2009 contributed to the decline in our operating profit.   The improvement in sales as a result of adding Dulmison was offset by the continuing faltering economy in Europe as well as the ongoing economic challenges in the U.S.  If we have an uptick in sales in the second quarter, there should be a corresponding improvement in leveraging our expenses."

Founded in 1947, Preformed Line Products is an international designer and manufacturer of products and systems employed in the construction and maintenance of overhead and underground networks for energy, communications and broadband network companies.

Preformed's world headquarters are in Cleveland, Ohio, and the Company operates three domestic manufacturing centers located in Rogers, Arkansas, Albuquerque, New Mexico, and Albemarle, North Carolina.  The Company serves its worldwide market through international operations in Australia, Brazil, Canada, China, England, Indonesia, Malaysia, Mexico, New Zealand, Poland, South Africa, Spain and Thailand.

This news release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 regarding the Company, including those statements regarding the Company's and management's beliefs and expectations concerning the Company's future performance or anticipated financial results, among others. Except for historical information, the matters discussed in this release are forward-looking statements that involve risks and uncertainties which may cause results to differ materially from those set forth in those statements.  Among other things, factors that could cause actual results to differ materially from those expressed in such forward-looking statements include the strength of the economy and demand for the Company's products, increases in raw material prices, the Company's ability to identify, complete and integrate acquisitions for profitable growth, and other factors described under the heading "Forward-Looking Statements" in the Company's 2009 Annual Report on Form 10-K filed with the SEC on March 15, 2010.  The Annual Report on Form 10-K and the Company's other filings with the SEC can be found on the SEC's website at http://www.sec.gov.  The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

PREFORMED LINE PRODUCTS COMPANY 

STATEMENTS OF CONSOLIDATED OPERATIONS

(UNAUDITED)

Thousands, except per share data

Three month periods ended March 31,

2010

2009

Net sales

$ 68,908

$ 58,694

Cost of products sold

48,883

40,116

GROSS PROFIT

20,025

18,578

Costs and expenses

Selling

6,502

5,364

General and administrative

9,478

7,052

Research and engineering

2,859

2,061

Other operating (expense) income

(145)

289

18,694

14,766

OPERATING INCOME

1,331

3,812

Other income (expense)

Interest income

83

125

Interest expense

(170)

(109)

Other income

351

479

264

495

INCOME BEFORE INCOME TAXES

1,595

4,307

Income taxes

561

1,590

NET INCOME

1,034

2,717

Less net (loss) attributable to noncontrolling interests, net of tax

(98)

(5)

NET INCOME ATTRIBUTABLE TO PLPC

$   1,132

$   2,722

BASIC EARNINGS PER SHARE

Net Income to PLPC common shareholders

$     0.22

$     0.52

DILUTED EARNINGS PER SHARE

Net Income to PLPC common shareholders

$     0.21

$     0.51

Cash dividends declared per share

$     0.20

$     0.20

Weighted-average number of shares outstanding - basic

5,252

5,225

Weighted-average number of shares outstanding - diluted

5,403

5,305

PREFORMED LINE PRODUCTS COMPANY

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

March 31,

December 31,

Thousands of dollars, except share and per share data

2010

2009

ASSETS

Cash and cash equivalents

$   24,751

$        24,097

Accounts receivable, less allowances of $794 ($995 in 2009)

49,277

49,245

Inventories - net

58,293

56,036

Deferred income taxes

3,142

3,256

Prepaids

5,873

4,263

Other current assets

1,138

2,062

TOTAL CURRENT ASSETS

142,474

138,959

Property and equipment - net

69,592

67,766

Patents and other intangibles - net

7,988

8,087

Goodwill

6,992

6,925

Deferred income taxes

4,858

4,358

Other assets

8,514

9,277

TOTAL ASSETS

$ 240,418

$      235,372

LIABILITIES AND SHAREHOLDERS' EQUITY

Notes payable to banks

$     3,570

$          3,181

Current portion of long-term debt

1,480

1,330

Trade accounts payable

19,484

18,764

Accrued compensation and amounts withheld from employees

9,770

8,345

Accrued expenses and other liabilities

12,106

14,720

TOTAL CURRENT LIABILITIES

46,410

46,340

Long-term debt, less current portion

7,646

3,099

Other noncurrent liabilities and deferred income taxes

15,153

15,112

SHAREHOLDERS' EQUITY

PLPC shareholders' equity:

Common shares - $2 par value, 15,000,000 shares authorized, 5,253,140 and 5,248,298 issued and outstanding, net of 554,205 and 554,059 treasury shares at par, respectively

10,506

10,497

Paid in capital

6,448

5,885

Retained earnings

166,122

165,953

Accumulated other comprehensive loss

(11,481)

(11,369)

TOTAL PLPC SHAREHOLDERS' EQUITY

171,595

170,966

Noncontrolling interest

(386)

(145)

TOTAL SHAREHOLDERS' EQUITY

171,209

170,821

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$ 240,418

$      235,372

SOURCE Preformed Line Products Company



RELATED LINKS

http://www.preformed.com