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

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

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