Preformed Line Products Board Authorization of Share Repurchase Program
MAYFIELD VILLAGE, Ohio, Aug. 6 /PRNewswire-FirstCall/ -- Preformed Line Products Company (Nasdaq: PLPC) announced today that the Board of Directors authorized the Company to repurchase up to 250,000 common shares, $2 par value per share, or approximately 5% of the Company's outstanding common shares. Under the repurchase program, which does not have a stated expiration date, the Company has authority to repurchase common shares through the open market, block purchases, or in negotiated private transactions on an ongoing basis. The repurchases will be subject to availability of common shares, general market conditions, the trading price of the common shares, alternative uses for capital, and the Company's financial condition and performance.
In approving the repurchase program, the Board recognized that the Company has a variety of options to create shareholder value, including share repurchases, and that this particular capital deployment option is warranted given the Company's strong balance sheet and cash flow. The Board believes that because the Company's shares are trading below book value, the repurchase program will enhance shareholder value by improving the Company's return on equity and earnings per share. Repurchases will have no effect on metrics used in the Company's executive compensation plans.
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 S 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 heading "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.
SOURCE Preformed Line Products Company