Preformed Line Products Company (PLPC, Financial) filed Quarterly Report for the period ended 2009-09-30.
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 Line Products Company has a market cap of $204.6 million; its shares were traded at around $39.06 with a P/E ratio of 13.4 and P/S ratio of 0.8. The dividend yield of Preformed Line Products Company stocks is 2.1%. Preformed Line Products Company had an annual average earning growth of 42.3% over the past 5 years.
The decrease in PLP-USA net sales of $3 million, or 10%, was primarily due to a $2.9 million sales volume decrease due to a decline in the domestic economy. International net sales were unfavorably affected by $4 million when converted to U.S. dollars, as a result of a stronger U.S. dollar to certain foreign currencies. Excluding the effect of currency translation, Australia net sales remained flat compared to 2008. Excluding the effect of currency translation, Brazil net sales increased $2.1 million, or 25%, primarily as a result of higher sales volume in their energy markets. Excluding the effect of currency translation, South Africa net sales decreased $.1 million, or 3%, primarily due to lower sales volume in their markets. Excluding the effect of currency translation, Canada net sales increased $.4 million, or 16%, due to higher sales volume in their markets. Excluding the effect of currency translation, Poland net sales decreased $2.9 million, or 41%, primarily due to a decrease in domestic sales volume driven by the current economic conditions in the country. Excluding the effect of currency translation, All Other net sales increased $2.7 million, or 18%, due to an increase in sales volume/mix. We continue to see competitive pricing pressures globally as well as a decline in the global economy which we expect will continue to negatively affect sales and profitability for the remainder of 2009.
PLP-USA gross profit of $10.2 million decreased $.5 million, or 5%. The $.5 million decrease in gross profit was a result of $1.1 million decrease in gross profit on lower sales volume partially offset by improved product margins. Excluding the effect of currency translation, the Australia gross profit decrease of $.2 million was a result of higher material costs due to product mix of $.5 million partially offset by an improvement in manufacturing efficiencies. Excluding the effect of currency translation, the Brazil gross profit increase of $.8 million was primarily due to a $.7 million increase on higher net sales coupled with improved production margins. Excluding the effect of currency translation, South Africa gross profit decreased $.5 million due primarily to a $.3 million increase in higher material costs coupled with an increase in manufacturing costs primarily due to the product mix compared to 2008. Excluding the effect of currency translation, Canada gross profit increased $.2 million primarily due to an increase in net sales. Excluding the effect of currency translation, Polands gross profit decrease of $1 million was the result of $.9 million from lower net sales volume coupled with lower production margins partially offset by lower material costs of $.2 million. Excluding the effect of currency translation, All Other gross profit increased $1.7 million primarily as a result of $1.2 million increase from higher sales volume coupled with higher production margins.
PLP-USA costs and expenses increased $.6 million primarily due to an increase in personnel related costs of $.9 million, repairs and maintenance of $.5 million, and acquisition-related costs of $.3 million, partially offset by lower commissions related to lower sales and the mix of commissionable sales of $.1 million, an increase in the cash surrender value of life insurance policies of $.2 million, a gain of foreign currency transactions of $.6 million, a decrease in advertising expenses of $.2 million, and legal expense of $.1 million. Excluding the effect of currency translation, Australia costs and expenses decreased $.1 million primarily due to lower legal expense coupled with less foreign currency transaction expenses partially offset by higher personnel related costs due to the acquisition of BlueSky Energy Pty Ltd, and acquisition-related costs. Excluding the effect of currency translation, Brazil costs and expenses increased less than $.1 million primarily due to an increase in consulting, commissions and research and engineering expenses partially offset by the payments received by customers whose balances were previously reserved against in 2008. Excluding the effect of currency translation, South Africas costs and expenses increased $.1 million primarily due to personnel related costs, consulting, travel, and building maintenance expenses. Excluding the effect of currency translation, Canada and Polands costs and expenses remained relatively unchanged compared to 2008. Excluding the effect of currency translation, All Other costs and expenses increased $.2 million primarily due to personnel related costs and commissions.
Operating income. Operating income of $8.2 million for the three month period ended September 30, 2009 decreased $1 million, or 11%, compared to the three month period ended September 30, 2008 primarily due to the $.9 million decrease in gross profit coupled with an increase in costs and expenses of $.1 million. PLP-USA operating income of $2.9 million decreased $.9 million primarily as a result of the $.5 million decrease in gross profit coupled with a $.6 million increase in costs and expenses partially offset by an increase in intercompany royalty income. International operating income was unfavorably affected by $.6 million when converted to U.S. dollars as a result of a stronger U.S. dollar to certain foreign currencies. Excluding the effect of currency translation, Australia operating income decreased $.1 million as a result of the $.2 million decrease in gross profit partially offset by a $.1 million decrease in costs and expenses. Excluding the effect of currency translation, Brazil operating income increased $.8 million primarily as a result of the increase in gross profit. Excluding the effect of currency translation, South Africa operating income decreased $.6 million as a result of the $.5 million decrease in gross profit coupled with a $.1 million increase in costs and expenses. Excluding the effect of currency translation, Canada operating income increased $.2 million primarily as a result of an increase in gross profit. Excluding the effect of currency translation, Poland operating income decreased $1 million primarily as a result of a decrease in gross profit. Excluding the effect of currency translation, All Other operating income increased $1.3 million primarily as a result of the $1.7 million increase in gross profit partially offset by a $.2 million increase in costs and expenses and a $.2 million increase in intercompany royalty expense.
PLP-USA income from continuing operations, net of tax, decreased $.4 million as a result of the $.9 million decrease in operating income partially offset by lower income taxes of $.5 million and an increase in other income. Excluding the effect of currency translation, Australia income from continuing operations, net of tax, decreased $.1 million due to a $.1 decrease in operating income coupled with a decrease in other income partially offset by lower income taxes of $.1 million. Excluding the effect of currency translation, Brazil income from continuing operations, net of tax, increased $.5 million as a result of an increase in operating income of $.8 million partially offset by an increase in income taxes. Excluding the effect of currency translation, South Africa income from continuing operations, net of tax, decreased $.5 million as a result of a decrease in operating income of $.6 million partially offset by lower income taxes of $.1 million. Excluding the effect of currency translation, Canada income from continuing operations, net of tax, increased $.1 million primarily as a result of a $.2 million increase in operating income partially offset by an increase in income taxes. Excluding the effect of currency translation, Poland income from continuing operations, net of tax, decreased $.7 million primarily as a result of a $1 million decrease in operating income partially offset by a decrease in income taxes. Excluding the effect of currency translation, All Other income from continuing operations, net of tax increased $1 million primarily as a result of the $1.3 million increase in operating income partially offset by an increase in income taxes of $.1 million coupled with lower other income.
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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 Line Products Company has a market cap of $204.6 million; its shares were traded at around $39.06 with a P/E ratio of 13.4 and P/S ratio of 0.8. The dividend yield of Preformed Line Products Company stocks is 2.1%. Preformed Line Products Company had an annual average earning growth of 42.3% over the past 5 years.
Highlight of Business Operations:
Our net sales for the nine month period ended September 30, 2009 decreased $21.8 million, or 10%, and gross profit decreased $5.1 million, or 7%, compared to the nine month period ended September 30, 2008. Excluding the effect of currency translation, net sales decreased 2%. During the first nine months of 2009, certain of the end markets that we serve continued to see further sales declines. Gross profit decreased $5.1 million, or 7%, primarily due to the decrease in net sales. Excluding the effect of currency translation, gross profit increased 1% compared to 2008. Excluding the effect of currency translation, costs and expenses increased $2.2 million, or 5%, as foreign costs and expenses increased $1.4 million and U.S. costs and expenses increased $.8 million. As a result, income from continuing operations, net of tax, of $12.5 million, decreased $1.9 million, or 13%, compared to 2008. Excluding the effect of currency translation, income from continuing operations, net of tax, decreased 5% compared to 2008.The decrease in PLP-USA net sales of $3 million, or 10%, was primarily due to a $2.9 million sales volume decrease due to a decline in the domestic economy. International net sales were unfavorably affected by $4 million when converted to U.S. dollars, as a result of a stronger U.S. dollar to certain foreign currencies. Excluding the effect of currency translation, Australia net sales remained flat compared to 2008. Excluding the effect of currency translation, Brazil net sales increased $2.1 million, or 25%, primarily as a result of higher sales volume in their energy markets. Excluding the effect of currency translation, South Africa net sales decreased $.1 million, or 3%, primarily due to lower sales volume in their markets. Excluding the effect of currency translation, Canada net sales increased $.4 million, or 16%, due to higher sales volume in their markets. Excluding the effect of currency translation, Poland net sales decreased $2.9 million, or 41%, primarily due to a decrease in domestic sales volume driven by the current economic conditions in the country. Excluding the effect of currency translation, All Other net sales increased $2.7 million, or 18%, due to an increase in sales volume/mix. We continue to see competitive pricing pressures globally as well as a decline in the global economy which we expect will continue to negatively affect sales and profitability for the remainder of 2009.
PLP-USA gross profit of $10.2 million decreased $.5 million, or 5%. The $.5 million decrease in gross profit was a result of $1.1 million decrease in gross profit on lower sales volume partially offset by improved product margins. Excluding the effect of currency translation, the Australia gross profit decrease of $.2 million was a result of higher material costs due to product mix of $.5 million partially offset by an improvement in manufacturing efficiencies. Excluding the effect of currency translation, the Brazil gross profit increase of $.8 million was primarily due to a $.7 million increase on higher net sales coupled with improved production margins. Excluding the effect of currency translation, South Africa gross profit decreased $.5 million due primarily to a $.3 million increase in higher material costs coupled with an increase in manufacturing costs primarily due to the product mix compared to 2008. Excluding the effect of currency translation, Canada gross profit increased $.2 million primarily due to an increase in net sales. Excluding the effect of currency translation, Polands gross profit decrease of $1 million was the result of $.9 million from lower net sales volume coupled with lower production margins partially offset by lower material costs of $.2 million. Excluding the effect of currency translation, All Other gross profit increased $1.7 million primarily as a result of $1.2 million increase from higher sales volume coupled with higher production margins.
PLP-USA costs and expenses increased $.6 million primarily due to an increase in personnel related costs of $.9 million, repairs and maintenance of $.5 million, and acquisition-related costs of $.3 million, partially offset by lower commissions related to lower sales and the mix of commissionable sales of $.1 million, an increase in the cash surrender value of life insurance policies of $.2 million, a gain of foreign currency transactions of $.6 million, a decrease in advertising expenses of $.2 million, and legal expense of $.1 million. Excluding the effect of currency translation, Australia costs and expenses decreased $.1 million primarily due to lower legal expense coupled with less foreign currency transaction expenses partially offset by higher personnel related costs due to the acquisition of BlueSky Energy Pty Ltd, and acquisition-related costs. Excluding the effect of currency translation, Brazil costs and expenses increased less than $.1 million primarily due to an increase in consulting, commissions and research and engineering expenses partially offset by the payments received by customers whose balances were previously reserved against in 2008. Excluding the effect of currency translation, South Africas costs and expenses increased $.1 million primarily due to personnel related costs, consulting, travel, and building maintenance expenses. Excluding the effect of currency translation, Canada and Polands costs and expenses remained relatively unchanged compared to 2008. Excluding the effect of currency translation, All Other costs and expenses increased $.2 million primarily due to personnel related costs and commissions.
Operating income. Operating income of $8.2 million for the three month period ended September 30, 2009 decreased $1 million, or 11%, compared to the three month period ended September 30, 2008 primarily due to the $.9 million decrease in gross profit coupled with an increase in costs and expenses of $.1 million. PLP-USA operating income of $2.9 million decreased $.9 million primarily as a result of the $.5 million decrease in gross profit coupled with a $.6 million increase in costs and expenses partially offset by an increase in intercompany royalty income. International operating income was unfavorably affected by $.6 million when converted to U.S. dollars as a result of a stronger U.S. dollar to certain foreign currencies. Excluding the effect of currency translation, Australia operating income decreased $.1 million as a result of the $.2 million decrease in gross profit partially offset by a $.1 million decrease in costs and expenses. Excluding the effect of currency translation, Brazil operating income increased $.8 million primarily as a result of the increase in gross profit. Excluding the effect of currency translation, South Africa operating income decreased $.6 million as a result of the $.5 million decrease in gross profit coupled with a $.1 million increase in costs and expenses. Excluding the effect of currency translation, Canada operating income increased $.2 million primarily as a result of an increase in gross profit. Excluding the effect of currency translation, Poland operating income decreased $1 million primarily as a result of a decrease in gross profit. Excluding the effect of currency translation, All Other operating income increased $1.3 million primarily as a result of the $1.7 million increase in gross profit partially offset by a $.2 million increase in costs and expenses and a $.2 million increase in intercompany royalty expense.
PLP-USA income from continuing operations, net of tax, decreased $.4 million as a result of the $.9 million decrease in operating income partially offset by lower income taxes of $.5 million and an increase in other income. Excluding the effect of currency translation, Australia income from continuing operations, net of tax, decreased $.1 million due to a $.1 decrease in operating income coupled with a decrease in other income partially offset by lower income taxes of $.1 million. Excluding the effect of currency translation, Brazil income from continuing operations, net of tax, increased $.5 million as a result of an increase in operating income of $.8 million partially offset by an increase in income taxes. Excluding the effect of currency translation, South Africa income from continuing operations, net of tax, decreased $.5 million as a result of a decrease in operating income of $.6 million partially offset by lower income taxes of $.1 million. Excluding the effect of currency translation, Canada income from continuing operations, net of tax, increased $.1 million primarily as a result of a $.2 million increase in operating income partially offset by an increase in income taxes. Excluding the effect of currency translation, Poland income from continuing operations, net of tax, decreased $.7 million primarily as a result of a $1 million decrease in operating income partially offset by a decrease in income taxes. Excluding the effect of currency translation, All Other income from continuing operations, net of tax increased $1 million primarily as a result of the $1.3 million increase in operating income partially offset by an increase in income taxes of $.1 million coupled with lower other income.
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