Preformed Line Products Company (PLPC, Financial) filed Quarterly Report for the period ended 2012-06-30.
Preformed Line Products Company has a market cap of $287.6 million; its shares were traded at around $54.42 with a P/E ratio of 9.1 and P/S ratio of 0.7. The dividend yield of Preformed Line Products Company stocks is 1.5%. Preformed Line Products Company had an annual average earning growth of 16.6% over the past 10 years. GuruFocus rated Preformed Line Products Company the business predictability rank of 4-star.
For the six month period ended June 30, 2012, net sales of $220.8 million increased $11.2 million, or 5%, compared to 2011. The fluctuations of foreign currencies during the six month period ended June 30, 2012 had an unfavorable impact on net sales of $7.2 million as compared to 2011. Excluding the impact of currency translation of $7.3 million, sales increased nearly 9%. As a percentage of net sales, gross profit was 33% of net sales for each of the six month periods ended June 30, 2012 and 2011. Excluding the effect of currency translation of $2.3 million, gross profit increased $6.2 million, or 9%, compared to 2011. Excluding the effect of currency translation, costs and expenses of $51.2 million increased $6.5 million, or 14%, compared to 2011. Excluding the effect of currency translation and as a result of the preceding factors, operating income for the six month period ended June 30, 2012 of $21.8 million decreased $.5 million compared to 2011. Net income for the six month period ended June 30, 2012 of $14.7 million decreased $.7 million compared to 2011. Excluding the effect of currency translation, net income remained unchanged compared to 2011.
PLP-USA costs and expenses increased $1.7 million primarily due to changes in net currency exchange of $1.5 million coupled with an increase in commissions of $.3 million, personnel related costs of $.3 million, advertising costs of $.1 million and higher travel expenses of $.1 million partially offset by a decrease in consulting expenses of $.7 million and an increase in intercompany interest income. The changes in net currency exchange were related to intercompany receivables and loans. International costs and expenses for the three month period ended June 30, 2012 were favorably impacted by $1.2 million when local currencies were translated to U.S. dollar. The following discussions of costs and expenses exclude the effect of currency translation. The Americas costs and expenses increased $.7 million primarily due to an increase in personnel related costs in the region, coupled with higher intercompany related expenses of $.1 million partially offset by $.2 million related to lower sales commissions coupled with $.3 million related to net foreign currency exchange gains in 2011. EMEA costs and expenses increased $.1 million primarily due to $.7 million related to net foreign currency exchange gains in 2011 coupled with an increase in personnel related costs and higher intercompany related expenses in the region. Asia-Pacific costs and expenses increased $1.6 million compared to 2011. An acquisition on January 31, 2012 added $.9 million to cost and expenses (including $.2 million related to intangible assets amortization expense) compared to 2011. The remaining increase in Asia-Pacific costs and expenses was due to personnel related costs in the region coupled with a net foreign currency exchange gain of $.2 million in 2011 partially offset by lower commissions of $.1 million.
The increase in PLP-USA net sales of $13.9 million, or 20%, was primarily due to $8.4 million related to sales volume and $5.5 million due to price/mix. International net sales for the six month period ended June 30, 2012 were unfavorably affected by $7.3 million when local currencies were converted to U.S. dollars. The following discussions of changes in net sales exclude the effect of currency translation. The Americas net sales increase of $.7 million, or 1%, increased primarily due to an increase in energy sales volume in the region of $4.7 million partially offset by lower solar sales of $4 million. EMEA net sales of $31.7 million increased $4.4 million, or 14%, primarily due to an overall increase in sales volume in the region. In Asia-Pacific, net sales of $58.7 million decreased $.6 million, or 1%, compared to 2011. The decrease in net sales was primarily due to lower organic sales volume in the region partially offset by a $6.2 million related to an acquisition entered into on January 31, 2012.
PLP-USA gross profit of $31.4 million increased $5.9 million compared to 2011. PLP-USA gross profit increased $5.9 million due to higher net sales coupled with an improvement in production margins partially offset by higher material costs and an increase in employee related costs of $.5 million, of which $.3 million related to higher pension costs, higher warranty expenses of $.6 million, and higher repairs and maintenance of $.4 million for the six month period ended June 30, 2012. International gross profit for the six month period ended June 30, 2012 was unfavorably impacted by $2.3 million when local currencies were translated to U.S. dollars. The following discussion of gross profit changes excludes the effect of currency translation. The Americas gross profit decrease of $.3 million was primarily the result of lower production margins of $1.5 million partially offset by an increase in net sales. The EMEA gross profit increase of $3.5 million was primarily a result of $1.4 million from higher net sales coupled with better product margins of $2.1 million in the region. Asia-Pacific gross profit of $16.8 million decreased $2.9 million compared to 2011. Asia-Pacifics gross profit decreased due to lower organic net sales in the region partially offset by $.8 million of gross profit related to the acquisition entered into on January 31, 2012. The $3.7 million decrease in the region excluding the acquisition entered into on January 31, 2012 was primarily due to $1.8 million as a result of lower net sales coupled with $1.9 million due to lower product margins.
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Preformed Line Products Company has a market cap of $287.6 million; its shares were traded at around $54.42 with a P/E ratio of 9.1 and P/S ratio of 0.7. The dividend yield of Preformed Line Products Company stocks is 1.5%. Preformed Line Products Company had an annual average earning growth of 16.6% over the past 10 years. GuruFocus rated Preformed Line Products Company the business predictability rank of 4-star.
Highlight of Business Operations:
For the three month period ended June 30, 2012, net sales of $111.9 million decreased $2.6 million, or 2%, compared to 2011. The fluctuations of foreign currencies during the three month period ended June 30, 2012 had an unfavorable impact on net sales of $6.3 million as compared to 2011. Excluding the impact on currency translation, sales increased 3%. As a percentage of net sales, gross profit was 33% and 32% of net sales for the three month periods ended June 30, 2012 and 2011, respectively. Excluding the effect of currency translation of $1.9 million, gross profit increased $2.2 million, or 6%, compared to 2011. Excluding the effect of currency translation of $1 million, costs and expenses of $27.3 million increased $4.8 million, or 20%, compared to 2011. Excluding the effect of currency translation and as a result of the preceding factors, operating income for the three month period ended June 30, 2012 of $9.7 million decreased $2.8 million compared to 2011. Net income for the three month period ended June 30, 2012 of $6.6 million decreased $1.9 million compared to 2011. Excluding the effect of currency translation, net income decreased $1.4 million, or 17%, compared to 2011.For the six month period ended June 30, 2012, net sales of $220.8 million increased $11.2 million, or 5%, compared to 2011. The fluctuations of foreign currencies during the six month period ended June 30, 2012 had an unfavorable impact on net sales of $7.2 million as compared to 2011. Excluding the impact of currency translation of $7.3 million, sales increased nearly 9%. As a percentage of net sales, gross profit was 33% of net sales for each of the six month periods ended June 30, 2012 and 2011. Excluding the effect of currency translation of $2.3 million, gross profit increased $6.2 million, or 9%, compared to 2011. Excluding the effect of currency translation, costs and expenses of $51.2 million increased $6.5 million, or 14%, compared to 2011. Excluding the effect of currency translation and as a result of the preceding factors, operating income for the six month period ended June 30, 2012 of $21.8 million decreased $.5 million compared to 2011. Net income for the six month period ended June 30, 2012 of $14.7 million decreased $.7 million compared to 2011. Excluding the effect of currency translation, net income remained unchanged compared to 2011.
PLP-USA costs and expenses increased $1.7 million primarily due to changes in net currency exchange of $1.5 million coupled with an increase in commissions of $.3 million, personnel related costs of $.3 million, advertising costs of $.1 million and higher travel expenses of $.1 million partially offset by a decrease in consulting expenses of $.7 million and an increase in intercompany interest income. The changes in net currency exchange were related to intercompany receivables and loans. International costs and expenses for the three month period ended June 30, 2012 were favorably impacted by $1.2 million when local currencies were translated to U.S. dollar. The following discussions of costs and expenses exclude the effect of currency translation. The Americas costs and expenses increased $.7 million primarily due to an increase in personnel related costs in the region, coupled with higher intercompany related expenses of $.1 million partially offset by $.2 million related to lower sales commissions coupled with $.3 million related to net foreign currency exchange gains in 2011. EMEA costs and expenses increased $.1 million primarily due to $.7 million related to net foreign currency exchange gains in 2011 coupled with an increase in personnel related costs and higher intercompany related expenses in the region. Asia-Pacific costs and expenses increased $1.6 million compared to 2011. An acquisition on January 31, 2012 added $.9 million to cost and expenses (including $.2 million related to intangible assets amortization expense) compared to 2011. The remaining increase in Asia-Pacific costs and expenses was due to personnel related costs in the region coupled with a net foreign currency exchange gain of $.2 million in 2011 partially offset by lower commissions of $.1 million.
The increase in PLP-USA net sales of $13.9 million, or 20%, was primarily due to $8.4 million related to sales volume and $5.5 million due to price/mix. International net sales for the six month period ended June 30, 2012 were unfavorably affected by $7.3 million when local currencies were converted to U.S. dollars. The following discussions of changes in net sales exclude the effect of currency translation. The Americas net sales increase of $.7 million, or 1%, increased primarily due to an increase in energy sales volume in the region of $4.7 million partially offset by lower solar sales of $4 million. EMEA net sales of $31.7 million increased $4.4 million, or 14%, primarily due to an overall increase in sales volume in the region. In Asia-Pacific, net sales of $58.7 million decreased $.6 million, or 1%, compared to 2011. The decrease in net sales was primarily due to lower organic sales volume in the region partially offset by a $6.2 million related to an acquisition entered into on January 31, 2012.
PLP-USA gross profit of $31.4 million increased $5.9 million compared to 2011. PLP-USA gross profit increased $5.9 million due to higher net sales coupled with an improvement in production margins partially offset by higher material costs and an increase in employee related costs of $.5 million, of which $.3 million related to higher pension costs, higher warranty expenses of $.6 million, and higher repairs and maintenance of $.4 million for the six month period ended June 30, 2012. International gross profit for the six month period ended June 30, 2012 was unfavorably impacted by $2.3 million when local currencies were translated to U.S. dollars. The following discussion of gross profit changes excludes the effect of currency translation. The Americas gross profit decrease of $.3 million was primarily the result of lower production margins of $1.5 million partially offset by an increase in net sales. The EMEA gross profit increase of $3.5 million was primarily a result of $1.4 million from higher net sales coupled with better product margins of $2.1 million in the region. Asia-Pacific gross profit of $16.8 million decreased $2.9 million compared to 2011. Asia-Pacifics gross profit decreased due to lower organic net sales in the region partially offset by $.8 million of gross profit related to the acquisition entered into on January 31, 2012. The $3.7 million decrease in the region excluding the acquisition entered into on January 31, 2012 was primarily due to $1.8 million as a result of lower net sales coupled with $1.9 million due to lower product margins.
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