Preformed Line Products Announces Financial Results For The Third Quarter And First Nine Months Of 2014

MAYFIELD VILLAGE, Ohio, Nov. 7, 2014 /PRNewswire/ -- Preformed Line Products Company (Nasdaq: PLPC) today reported financial results for the third quarter and the first nine months of 2014.

Net income for the quarter ended September 30, 2014 was $2,555,000, or $.48 per diluted share, compared to $6,104,000, or $1.12 per diluted share, for the comparable period in 2013.

Net sales in the third quarter of 2014 were $102,100,000 compared to sales of $100,828,000 in the third quarter of 2013.

Net income for the nine months ended September 30, 2014 was $10,373,000, or $1.92 per diluted share, compared to $17,455,000, or $3.20 per diluted share for the comparable period in 2013. 

Net sales were $292,006,000 for the first nine months of 2014 compared to $311,233,000 in the first nine months of 2013.

Currency exchange rates impacted net sales favorably by $514,000 for the quarter and unfavorably by $5,601,000 for the first nine months of 2014, while the positive impact on net income was $123,000 for the quarter and $21,000 for the first nine months of 2014.

Rob Ruhlman, Chairman and Chief Executive Officer, said, "Our South Africa operation was hindered by a national steel workers strike causing us to lose weeks of production.  Throughout the Asia-Pacific region we are impacted by government turmoil whether it be military rule, inaction due to elections or governments deferral of new power projects.  We reversed previously recognized tax benefits on operating loss carryforwards in the Asia-Pacific region in accordance with generally accepted accounting principles which prevent us from recognizing the benefits until the carryforwards are actually realized.  Additionally, the completion of transmission projects in the U.S. in early 2013 translates to a lower level of sales in 2014 when compared to 2013.  The continuing weakening of foreign currencies against the U.S. dollar had a negative impact on our outstanding loans to the foreign subsidiaries and we recognized $2.1 million of exchange losses in the quarter and $520,000 on a year-to- date basis on these loans.  However, our international backlog is the strongest it has been in the past 2 years and we look forward to rebounding when governments loosen their purse strings."

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 is in Mayfield Village, 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 Argentina, Australia, Brazil, Canada, China, England, France, Indonesia, Malaysia, Mexico, New Zealand, Poland, Russia, 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, workforce disruptions and other factors described under the headings "Risk Factors" and "Forward-Looking Statements" in the Company's 2013 Annual Report on Form 10-K filed with the SEC on March 14, 2014 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.

SOURCE Preformed Line Products Company