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Preformed Line Products Announces Financial Results for the Third Quarter and First Nine Months of 2009

Posted on: Monday, 2 November 2009, 07:09 CST

MAYFIELD VILLAGE, Ohio, Nov. 2 /PRNewswire-FirstCall/ -- Preformed Line Products Company (Nasdaq: PLPC) today reported financial results for the third quarter and the first nine months of 2009.

Net income for the quarter ended September 30, 2009 was $6,320,000, or $1.19 per diluted share, compared to $6,423,000, or $1.22 per diluted share, for the comparable period in 2008. Currency exchange rates had a negative impact on net income of $359,000.

Net sales in the third quarter of 2009 were $69,132,000, a decrease of 7% from sales of $73,952,000 in the third quarter of 2008. Net sales decreased only 1% excluding the negative impact of currency exchange rates of $3,965,000.

Net income for the nine months ended September 30, 2009 decreased 15% to $12,626,000, or $2.38 per diluted share, compared to $14,862,000, or $2.78 per diluted share for the comparable period in 2008. Currency exchange rates negatively impacted net income for the first nine months of 2009 by $1,205,000. Net income in 2008 included a net gain of $461,000, or $.09 per diluted share, on the sale of Superior Modular Products Company ("SMP"), a former wholly owned domestic subsidiary.

Net sales decreased 10% to $187,394,000 for the first nine months of 2009 compared to $209,179,000 in the first nine months of 2008. Net sales decreased 2% for the first nine months excluding the negative impact of currency exchanges rates of $18,639,000.

Rob Ruhlman, Chairman and Chief Executive Officer, said, "I believe our results are admirable considering the state of the world economy during this past year. Excluding the impact of currency when foreign statements are translated into U.S. dollars, net income was up 4% for the quarter. When the currency impact and discontinued operations are excluded from the first nine months, net income was down only 2%."

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, 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 2008 Annual Report on Form 10-K filed with the SEC on March 13, 2009. 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) Three month Nine month periods ended periods ended Thousands, except per share data September 30, September 30, -------------- -------------- 2009 2008 2009 2008 ---- ---- ---- ---- Net sales $69,132 $73,952 $187,394 $209,179 Cost of products sold 44,518 48,489 124,352 141,034 ------ ------ ------- ------- GROSS PROFIT 24,614 25,463 63,042 68,145 Costs and expenses Selling 5,750 6,119 16,640 17,879 General and administrative 8,609 7,506 23,032 22,553 Research and engineering 2,411 2,218 6,631 6,545 Other operating (income) expenses - net (337) 462 (359) 605 ---- --- ---- --- 16,433 16,305 45,944 47,582 ----- ----- ------ ------ OPERATING INCOME 8,181 9,158 17,098 20,563 Other income (expense) Interest income 95 225 307 655 Interest expense (153) (138) (369) (415) Other income (expense) 326 176 983 196 --- --- --- --- 268 263 921 436 --- --- --- --- INCOME BEFORE INCOME TAXES AND DISCONTINUED OPERATIONS 8,449 9,421 18,019 20,999 Income taxes 2,190 2,807 5,501 6,604 ----- ----- ----- ----- INCOME FROM CONTINUING OPERATIONS, NET OF TAX 6,259 6,614 12,518 14,395 Income from discontinued operations, net of tax - (34) - 735 NET INCOME 6,259 6,580 12,518 15,130 Less net income (loss) attributable to noncontrolling interests, net of tax (61) 157 (108) 268 --- --- ---- --- NET INCOME ATTRIBUTABLE TO PLPC $6,320 $6,423 $12,626 $14,862 ====== ====== ======= ======= BASIC EARNINGS PER SHARE Income per share from continuing operations attributable to PLPC common shareholders $1.21 $1.24 $2.41 $2.67 ===== ===== ===== ===== Discontinued operations attributable to PLPC common shareholders $- $(0.01) $- $0.14 == ====== == ===== Net income attributable to PLPC common shareholders $1.21 $1.23 $2.41 $2.81 ===== ===== ===== ===== DILUTED EARNINGS PER SHARE Income per share from continuing operations attributable to PLPC common shareholders $1.19 $1.23 $2.38 $2.64 ===== ===== ===== ===== Discontinued operations attributable to PLPC common shareholders $- $(0.01) $- $0.14 == ====== == ===== Net income attributable to PLPC common shareholders $1.19 $1.22 $2.38 $2.78 ===== ===== ===== ===== Cash dividends declared per share $0.20 $0.20 $0.60 $0.60 ===== ===== ===== ===== Weighted-average number of shares outstanding - basic 5,235 5,218 5,231 5,298 ===== ===== ===== ===== Weighted-average number of shares outstanding - diluted 5,316 5,269 5,309 5,345 ===== ===== ===== ===== Amount attributable to PLPC common shareholders: Income from continuing operations, net of tax $6,320 $6,457 $12,626 $14,127 Discontinued operations, net of tax - (34) - 735 -- --- -- --- Net Income $6,320 $6,423 $12,626 $14,862 ====== ====== ======= ======= PREFORMED LINE PRODUCTS COMPANY CONSOLIDATED BALANCE SHEETS (UNAUDITED) September 30, December 31, Thousands of dollars, except share 2009 2008 and per share data ---- ---- ASSETS Cash and cash equivalents $35,520 $19,869 Accounts receivable, less allowances of $920 ($972 in 2008) 45,937 36,899 Inventories - net 48,439 48,412 Deferred income taxes 2,184 2,786 Prepaids and other 5,242 4,704 ----- ----- TOTAL CURRENT ASSETS 137,322 112,670 Property and equipment - net 61,124 55,940 Patents and other intangibles - net 3,505 3,858 Goodwill 6,436 5,520 Deferred income taxes 5,885 6,943 Other assets 7,072 5,944 ----- ----- TOTAL ASSETS $221,344 $190,875 ======== ======== LIABILITIES AND SHAREHOLDERS' EQUITY Notes payable to banks $3,301 $3,101 Current portion of long-term debt 967 494 Trade accounts payable 17,188 14,632 Accrued compensation and amounts withheld from employees 10,221 6,606 Accrued expenses and other liabilities 13,222 10,415 ------ ------ TOTAL CURRENT LIABILITIES 44,899 35,248 Long-term debt, less current portion 3,441 2,653 Other noncurrent liabilities and deferred income taxes 14,206 15,973 SHAREHOLDERS' EQUITY PLPC shareholders' equity: Common shares - $2 par value, 15,000,000 shares authorized, 5,234,039 and 5,223,830 issued and outstanding, net of 554,059 and 551,059 treasury shares at par, respectively 10,468 10,448 Paid in capital 5,369 3,704 Retained earnings 156,086 146,624 Accumulated other comprehensive loss (13,549) (24,511) ------- ------- TOTAL PLPC SHAREHOLDERS' EQUITY 158,374 136,265 ------- ------- Noncontrolling interest 424 736 --- --- TOTAL SHAREHOLDERS' EQUITY 158,798 137,001 ------- ------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $221,344 $190,875 ======== ========

SOURCE Preformed Line Products Company

Source: PR Newswire

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