EX-99.1 2 v183010_ex99-1.htm

For immediate release
Eric R. Graef
April 30, 2010
Preformed Line Products
 
(440) 473-9249

PREFORMED LINE PRODUCTS ANNOUNCES FINANCIAL RESULTS
FOR THE QUARTER ENDED MARCH 31, 2010

Mayfield Village, Ohio, April 30, 2010 – Preformed Line Products Company (Nasdaq:PLPC) today reported financial results for the first quarter ended March 31, 2010.

Net income for the quarter ended March 31, 2010 was $1,132,000, or $.21 per diluted share, compared to $2,722,000, or $.51 per diluted share, for the comparable period in 2009.

Net sales for the first quarter of 2010 increased 17% to $68,908,000 compared to $58,694,000 in the first quarter of 2009.

Currency translation had a positive impact on sales and net income for the quarter of $6.9 million and $.4 million, respectively.

Rob Ruhlman, Chairman and Chief Executive Officer, said, “Our overall results for the current quarter were disappointing given the 17% increase in sales.  Increases in our raw material costs and integration expenses related to the acquisition of Dulmison in December 2009 contributed to the decline in our operating profit.   The improvement in sales as a result of adding Dulmison was offset by the continuing faltering economy in Europe as well as the ongoing economic challenges in the U.S.  If we have an uptick in sales in the second quarter, there should be a corresponding improvement in leveraging our expenses.”


 
 

 

PAGE 2/PLP ANNOUNCES FIRST QUARTER RESULTS

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 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.

 
 

 

PREFORMED LINE PRODUCTS COMPANY
STATEMENTS OF CONSOLIDATED OPERATIONS
(UNAUDITED)

Thousands, except per share data
 
Three month periods ended March 31,
 
   
2010
   
2009
 
             
Net sales
  $ 68,908     $ 58,694  
Cost of products sold
    48,883       40,116  
GROSS PROFIT
    20,025       18,578  
                 
Costs and expenses
               
Selling
    6,502       5,364  
General and administrative
    9,478       7,052  
Research and engineering
    2,859       2,061  
Other operating (expense) income
    (145 )     289  
      18,694       14,766  
                 
OPERATING INCOME
    1,331       3,812  
                 
Other income (expense)
               
Interest income
    83       125  
Interest expense
    (170 )     (109 )
Other income
    351       479  
      264       495  
                 
INCOME BEFORE INCOME TAXES
    1,595       4,307  
                 
Income taxes
    561       1,590  
                 
NET INCOME
    1,034       2,717  
                 
Less net (loss) attributable to noncontrolling interests, net of tax
    (98 )     (5 )
                 
NET INCOME ATTRIBUTABLE TO PLPC
  $ 1,132     $ 2,722  
                 
BASIC EARNINGS PER SHARE
               
Net Income to PLPC common shareholders
  $ 0.22     $ 0.52  
                 
DILUTED EARNINGS PER SHARE
               
Net Income to PLPC common shareholders
  $ 0.21     $ 0.51  
                 
Cash dividends declared per share
  $ 0.20     $ 0.20  
                 
Weighted-average number of shares outstanding - basic
    5,252       5,225  
                 
Weighted-average number of shares outstanding - diluted
    5,403       5,305  

 
 

 

PREFORMED LINE PRODUCTS COMPANY
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)

   
March 31,
   
December 31,
 
Thousands of dollars, except share and per share data
 
2010
   
2009
 
             
ASSETS
           
Cash and cash equivalents
  $ 24,751     $ 24,097  
Accounts receivable, less allowances of $794 ($995 in 2009)
    49,277       49,245  
Inventories - net
    58,293       56,036  
Deferred income taxes
    3,142       3,256  
Prepaids
    5,873       4,263  
Other current assets
    1,138       2,062  
TOTAL CURRENT ASSETS
    142,474       138,959  
                 
Property and equipment - net
    69,592       67,766  
Patents and other intangibles - net
    7,988       8,087  
Goodwill
    6,992       6,925  
Deferred income taxes
    4,858       4,358  
Other assets
    8,514       9,277  
                 
TOTAL ASSETS
  $ 240,418     $ 235,372  
                 
LIABILITIES AND SHAREHOLDERS' EQUITY
               
                 
Notes payable to banks
  $ 3,570     $ 3,181  
Current portion of long-term debt
    1,480       1,330  
Trade accounts payable
    19,484       18,764  
Accrued compensation and amounts withheld from employees
    9,770       8,345  
Accrued expenses and other liabilities
    12,106       14,720  
TOTAL CURRENT LIABILITIES
    46,410       46,340  
                 
Long-term debt, less current portion
    7,646       3,099  
Other noncurrent liabilities and deferred income taxes
    15,153       15,112  
                 
SHAREHOLDERS' EQUITY
               
PLPC shareholders' equity:
               
Common shares - $2 par value, 15,000,000 shares authorized, 5,253,140 and 5,248,298 issued and outstanding, net of 554,205 and 554,059 treasury shares at par, respectively
    10,506       10,497  
Paid in capital
    6,448       5,885  
Retained earnings
    166,122       165,953  
Accumulated other comprehensive loss
    (11,481 )     (11,369 )
TOTAL PLPC SHAREHOLDERS' EQUITY
    171,595       170,966  
Noncontrolling interest
    (386 )     (145 )
TOTAL SHAREHOLDERS' EQUITY
    171,209       170,821  
                 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
  $ 240,418     $ 235,372