MAYFIELD VILLAGE, Ohio, May 5, 2015 /PRNewswire/ -- Preformed Line Products Company (NASDAQ: PLPC) today reported financial results for its first quarter ended March 31, 2015.

Net sales for the first quarter of 2015 were $85,790,000, down 5% compared to $89,925,000 in the first quarter of 2014. 

The Company posted a net loss for the first quarter 2015 of $256,000, or $.05 per share, compared to net income of $2,738,000, or $.50 per diluted share, in the first quarter of 2014.

Currency translation rates had a negative impact on 2015 first quarter net sales of $6,484,000 and a negligible impact on net income.  However, losses on foreign currency transactions had an unfavorable impact of $3,354,000 on pre-tax income.

Rob Ruhlman, Chairman and Chief Executive Officer, said, "Exceptionally weak foreign currencies eroded sales and net income during the first quarter.  Excluding the impact of foreign currency translation, the Company delivered sales growth of 3%.  Unrealized losses on intercompany receivables and payables had a negative $3 million impact on pretax earnings compared to a favorable impact of $700,000 in the first quarter of 2014.  We also incurred over $500,000 of restructuring charges in the first quarter of 2015.  Excluding the impact of the unrealized foreign currency transactions and restructuring costs, our operating income improved over the first quarter of 2014.  We continue to focus on tightly controlling our expenses and maximizing our global sourcing capabilities to mitigate the impact of geopolitical factors on our business."

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 2014 Annual Report on Form 10-K filed with the SEC on March 12, 2015 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 Months Ended March 31,







2015


2014





















Net sales


$                  85,790


$                 89,925



Cost of products sold


61,030


62,477





GROSS PROFIT


24,760


27,448












Costs and expenses








Selling


7,207


8,505




General and administrative


10,186


11,158




Research and engineering


3,721


3,775




Other operating expense (income) - net


3,731


(203)







24,845


23,235














OPERATING INCOME (LOSS)


(85)


4,213












Other income (expense)








Interest income


102


109




Interest expense


(133)


(161)




Other income (expense) - net


57


(24)







26


(76)














INCOME (LOSS) BEFORE INCOME TAXES 


(59)


4,137












Income taxes


197


1,399














NET INCOME (LOSS)


$                     (256)


$                   2,738












BASIC EARNINGS PER SHARE








Net Income (Loss) to PLPC common shareholders


$                    (0.05)


$                     0.51












DILUTED EARNINGS PER SHARE








Net Income (Loss) to PLPC common shareholders


$                    (0.05)


$                     0.50












Cash dividends declared per share


$                      0.20


$                     0.20












Weighted-average number of shares outstanding - basic


5,396


5,392












Weighted-average number of shares outstanding - diluted


5,396


5,431











 

PREFORMED LINE PRODUCTS COMPANY

CONSOLIDATED BALANCE SHEETS











March 31,


December 31,

Thousands of dollars, except share and per share data

2015


2014




(Unaudited)



ASSETS




Cash and cash equivalents

$              30,530


$              29,643

Accounts receivable, less allowances of $2,383 ($2,370 in 2014)

63,426


67,942

Inventories - net

76,097


80,037

Deferred income taxes 

8,052


7,249

Prepaids

8,840


9,167

Other current assets

4,262


6,625



TOTAL CURRENT ASSETS

191,207


200,663







Property, plant and equipment - net

97,886


102,531

Other intangibles - net

13,016


14,121

Goodwill

16,958


17,792

Deferred income taxes 

7,044


5,773

Other assets

11,758


13,087









TOTAL ASSETS

$            337,869


$            353,967







LIABILITIES AND SHAREHOLDERS' EQUITY










Notes payable to banks

$                1,735


$                1,809

Current portion of long-term debt

111


116

Trade accounts payable

19,572


22,332

Accrued compensation and amounts withheld from employees

10,318


9,876

Accrued expenses and other liabilities

16,980


21,194



TOTAL CURRENT LIABILITIES

48,716


55,327







Long-term debt, less current portion

30,741


31,749

Other noncurrent liabilities and deferred income taxes

25,045


23,966







SHAREHOLDERS' EQUITY




PLPC shareholders' equity:





Common shares - $2 par value, 15,000,000 shares authorized, 5,393,371 and





    5,397,138 issued and outstanding, net of 824,011 and 819,424 treasury





    shares at par, respectively, as of March 31, 2015 and December 31, 2014

10,787


10,794


Common shares issued to Rabbi Trust, 289,942 and 292,609 shares at





     March 31, 2015 and December 31, 2014

(11,617)


(11,790)


Deferred Compensation Liability

11,617


11,790


Paid-in capital

23,342


22,795


Retained earnings

242,900


244,470


Accumulated other comprehensive loss

(43,662)


(35,134)



TOTAL SHAREHOLDERS' EQUITY

233,367


242,925









TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$            337,869


$            353,967







 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/preformed-line-products-announces-financial-results-for-the-quarter-ended-march-31-2015-300077625.html

SOURCE Preformed Line Products Company

Copyright 2015 PR Newswire

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