Preformed Line Products Announces Financial Results for the Quarter Ended March 31, 2011

-- Sales of $95 million represent a quarterly record

-- Sales were up 33% from the 1st quarter of 2010, excluding the favorable impact of currency

-- Diluted EPS of $1.30 were the 2nd highest in the Company's history

04 May, 2011, 07:31 ET from Preformed Line Products Company

MAYFIELD VILLAGE, Ohio, May 4, 2011 /PRNewswire/ -- Preformed Line Products Company (NASDAQ: PLPC) today reported financial results for the first quarter ended March 31, 2011.

Net income for the quarter ended March 31, 2011 was $6,998,000, or $1.30 per diluted share, compared to $1,132,000, or $.21 per diluted share, for the comparable period in 2010.

Net sales for the first quarter of 2011 increased 38% to $95,088,000 compared to $68,908,000 in the first quarter of 2010.  

Currency translation had a positive impact on sales and net income for the quarter of $3.3 million and $.2 million, respectively.

Rob Ruhlman, Chairman and Chief Executive Officer, said, "Our first quarter results were very gratifying especially considering the continuing unstable economic environment throughout the world.  I am proud of the continuing success we have achieved in integrating our two most recent acquisitions.  Commodity prices continue to rise, but our programs of continuous improvement in our manufacturing processes are assisting in reducing their impact."

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, telecommunication, cable operators, information (data communication), and other similar industries.  Our primary products support, protect, connect, terminate, and secure cables and wires.  We also provide solar hardware systems and mounting hardware for a variety of solar power applications.

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 headings "Forward-Looking Statements" and "Risk Factors" in the Company's 2010 Annual Report on Form 10-K filed with the SEC on March 11, 2011 and subsequent filings with the SEC.  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)

In thousands, except per share data

Three month periods ended March 31,

2011

2010

Net sales

$ 95,088

$ 68,908

Cost of products sold

62,697

48,883

GROSS PROFIT

32,391

20,025

Costs and expenses

Selling

8,036

6,502

General and administrative

10,962

9,478

Research and engineering

3,362

2,859

Other operating expense (income)

(94)

(145)

22,266

18,694

OPERATING INCOME

10,125

1,331

Other income (expense)

Interest income

151

83

Interest expense

(211)

(170)

Other income

184

351

124

264

INCOME BEFORE INCOME TAXES

10,249

1,595

Income taxes

3,395

561

NET INCOME

6,854

1,034

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

(144)

(98)

NET INCOME ATTRIBUTABLE TO PLPC

$   6,998

$   1,132

BASIC EARNINGS PER SHARE

Net Income to PLPC common shareholders

$     1.33

$     0.22

DILUTED EARNINGS PER SHARE

Net Income to PLPC common shareholders

$     1.30

$     0.21

Cash dividends declared per share

$     0.20

$     0.20

Weighted-average number of shares outstanding - basic

5,272

5,252

Weighted-average number of shares outstanding - diluted

5,400

5,403

PREFORMED LINE PRODUCTS COMPANY

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

March 31,

December 31,

Thousands of dollars, except share and per share data

2011

2010

ASSETS

Cash and cash equivalents

$   24,146

$        22,655

Accounts receivable, less allowances of $1,511 ($1,213 in 2010)

62,294

56,102

Inventories - net

81,114

73,121

Deferred income taxes

5,974

4,784

Prepaids

10,698

9,069

Other current assets

1,959

1,611

TOTAL CURRENT ASSETS

186,185

167,342

Property and equipment - net

77,987

76,266

Other intangibles - net

12,407

12,735

Goodwill

12,388

12,346

Deferred income taxes

2,882

3,615

Other assets

10,014

8,675

TOTAL ASSETS

$ 301,863

$      280,979

LIABILITIES AND SHAREHOLDERS' EQUITY

Notes payable to banks

$     3,584

$          1,246

Current portion of long-term debt

1,258

1,276

Trade accounts payable

27,710

27,001

Accrued compensation and amounts withheld from employees

12,419

9,848

Accrued expenses and other liabilities

17,745

17,187

TOTAL CURRENT LIABILITIES

62,716

56,558

Long-term debt, less current portion

14,798

9,374

Other noncurrent liabilities and deferred income taxes

19,831

19,582

SHAREHOLDERS' EQUITY

PLPC shareholders' equity:

Common shares - $2 par value, 15,000,000 shares authorized,

    5,272,804 and 5,270,977 issued and outstanding,

    net of 586,746 and 586,746 treasury shares at par, respectively

10,546

10,542

Common shares issued to Rabbi Trust

(1,220)

(1,200)

Paid in capital

9,514

8,748

Retained earnings

189,957

184,060

Accumulated other comprehensive loss

(3,447)

(6,010)

TOTAL PLPC SHAREHOLDERS' EQUITY

205,350

196,140

Noncontrolling interest

(832)

(675)

TOTAL SHAREHOLDERS' EQUITY

204,518

195,465

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$ 301,863

$      280,979

SOURCE Preformed Line Products Company



RELATED LINKS

http://www.preformed.com