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

Nov 04, 2010, 08:15 ET from Preformed Line Products Company

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