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Preformed Line Products Announces Financial Results For The Quarter Ended March 31, 2014

Companies mentioned in this article: Preformed Line Products Company

MAYFIELD VILLAGE, Ohio, May 2, 2014 /PRNewswire/ -- Preformed Line Products Company (NASDAQ: PLPC) today reported financial results for the first quarter ended March 31, 2014.

Net income for the quarter ended March 31, 2014 was $2,738,000, or $.50 per diluted share, compared to $4,965,000, or $.91 per diluted share, for the comparable period in 2013.

Net sales for the first quarter of 2014 were $89,925,000 compared to $98,689,000 in the first quarter of 2013.

Currency exchange rates had a negative impact on 2014 first quarter net sales and net income of $4,436,000 and $119,000, respectively.

Rob Ruhlman, Chairman and Chief Executive Officer, said, "First quarter results were certainly disappointing, particularly in comparison to previous periods that involved significant spending by the utilities on transmission projects. There are no similar projects taking place at this time. In fact, the ongoing extreme weakness in the U.S. economy coupled with a peculiarly harsh and extended winter has placed a significant damper on both new construction and maintenance activities. Globally, we are operating in a slow to no growth, yet highly competitive environment which we are addressing through constant innovation, exceptional customer service and a constant focus on improving productivity."

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, telecommunication, cable operators, information (data communication), and other similar industries. Our primary products support, protect, connect, terminate, and secure cables and wires. We also provide solar hardware systems and mounting hardware for a variety of solar power applications.

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 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, and other factors described under the headings "Forward-Looking Statements" and "Risk Factors" 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.

                     PREFORMED LINE PRODUCTS COMPANY

                  STATEMENTS OF CONSOLIDATED OPERATIONS

                               (UNAUDITED)


    In thousands, except per              Three month periods ended
     share data                                   March 31,
                                         --------------------------

                                             2014                  2013
                                             ----                  ----



    Net sales                             $89,925               $98,689

    Cost of products sold                  62,477                67,390
                                           ------                ------

        GROSS PROFIT                       27,448                31,299


    Costs and expenses

      Selling                               8,505                 9,061

      General and
       administrative                      11,158                11,480

      Research
       and
       engineering                          3,775                 3,770

      Other
       operating
       expense
       (income)                              (203)                  121
                                             ----                   ---

                                           23,235                24,432


        OPERATING INCOME                    4,213                 6,867


    Other income (expense)

      Interest
       income                                 109                   116

      Interest
       expense                               (161)                 (103)

      Other
       income
       (expense)                              (24)                   37
                                              ---                   ---

                                              (76)                   50
                                              ---                   ---


        INCOME BEFORE INCOME TAXES          4,137                 6,917


    Income taxes                            1,399                 1,952
                                            -----                 -----


        NET INCOME                         $2,738                $4,965
                                           ======                ======


    BASIC EARNINGS PER SHARE

      Net Income
       to PLPC
       common
       shareholders                         $0.51                 $0.92
                                            =====                 =====


    DILUTED EARNINGS PER SHARE

      Net Income
       to PLPC
       common
       shareholders                         $0.50                 $0.91
                                            =====                 =====


    Cash dividends declared per
     share                                  $0.20                    $0
                                            =====                   ===


    Weighted-average number of
     shares outstanding -
     basic                                  5,392                 5,377
                                            =====                 =====


    Weighted-average number of
     shares outstanding -
     diluted                                5,431                 5,457
                                            =====                 =====


                                                       PREFORMED LINE PRODUCTS COMPANY

                                                         CONSOLIDATED BALANCE SHEETS

                                                                 (UNAUDITED)


                                                                           March 31,             December 31,

    Thousands of dollars, except share and
     per share data                                                                        2014                   2013
                                                                                           ----                   ----


    ASSETS

    Cash and cash equivalents                                                           $21,173                $24,291

    Accounts receivable, less allowances of
     $2,100 ($2,136 in 2013)                                                             74,957                 67,587

    Inventories - net                                                                    79,638                 73,835

    Deferred income taxes                                                                 6,463                  7,022

    Prepaids                                                                             10,333                  9,845

    Other current assets                                                                  3,736                  3,154
                                                                                          -----                  -----

                       TOTAL CURRENT ASSETS                                             196,300                185,734


    Property, plant and equipment - net                                                 105,146                100,461

    Other intangibles - net                                                              16,549                 11,787

    Goodwill                                                                             19,181                 13,873

    Deferred income taxes                                                                 3,922                  3,416

    Other assets                                                                         17,486                 17,135
                                                                                         ------                 ------


                       TOTAL ASSETS                                                    $358,584               $332,406
                                                                                       ========               ========


    LIABILITIES AND SHAREHOLDERS' EQUITY


    Notes payable to banks                                                               $2,923                 $1,105

    Current portion of long-term debt                                                       162                    195

    Trade accounts payable                                                               22,483                 21,750

    Accrued compensation and amounts
     withheld from employees                                                             11,856                 10,787

    Accrued expenses and other liabilities                                               14,938                 18,378
                                                                                         ------                 ------

                       TOTAL CURRENT LIABILITIES                                         52,362                 52,215


    Long-term debt, less current portion                                                 32,931                 13,054

    Other noncurrent liabilities and
     deferred income taxes                                                               17,881                 14,807


    SHAREHOLDERS' EQUITY

    PLPC shareholders' equity:

                        Common shares -$2
                        par value,
                        15,000,000 shares
                        authorized,
                        5,388,733 and
                        5,391,074 issued
                        and outstanding,
                        net of 783,418
                        and 779,279
                        treasury shares
                        at par,
                        respectively, as
                        of March 31, 2014
                        and December 31,
                        2013                                                             10,777                 10,782

                        Common shares
                        issued to Rabbi
                        Trust, 249,198
                        and 253,156
                        shares at March
                        31, 2014 and
                        December 31, 2013                                                (9,156)                (9,306)

                        Deferred
                        Compensation
                        Liability                                                         9,156                  9,306

                       Paid in capital                                                   21,955                 21,082

                       Retained earnings                                                239,548                238,168

                        Accumulated other
                        comprehensive
                        loss                                                            (15,870)               (17,702)

                       TOTAL SHAREHOLDERS' EQUITY                                       256,410                252,330
                                                                                        -------                -------


                        TOTAL LIABILITIES AND SHAREHOLDERS'
                        EQUITY                                                         $359,584               $332,406
                                                                                       ========               ========

SOURCE Preformed Line Products Company