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

Aug 05, 2010, 07:59 ET from Preformed Line Products Company

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