Preformed Line Products Announces Third Quarter And First Nine Months Of 2019 Results

MAYFIELD VILLAGE, Ohio, Nov. 1, 2019 /PRNewswire/ -- Preformed Line Products Company (NASDAQ:  PLPC) today reported financial results for its third quarter and first nine months of 2019.

Net income for the quarter ended September 30, 2019 was $8.0 million, or $1.55 per diluted share, compared to $9.1 million, or $1.76 per diluted share, for the comparable period in 2018.

Net sales in the third quarter of 2019 increased 10% to $119.2 million compared to $108.4 million in the third quarter of 2018.

Net income for the nine months ended September 30, 2019 was $17.7 million, or $3.48 per diluted share, compared to $21.3 million, or $4.19 per diluted share, for the comparable period in 2018.

Net sales increased 5% to $331.2 million for the first nine months of 2019 compared to $315.5 million in the first nine months of 2018.

The Company's results for the third quarter and first nine months of 2018 benefitted from an adjustment to its 2017 estimated tax expense that it previously recorded associated with the U.S. Tax Cuts and Jobs Act in 2017.  The Company also recorded a one-time tax savings in September 2018, due to a pension contribution made during the third quarter.  Both events contributed to a lower effective tax rate and tax expense for the third quarter and first nine months of 2018 as compared to the same periods in 2019.  As a result, the 43% increase in third quarter 2019 income before income taxes over the same period last year did not lead to higher net income.

Currency translation rates negatively impacted net sales by $3.3 million for the quarter ended September 30, 2019 and $12.7 million for the first nine months of 2019.  Currency had no effect on net income for the quarter and a negative impact of $.2 million for the first nine months of 2019.

Rob Ruhlman, Chairman and Chief Executive Officer, said, "Once again, we achieved an all-time high in domestic sales for a quarter while we continued to grow at a double-digit pace across our international operations.  Our focus on the efficient use of our global manufacturing capacity delivered consistent product margins and resulted in increased overall gross profit margin as compared to the same period last year."

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 two domestic manufacturing centers located in Rogers, Arkansas, and Albemarle, North Carolina.  The Company serves its worldwide market through international operations in Argentina, Australia, Austria, Brazil, Canada, China, Colombia, Czech Republic, 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 and the mix of products sold, the relative degree of competitive and customer price pressure on the Company's products, the cost, availability and quality of raw materials required for the manufacture of products, and the Company's ability to continue to develop proprietary technology and maintain high quality products and customer service to meet or exceed new industry performance standards and individual customer expectations, and other factors described under the headings "Forward-Looking Statements" and "Risk Factors" in the Company's 2018 Annual Report on Form 10-K filed with the SEC on March 8, 2019 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.

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SOURCE Preformed Line Products Company