8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934

Date of Report: October 28, 2004

Preformed Line Products Company

(Exact name of registrant as specified in its charter)

Ohio
(State or other
jurisdiction of
incorporation) 0-31164
(Commission File Number) 34-0676895
(IRS Employer
Identification No.)

660 Beta Drive
Mayfield Village, Ohio
(Address of principal executive offices) 44143
(Zip Code)

Registrant’s telephone number, including area code: (440) 461-5200

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

TABLE OF CONTENTS

	ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION
SIGNATURES
EXHIBIT INDEX
EX-99.1 PRESS RELEASE

ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION

     On October 28, 2004, Preformed Line Products Company issued a press release announcing earnings for the three and nine months ended September 30, 2004. A copy of the press release is attached hereto as Exhibit 99.1. This information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except, as shall be expressly set forth by specific reference in such a filing.

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

PREFORMED LINE PRODUCTS COMPANY
 

/s/ Eric R. Graef  

Eric R. Graef, Vice President – Finance 

and Treasurer 

DATED: October 28, 2004

EXHIBIT INDEX

Exhibit No.	Description
99.1	Press release dated October 28, 2004, announcing earnings for the three months and nine months ended September 30, 2004.

EX-99.1

EXHIBIT 99.1

(PREFORMED LINE PRODUCTS LOGO)

For immediate release	Eric R. Graef
October 28, 2004	Preformed Line Products
	(440) 473-9249

PREFORMED LINE PRODUCTS ANNOUNCES SIGNIFICANTLY IMPROVED
FINANCIAL RESULTS FOR THE THIRD QUARTER AND
FIRST NINE MONTHS OF 2004

Cleveland, Ohio, October 28, 2004 – Preformed Line Products Company (Nasdaq: PLPC) today reported financial results for the third quarter and the first nine months of 2004.

Consolidated earnings for the third quarter ended September 30, 2004 were $5,496,000, or $.96 per share, compared to a net loss for the comparable period in 2003 of $510,000, or negative $.09 per share. Earnings in the third quarter of 2004 included a net gain of $1,659,000 or $.29 per share on the sale of the Company’s 49% interest in a Japanese joint venture. The loss in the third quarter of 2003 included a non-recurring charge of $1,651,000 or $.29 per share for tax expense related to the undistributed earnings of the Company’s Japanese joint ventures. Excluding the non-recurring items for the Japanese joint ventures, earnings were $.67 per share for the third quarter of 2004 compared to $.20 per share in 2003, a 235% increase. Earnings for the third quarter of 2004 increased as a result of higher shipment volume, the positive currency effects of a weak U.S. dollar and favorable price/mix, partially offset by higher costs and expenses.

Consolidated sales for the quarter of $49,065,000 were 24% higher than sales of $39,473,000 in the third quarter of 2003.

For the first nine months of 2004, consolidated earnings were $9,231,000, or $1.61 per share, compared to earnings of $1,407,000, or $.24 per share, for the first nine months of 2003. Excluding the non-recurring items related to the Japanese joint ventures, earnings were $1.32 per share in 2004, which represented an increase of 149% over earnings of $.53 per share in 2003.

Consolidated sales were $134,479,000 for the first nine months of 2004 compared with $114,654,000 for the first nine months of 2003. This 17% increase in sales was a result of higher shipment volume, the positive currency effects of the weak U.S. dollar and favorable price/mix.

PAGE 2 / PLP ANNOUNCES THIRD QUARTER RESULTS

Rob Ruhlman, Chief Executive Officer said, “I am thrilled with the outstanding earnings increase and encouraged by improving business conditions. This was the fifth consecutive quarter of earnings growth. These earnings are being driven by double-digit sales growth over the previous year, particularly in the domestic market. Our expense structure has been critically assessed during the past several years resulting in relatively stable levels of expenditures after considering the impact of fluctuations in foreign currency. Consequently, we were able to leverage our higher sales volume into substantially higher earnings. I continue to be concerned about the rising cost of raw material - specifically, steel and petroleum based materials. Our margins are under pressure and our success going forward depends upon the level to which we can recover these significant raw material cost increases through price increases and continued improvements in efficiency.”

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, Albemarle, North Carolina, and Asheville, North Carolina. The Company serves its worldwide market through international operations in Australia, Brazil, Canada, China, England, Mexico, New Zealand, South Africa, Spain and Thailand.

Earnings and earnings per share adjusted for non-recurring items for the Japanese joint ventures are non-GAAP financial measures. Management believes that both net income and net income per share as adjusted for exclusion of the Japanese joint ventures assist the investor in understanding the results of operations of Preformed Line Products Company.

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 heading “Forward-Looking Statements” in the Company’s Form 10-K filed with the SEC on March 26, 2004. The 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 INCOME
FOR THE THREE MONTH AND NINE MONTH PERIODS ENDED SEPTEMBER 30, 2004 AND 2003
(Unaudited)

	Three month period						Nine month period
Thousands, except per share data	ended September 30,						ended September 30,
	2004			2003			2004			2003
Net sales	$	49,065		$	39,473		$	134,479		$	114,654
Cost of products sold		32,652			27,816			90,897			80,101
GROSS PROFIT		16,413			11,657			43,582			34,553
Costs and expenses
Selling		4,921			4,356			13,958			12,686
General and administrative		5,243			4,342			15,032			14,606
Research and engineering		1,389			1,282			4,323			3,943
Other operating (income) expenses — net		(328	)		91			(200	)		(240	)
		11,225			10,071			33,113			30,995
Royalty income — net		856			281			1,603			993
OPERATING INCOME		6,044			1,867			12,072			4,551
Other income (expense)
Equity in net income (loss) of foreign joint ventures		2,335			(59	)		2,356			157
Interest income		222			96			465			278
Interest expense		(74	)		(94	)		(277	)		(332	)
Other expense		(36	)		(40	)		(109	)		(121	)
		2,447			(97	)		2,435			(18	)
INCOME BEFORE INCOME TAXES		8,491			1,770			14,507			4,533
Income taxes		2,995			2,280			5,276			3,126
NET INCOME (LOSS)	$	5,496		$	(510	)	$	9,231		$	1,407
Net income (loss) per share — basic	$	0.96		$	(0.09	)	$	1.61		$	0.24
Net income (loss) per share — diluted	$	0.95		$	(0.09	)	$	1.59		$	0.24
Cash dividends declared per share	$	0.20		$	0.20		$	0.60		$	0.60
Average number of shares outstanding — basic		5,717			5,784			5,738			5,779
Average number of shares outstanding — diluted		5,762			5,784			5,793			5,787

PREFORMED LINE PRODUCTS COMPANY
CONSOLIDATED BALANCE SHEETS
AS OF SEPTEMBER 30, 2004 AND DECEMBER 31, 2003
(Unaudited)

	September 30,			December 31,
Thousands of dollars, except share data	2004			2003
ASSETS
Cash and cash equivalents	$	30,008		$	28,209
Accounts receivable, less allowance of $2,394 ($2,463 in 2003)		32,212			24,225
Inventories-net		33,516			31,113
Deferred income taxes		3,149			3,740
Prepaids and other		2,340			1,692
TOTAL CURRENT ASSETS		101,225			88,979
Property and equipment — net		46,286			47,888
Investments in foreign joint venture		—			2,826
Deferred income taxes		214			434
Goodwill — net		2,037			1,929
Patents and other intangibles — net		3,340			3,624
Other		2,371			3,290
TOTAL ASSETS	$	155,473		$	148,970
LIABILITIES AND SHAREHOLDERS’ EQUITY
Notes payable to banks	$	1,066		$	1,019
Current portion of long-term debt		1,653			1,884
Trade accounts payable		10,683			7,648
Accrued compensation and amounts withheld from employees		5,307			3,749
Accrued expenses and other liabilities		4,019			4,356
Accrued profit-sharing and pension contributions		3,585			3,850
Dividends payable		1,143			1,163
Income taxes		3,211			1,650
TOTAL CURRENT LIABILITIES		30,667			25,319
Long-term debt, less current portion		2,105			2,515
Deferred income taxes — long-term		222			97
Minimum pension liability		—			309
SHAREHOLDERS’ EQUITY
Common shares — $2 par value, 15,000,000 shares authorized, 5,717,433 and 5,814,269 outstanding, net of 477,404 and 377,404 treasury shares at par, respectively.		11,435			11,629
Paid in capital		509			472
Retained earnings		126,441			123,022
Accumulated other comprehensive loss		(15,906	)		(14,393	)
TOTAL SHAREHOLDERS’ EQUITY		122,479			120,730
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	155,473		$	148,970