Preformed Line Products Announces Second Quarter and First Half 2010 Results -- Net income increased 70% for the second quarter and 15% for the first six months

-- Net sales increased 38% for the second quarter and 28% for the first six months

-- Earning per diluted share increased 66% for the second quarter and 13% for the first six months

MAYFIELD VILLAGE, Ohio, Aug. 5 /PRNewswire-FirstCall/ -- Preformed Line Products Company (Nasdaq: PLPC) today reported financial results for the second quarter and the first six months of 2010.

Net income for the quarter ended June 30, 2010 increased 70% to $6,096,000, or $1.13 per diluted share, compared to $3,584,000 or $.68 per diluted share, for the comparable period in 2009.

Net sales in the second quarter of 2010 were $82,137,000, an increase of 38% from sales of $59,568,000 in the second quarter of 2009.

Net income for the six months ended June 30, 2010 increased 15% to $7,228,000, or $1.34 per diluted share, compared to $6,306,000, or $1.19 per diluted share for the comparable period in 2009.  Net sales increased 28% to $151,045,000 for the first six months of 2010 compared to $118,262,000 in the first six months of 2009.

Currency exchange rates favorably impacted sales by $3,661,000 for the quarter and $10,597,000 for the first six months of 2010, while the favorable impact on net income was $245,000 for the quarter and $599,000 for the first six months of 2010.

Rob Ruhlman, Chairman and Chief Executive Officer, said, "We had a strong second quarter enabling us to overcome the disappointing results of the first quarter.  The integration of the Dulmison product line acquired in December of last year continues to proceed smoothly.  Although we have additional work to do in merging the Dulmison operations with our existing operations, I am happy with the cooperation and progress made between the two operations.  This acquisition certainly contributed to our second quarter growth but I am particularly impressed with the performance and success of our legacy operations in the face of an ongoing difficult world economic environment.  We continue to feel the pressure of higher raw material costs and we are countering by improving our production efficiencies and capitalizing on the strength of our geographical diversity."

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 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 June 30,


Six month periods ended June 30,






2010


2009


2010


2009


























Net sales


$ 82,137


$ 59,568


$ 151,045


$ 118,262


Cost of products sold


54,682


39,718


103,565


79,834




GROSS PROFIT


27,455


19,850


47,480


38,428














Costs and expenses











Selling


7,038


5,526


13,540


10,890



General and administrative


9,666


7,371


19,144


14,423



Research and engineering


2,700


2,159


5,559


4,220



Other operating expense (income)


1,135


(311)


990


(22)






20,539


14,745


39,233


29,511
















OPERATING INCOME


6,916


5,105


8,247


8,917














Other income (expense)











Interest income


94


87


177


212



Interest expense


(126)


(107)


(296)


(216)



Other income


409


178


760


657






377


158


641


653
















INCOME BEFORE INCOME TAXES


7,293


5,263


8,888


9,570














Income taxes


1,197


1,721


1,758


3,311
















NET INCOME


6,096


3,542


7,130


6,259
















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


-


(42)


(98)


(47)
















NET INCOME ATTRIBUTABLE TO PLPC


$   6,096


$   3,584


$     7,228


$     6,306














BASIC EARNINGS PER SHARE











Net Income to PLPC common shareholders


$     1.16


$     0.69


$       1.38


$       1.21














DILUTED EARNINGS PER SHARE











Net Income to PLPC common shareholders


$     1.13


$     0.68


$       1.34


$       1.19














Cash dividends declared per share


$     0.20


$     0.20


$       0.40


$       0.40














Weighted-average number of shares outstanding - basic


5,253


5,231


5,253


5,228














Weighted-average number of shares outstanding - diluted


5,402


5,311


5,401


5,306



PREFORMED LINE PRODUCTS COMPANY

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)


















June 30,


December 31,

Thousands of dollars, except share and per share data



2010


2009











ASSETS









Cash and cash equivalents




$              22,110


$              24,097

Accounts receivable, less allowances of $1,157 ($995 in 2009)


51,894


49,245

Inventories - net





57,131


56,036

Deferred income taxes





3,452


3,256

Prepaids






7,464


4,263

Other current assets





1,241


2,062



TOTAL CURRENT ASSETS



143,292


138,959











Property and equipment - net




68,304


67,766

Patents and other intangibles - net




7,501


8,087

Goodwill






6,654


6,925

Deferred income taxes





5,038


4,358

Other assets





9,287


9,277













TOTAL ASSETS




$            240,076


$            235,372











LIABILITIES AND SHAREHOLDERS' EQUITY
















Notes payable to banks





$                3,268


$                3,181

Current portion of long-term debt




1,080


1,330

Trade accounts payable





20,405


18,764

Accrued compensation and amounts withheld from employees


11,167


8,345

Accrued expenses and other liabilities



12,755


14,720



TOTAL CURRENT LIABILITIES



48,675


46,340











Long-term debt, less current portion




3,704


3,099

Other noncurrent liabilities and deferred income taxes



14,700


15,112











SHAREHOLDERS' EQUITY







PLPC shareholders' equity:








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





    5,253,306 and 5,248,298 issued and outstanding,






    net of 553,747 and 554,059 treasury shares at par, respectively

10,507


10,497


Paid in capital





7,301


5,885


Retained earnings





171,048


165,953


Accumulated other comprehensive loss



(15,591)


(11,369)



TOTAL PLPC SHAREHOLDERS' EQUITY



173,265


170,966

Noncontrolling interest





(268)


(145)



TOTAL SHAREHOLDERS' EQUITY



172,997


170,821













TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$            240,076


$            235,372



SOURCE Preformed Line Products Company



RELATED LINKS
http://www.preformed.com

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