Preformed Line Products Announces Financial Results for the Third Quarter and First Nine Months of 2010 - Quarterly records were set in both sales and operating profit

- Net income improved 29% excluding the favorable impact of foreign currency for the nine months ended September 30, 2010

- Net sales improved 24% excluding the favorable impact of foreign currency for the nine months ended September 30, 2010

MAYFIELD VILLAGE, Ohio, Nov. 4, 2010 /PRNewswire-FirstCall/ -- Preformed Line Products Company (Nasdaq: PLPC) today reported financial results for the third quarter and the first nine months of 2010.

Net income for the quarter ended September 30, 2010 was $9,879,000, or $1.83 per diluted share, compared to $6,320,000, or $1.19 per diluted share, for the comparable period in 2009.

Net sales in the third quarter of 2010 were $93,942,000, an increase of 36% from sales of $69,132,000 in the third quarter of 2009.

Net income for the nine months ended September 30, 2010 increased 35% to $17,107,000, or $3.17 per diluted share, compared to $12,626,000, or $2.38 per diluted share for the comparable period in 2009.  

Net sales increased 31% to $244,987,000 for the first nine months of 2010 compared to $187,394,000 in the first nine months of 2009.

Currency exchange rates favorably impacted sales by $1,679,000 for the quarter and $12,303,000 for the first nine months of 2010, while the favorable impact on net income was $341,000 for the quarter and $824,000 for the first nine months of 2010.

Rob Ruhlman, Chairman and Chief Executive Officer, said, "Our sales and net income from ongoing operations were both records for a quarter.  These results reflect the strength of our legacy operations and the success of integrating the Dulmison business acquired in December, 2009.  That we accomplished these results in a struggling world economy is a testament to the talent and dedication of our 2200+ worldwide team.  Continued economic uncertainty, a weakening dollar and ever increasing raw material costs will present numerous challenges and opportunities going forward."  

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 headings "Risk Factors" and "Forward-Looking Statements" in the Company's 2008 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 September 30,


Nine month periods ended September 30,





2010


2009


2010


2009























Net sales


$ 93,942


$ 69,132


$ 244,987


$ 187,394

Cost of products sold


62,271


44,518


165,836


124,352



GROSS PROFIT


31,671


24,614


79,151


63,042












Costs and expenses










Selling


7,678


5,750


21,218


16,640


General and administrative


9,856


8,609


29,000


23,032


Research and engineering


2,915


2,411


8,474


6,631


Other operating expense (income)


(1,735)


(337)


(745)


(359)





18,714


16,433


57,947


45,944














OPERATING INCOME


12,957


8,181


21,204


17,098












Other income (expense)










Interest income


84


95


261


307


Interest expense


(162)


(153)


(458)


(369)


Other income


1,005


326


1,765


983





927


268


1,568


921














INCOME BEFORE INCOME TAXES


13,884


8,449


22,772


18,019












Income taxes


4,002


2,190


5,760


5,501














NET INCOME


9,882


6,259


17,012


12,518














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


3


(61)


(95)


(108)














NET INCOME ATTRIBUTABLE TO PLPC


$   9,879


$   6,320


$   17,107


$   12,626












BASIC EARNINGS PER SHARE










Net Income to PLPC common shareholders


$     1.89


$     1.21


$       3.26


$       2.41












DILUTED EARNINGS PER SHARE










Net Income to PLPC common shareholders


$     1.83


$     1.19


$       3.17


$       2.38












Cash dividends declared per share


$     0.20


$     0.20


$       0.60


$       0.60












Weighted-average number of shares outstanding - basic


5,238


5,235


5,248


5,231












Weighted-average number of shares outstanding - diluted


5,390


5,316


5,396


5,309



PREFORMED LINE PRODUCTS COMPANY 

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)










September 30,


December 31,

Thousands of dollars, except share and per share data

2010


2009







ASSETS





Cash and cash equivalents

$   22,337


$   24,097

Accounts receivable, less allowances of $1,280 ($995 in 2009)

63,437


49,245

Inventories - net

67,869


56,036

Deferred income taxes

3,557


3,256

Prepaids


7,404


4,263

Other current assets

1,490


2,062



TOTAL CURRENT ASSETS

166,094


138,959







Property and equipment - net

73,228


67,766

Patents and other intangibles - net

12,848


8,087

Goodwill


12,056


6,925

Deferred income taxes

5,661


4,358

Other assets

9,118


9,277









TOTAL ASSETS

$ 279,005


$ 235,372







LIABILITIES AND SHAREHOLDERS' EQUITY










Notes payable to banks

$        831


$     3,181

Current portion of long-term debt

1,253


1,330

Trade accounts payable

24,684


18,764

Accrued compensation and amounts withheld from employees

12,910


8,345

Accrued expenses and other liabilities

19,256


14,720



TOTAL CURRENT LIABILITIES

58,934


46,340







Long-term debt, less current portion

14,456


3,099

Other noncurrent liabilities and deferred income taxes

16,945


15,112







SHAREHOLDERS' EQUITY




PLPC shareholders' equity:





Common shares - $2 par value, 15,000,000 shares authorized, 5,220,847 and 5,248,298 issued and outstanding, net of 587,286 and 551,059 treasury shares at par, respectively

10,442


10,497


Paid in capital

7,774


5,885


Retained earnings

179,140


165,953


Accumulated other comprehensive loss

(8,051)


(11,369)



TOTAL PLPC SHAREHOLDERS' EQUITY

189,305


170,966

Noncontrolling interest

(635)


(145)



TOTAL SHAREHOLDERS' EQUITY

188,670


170,821









TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$ 279,005


$ 235,372



SOURCE Preformed Line Products Company



RELATED LINKS
http://www.preformed.com

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