Preformed Line Products Announces Second Quarter and First Half 2011 Results

- Net income increased 38% for the second quarter and 113% for the first six months

- Net sales of $115 million represent a quarterly record

- Net sales increased 39% for the second quarter and for the first six months

- Earning per diluted share increased 37% for the second quarter and 113% for the first six months

News provided by

Aug 08, 2011, 07:29 ET

MAYFIELD VILLAGE, Ohio, Aug. 8, 2011 /PRNewswire/ -- Preformed Line Products Company (Nasdaq: PLPC) today reported financial results for the second quarter and the first six months of 2011.

Net income for the quarter ended June 30, 2011 increased 38% to $8,386,000, or $1.55 per diluted share, compared to $6,096,000 or $1.13 per diluted share, for the comparable period in 2010.

Net sales in the second quarter of 2011 were $114,530,000, an increase of 39% from sales of $82,137,000 in the second quarter of 2010.

Net income for the six months ended June 30, 2011 increased 113% to $15,384,000, or $2.85 per diluted share, compared to $7,228,000, or $1.34 per diluted share for the comparable period in 2010.

Net sales increased 39% to $209,618,000 for the first six months of 2011 compared to $151,045,000 in the first six months of 2010.

Currency exchange rates favorably impacted sales by $6,969,000 for the second quarter and $10,257,000 for the first six months of 2011, while the favorable impact on net income was $389,000 for the second quarter and $582,000 for the first six months of 2011.

Rob Ruhlman, Chairman and Chief Executive Officer, said, "We have now had two consecutive quarters of record sales with the 2nd quarter exceeding the $100 million threshold for the first time in the Company's history. Sales in all four of our segments have grown double digit percentages for the year. This includes sales in Europe, Middle East and Africa where the European economy is still struggling. Our net income is up 38% for the quarter and 113% for the year. We attribute our success to our global business combinations, newly developed products and improved demand."

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 headings "Risk Factors" and "Forward-Looking Statements" in the Company's 2010 Annual Report on Form 10-K filed with the SEC on March 11, 2011 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.

PREFORMED LINE PRODUCTS COMPANY
STATEMENTS OF CONSOLIDATED OPERATIONS
(UNAUDITED)

	In thousands, except per share data			Three month periods ended June 30,		Six month periods ended June 30,
				2011	2010	2011	2010


	Net sales			$ 114,530	$ 82,137	$ 209,618	$ 151,045
	Cost of products sold			77,824	54,682	140,521	103,565
			GROSS PROFIT	36,706	27,455	69,097	47,480

	Costs and expenses
		Selling		9,272	7,038	17,308	13,540
		General and administrative		11,780	9,666	22,742	19,144
		Research and engineering		3,215	2,700	6,577	5,559
		Other operating expense (income)		(694)	1,135	(788)	990
				23,573	20,539	45,839	39,233

			OPERATING INCOME	13,133	6,916	23,258	8,247

	Other income (expense)
		Interest income		140	94	291	177
		Interest expense		(266)	(126)	(477)	(296)
		Other income		43	409	227	760
				(83)	377	41	641

			INCOME BEFORE INCOME TAXES	13,050	7,293	23,299	8,888

	Income taxes			4,520	1,197	7,915	1,758

			NET INCOME	8,530	6,096	15,384	7,130

			Less net income (loss) attributable
			to noncontrolling interests, net of tax	144	-	-	(98)

			NET INCOME ATTRIBUTABLE TO PLPC	$ 8,386	$ 6,096	$ 15,384	$ 7,228

	BASIC EARNINGS PER SHARE
		Net Income to PLPC common shareholders		$ 1.59	$ 1.16	$ 2.92	$ 1.38

	DILUTED EARNINGS PER SHARE
		Net Income to PLPC common shareholders		$ 1.55	$ 1.13	$ 2.85	$ 1.34

	Cash dividends declared per share			$ 0.20	$ 0.20	$ 0.40	$ 0.40

	Weighted-average number of shares outstanding - basic			5,263	5,253	5,268	5,253

	Weighted-average number of shares outstanding - diluted			5,393	5,402	5,390	5,401

PREFORMED LINE PRODUCTS COMPANY
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)

			June 30,	December 31,
Thousands of dollars, except share and per share data			2011	2010

ASSETS
Cash and cash equivalents			$ 23,617	$ 22,655
Accounts receivable, less allowances of $1,639 ($1,213 in 2010)			74,970	56,102
Inventories - net			82,280	73,121
Deferred income taxes			5,341	4,784
Prepaids			12,834	9,069
Other current assets			1,769	1,611
		TOTAL CURRENT ASSETS	200,811	167,342

Property and equipment - net			80,571	76,266
Other intangibles - net			12,545	12,735
Goodwill			12,880	12,346
Deferred income taxes			3,792	3,615
Other assets			10,697	8,675

		TOTAL ASSETS	$ 321,296	$ 280,979

LIABILITIES AND SHAREHOLDERS' EQUITY

Notes payable to banks			$ 6,465	$ 1,246
Current portion of long-term debt			722	1,276
Trade accounts payable			27,623	27,001
Accrued compensation and amounts withheld from employees			14,482	9,848
Accrued expenses and other liabilities			23,256	17,187
		TOTAL CURRENT LIABILITIES	72,548	56,558

Long-term debt, less current portion			14,189	9,374
Other noncurrent liabilities and deferred income taxes			20,165	19,582

SHAREHOLDERS' EQUITY
PLPC shareholders' equity:
	Common shares - $2 par value, 15,000,000 shares authorized,
	5,258,210 and 5,270,977 issued and outstanding,
	net of 623,138 and 586,746 treasury shares at par, respectively		10,516	10,542
	Common shares issued to Rabbi Trust		(1,260)	(1,200)
	Paid in capital		11,307	8,748
	Retained earnings		194,075	184,060
	Accumulated other comprehensive loss		(244)	(6,010)
		TOTAL PLPC SHAREHOLDERS' EQUITY	214,394	196,140
Noncontrolling interest			-	(675)
		TOTAL SHAREHOLDERS' EQUITY	214,394	195,465

		TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 321,296	$ 280,979