Preformed Line Products Announces Second Quarter and First Half 2011 Results

- Net income increased 38% for the second quarter and 113% for the first six months

- Net sales of $115 million represent a quarterly record

- Net sales increased 39% for the second quarter and for the first six months

- Earning per diluted share increased 37% for the second quarter and 113% for the first six months

Aug 08, 2011, 07:29 ET from Preformed Line Products Company

MAYFIELD VILLAGE, Ohio, Aug. 8, 2011 /PRNewswire/ -- Preformed Line Products Company (Nasdaq: PLPC) today reported financial results for the second quarter and the first six months of 2011.

Net income for the quarter ended June 30, 2011 increased 38% to $8,386,000, or $1.55 per diluted share, compared to $6,096,000 or $1.13 per diluted share, for the comparable period in 2010.

Net sales in the second quarter of 2011 were $114,530,000, an increase of 39% from sales of $82,137,000 in the second quarter of 2010.

Net income for the six months ended June 30, 2011 increased 113% to $15,384,000, or $2.85 per diluted share, compared to $7,228,000, or $1.34 per diluted share for the comparable period in 2010.

Net sales increased 39% to $209,618,000 for the first six months of 2011 compared to $151,045,000 in the first six months of 2010.

Currency exchange rates favorably impacted sales by $6,969,000 for the second quarter and $10,257,000 for the first six months of 2011, while the favorable impact on net income was $389,000 for the second quarter and $582,000 for the first six months of 2011.

Rob Ruhlman, Chairman and Chief Executive Officer, said, "We have now had two consecutive quarters of record sales with the 2nd quarter exceeding the $100 million threshold for the first time in the Company's history.  Sales in all four of our segments have grown double digit percentages for the year.  This includes sales in Europe, Middle East and Africa where the European economy is still struggling.  Our net income is up 38% for the quarter and 113% for the year.  We attribute our success to our global business combinations, newly developed products and improved demand."

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 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 June 30,

Six month periods ended June 30,

2011

2010

2011

2010

Net sales

$ 114,530

$ 82,137

$ 209,618

$ 151,045

Cost of products sold

77,824

54,682

140,521

103,565

GROSS PROFIT

36,706

27,455

69,097

47,480

Costs and expenses

Selling

9,272

7,038

17,308

13,540

General and administrative

11,780

9,666

22,742

19,144

Research and engineering

3,215

2,700

6,577

5,559

Other operating expense (income)

(694)

1,135

(788)

990

23,573

20,539

45,839

39,233

OPERATING INCOME

13,133

6,916

23,258

8,247

Other income (expense)

Interest income

140

94

291

177

Interest expense

(266)

(126)

(477)

(296)

Other income

43

409

227

760

(83)

377

41

641

INCOME BEFORE INCOME TAXES

13,050

7,293

23,299

8,888

Income taxes

4,520

1,197

7,915

1,758

NET INCOME

8,530

6,096

15,384

7,130

Less net income (loss) attributable

to noncontrolling interests, net of tax

144

-

-

(98)

NET INCOME ATTRIBUTABLE TO PLPC

$     8,386

$   6,096

$   15,384

$     7,228

BASIC EARNINGS PER SHARE

Net Income to PLPC common shareholders

$       1.59

$     1.16

$       2.92

$       1.38

DILUTED EARNINGS PER SHARE

Net Income to PLPC common shareholders

$       1.55

$     1.13

$       2.85

$       1.34

Cash dividends declared per share

$       0.20

$     0.20

$       0.40

$       0.40

Weighted-average number of shares outstanding - basic

5,263

5,253

5,268

5,253

Weighted-average number of shares outstanding - diluted

5,393

5,402

5,390

5,401

PREFORMED LINE PRODUCTS COMPANY

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

June 30,

December 31,

Thousands of dollars, except share and per share data

2011

2010

ASSETS

Cash and cash equivalents

$   23,617

$        22,655

Accounts receivable, less allowances of $1,639 ($1,213 in 2010)

74,970

56,102

Inventories - net

82,280

73,121

Deferred income taxes

5,341

4,784

Prepaids

12,834

9,069

Other current assets

1,769

1,611

TOTAL CURRENT ASSETS

200,811

167,342

Property and equipment - net

80,571

76,266

Other intangibles - net

12,545

12,735

Goodwill

12,880

12,346

Deferred income taxes

3,792

3,615

Other assets

10,697

8,675

TOTAL ASSETS

$ 321,296

$      280,979

LIABILITIES AND SHAREHOLDERS' EQUITY

Notes payable to banks

$     6,465

$          1,246

Current portion of long-term debt

722

1,276

Trade accounts payable

27,623

27,001

Accrued compensation and amounts withheld from employees

14,482

9,848

Accrued expenses and other liabilities

23,256

17,187

TOTAL CURRENT LIABILITIES

72,548

56,558

Long-term debt, less current portion

14,189

9,374

Other noncurrent liabilities and deferred income taxes

20,165

19,582

SHAREHOLDERS' EQUITY

PLPC shareholders' equity:

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

    5,258,210 and 5,270,977 issued and outstanding,

    net of 623,138 and 586,746 treasury shares at par, respectively

10,516

10,542

Common shares issued to Rabbi Trust

(1,260)

(1,200)

Paid in capital

11,307

8,748

Retained earnings

194,075

184,060

Accumulated other comprehensive loss

(244)

(6,010)

TOTAL PLPC SHAREHOLDERS' EQUITY

214,394

196,140

Noncontrolling interest

-

(675)

TOTAL SHAREHOLDERS' EQUITY

214,394

195,465

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$ 321,296

$      280,979

SOURCE Preformed Line Products Company



RELATED LINKS

http://www.preformed.com