CLEVELAND , March 13, 2025 /PRNewswire/ -- Preformed Line Products Company (NASDAQ: PLPC) today repo...


    
    
    
      
          
		  
          
            
            
            ,  /PRNewswire/ -- Preformed Line Products Company (NASDAQ: PLPC) today reported financial results for its fourth quarter of 2024 and full year ended December 31, 2024.
Q4/Full Year 2024 Highlights:

 Quarterly net sales of $167.1 million, an increase of 15% from Q4 2023 and 14% from Q3 2024
 Diluted EPS of $2.13, an increase of 65% from Q4 2023 and 38% from Q3 2024
 Debt reduction of $33.7 million in 2024 due to strong cash generation

Net sales in the fourth quarter of 2024 were $167.1 million compared to $145.6 million in the fourth quarter of 2023, a 15% increase. The international subsidiaries accounted for the majority of the sales increase primarily due to an increase in energy market sales and to a lesser extent the communications end market. Foreign currency translation reduced fourth quarter 2024 net sales by $3.0 million.
Net income for the quarter ended December 31, 2024, was $10.5 million, or $2.13 per diluted share, compared to $6.3 million, or $1.29 per diluted share, for the comparable period in 2023. The fourth quarter of 2024 net income was impacted by an increase in gross profit from higher sales levels, lower period expenses, and lower interest expense. Gross profit as a percentage of net sales was 33.3% for the fourth quarter of 2024, an increase of 30 basis points versus the same quarter in 2023.
Net sales decreased 11% to $593.7 million for the full year 2024 compared to $669.7 million in 2023. The year-over-year decline in sales is due primarily to the slowdown in spending and inventory de-stocking within the U.S. energy and communications end markets. Foreign currency translation rates reduced net sales by $4.2 million for the year ended December 31, 2024.
Net income for the year ended December 31, 2024 was $37.1 million, or $7.50 per diluted share, compared to $63.3 million, or $12.68 per diluted share, for the comparable period in 2023. YTD December 31, 2024 net income was impacted by decreased gross profit resulting from the decrease in sales, which was partially offset by lower period expenses and lower interest expense.
Rob Ruhlman, Executive Chairman, said, "The increase in fourth quarter sales of 15% versus the fourth quarter of 2023, as well as the sequential increase of 14% from last quarter, indicate we are approaching the end of inventory destocking within our primary end markets. Full year net sales declined 11% versus 2023, primarily due to the softness in the U.S. communications end market, caused by a reduction in customer deployment due to higher borrowing costs, a delay in Broadband Equity, Access, and Deployment ("BEAD") Program stimulus funding and customer inventory de-stocking to re-align inventory levels with current manufacturing lead times. While 2024 was a challenging year, I am encouraged by the contributions made by our international subsidiaries, which mitigated some of the weakness in our U.S. business. Our cost reduction activities along with reduced capital expenditures, reduced acquisition activity and lower borrowing costs in 2024 resulted in strong cash generation enabling debt reduction of $33.7 million. Our strong balance sheet and liquidity allows for continued investment in new product development to satisfy customer requirements, facility modernization and automation for our global manufacturing operations as well as opportunities for continued growth through logical acquisitions. Our current focus is unchanged: provide our customers with the high-quality products and timely service they have come to expect from PLP."
A presentation on fourth quarter and full-year results will also be available on PLP's website at www.plp.com/investor-relations.
FORWARD-LOOKING STATEMENTS
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 uncertainty in global business conditions and the economy due to factors such as inflation, rising interest rates, tariffs, labor disruptions, military conflict, political instability, exchange rates, natural disasters and health epidemics, the strength of demand and availability of funding 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, the Company's continued access to financing, opportunities for business growth through acquisitions and the ability to successfully integrate any acquired businesses, changes in regulations and tax rates, security breaches, litigation and claims 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 2023 Annual Report on Form 10-K filed with the SEC on March 8, 2024 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.
ABOUT PLP
PLP protects the world's most critical connections by creating stronger and more reliable networks. The company's precision-engineered solutions are trusted by energy and communications providers worldwide to perform better and last longer. With locations in 20 countries, PLP works as a united global corporation, delivering high-quality products and unparalleled service to customers around the world.

   
    
     
      PREFORMED LINE PRODUCTS COMPANYCONSOLIDATED BALANCE SHEETS 
     
     
      
     
     
      
      December 31, 2024 
      
      December 31, 2023 
     
     
      (Thousands of dollars, except share and per share data) 
      
      
      
     
     
      ASSETS 
      
      
      
     
     
      Cash, cash equivalents and restricted cash 
      $                         57,244 
      
      $                         53,607 
     
     
      Accounts receivable, net 
      111,402 
      
      106,892 
     
     
      Inventories, net 
      129,913 
      
      148,814 
     
     
      Prepaid expenses 
      11,720 
      
      8,246 
     
     
      Other current assets 
      5,514 
      
      7,256 
     
     
      TOTAL CURRENT ASSETS 
      315,793 
      
      324,815 
     
     
      Property, plant and equipment, net 
      195,086 
      
      207,892 
     
     
      Goodwill 
      26,685 
      
      29,497 
     
     
      Other intangible assets, net 
      9,656 
      
      12,981 
     
     
      Deferred income taxes 
      6,546 
      
      7,109 
     
     
      Other assets 
      20,111 
      
      20,857 
     
     
      TOTAL ASSETS 
      $                       573,877 
      
      $                       603,151 
     
     
      LIABILITIES AND SHAREHOLDERS' EQUITY 
      
      
      
     
     
      Trade accounts payable 
      $                         41,951 
      
      $                         37,788 
     
     
      Notes payable to banks 
      7,782 
      
      6,968 
     
     
      Current portion of long-term debt 
      2,430 
      
      6,486 
     
     
      Accrued compensation and other benefits 
      25,904 
      
      28,018 
     
     
      Accrued expenses and other liabilities 
      30,346 
      
      32,057 
     
     
      TOTAL CURRENT LIABILITIES 
      108,413 
      
      111,317 
     
     
      Long-term debt, less current portion 
      18,357 
      
      48,796 
     
     
      Other noncurrent liabilities and deferred income taxes 
      24,783 
      
      26,882 
     
     
      SHAREHOLDERS' EQUITY 
      
      
      
     
     
      Common shares – $2 par value per share, 15,000,000 shares authorized, 4,913,621 and 4,908,413 issued and outstanding, at December 31, 2024 and December 31, 2023 
      13,752 
      
      13,607 
     
     
      Common shares issued to rabbi trust, 222,887 and 243,118 shares at December 31, 2024 and December 31, 2023, respectively 
      (9,575) 
      
      (10,183) 
     
     
      Deferred compensation liability 
      9,575 
      
      10,183 
     
     
      Paid-in capital 
      65,093 
      
      60,958 
     
     
      Retained earnings 
      553,179 
      
      520,154 
     
     
      Treasury shares, at cost, 1,961,772 and 1,894,419 shares at December 31, 2024 and December 31, 2023, respectively 
      (126,800) 
      
      (118,249) 
     
     
      Accumulated other comprehensive loss 
      (82,909) 
      
      (60,306) 
     
     
      TOTAL PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS' EQUITY 
      422,315 
      
      416,164 
     
     
      Noncontrolling interest 
      9 
      
      (8) 
     
     
      TOTAL SHAREHOLDERS' EQUITY 
      422,324 
      
      416,156 
     
     
      TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 
      $                       573,877 
      
      $                       603,151 
     
    
   
  

   
    
     
      PREFORMED LINE PRODUCTS COMPANYSTATEMENTS OF CONSOLIDATED INCOME 
     
     
      
     
     
      
      Three Months Ended December 31, 
      
      Twelve Months Ended December 31, 
     
     
      
      2024 
      
      2023 
      
      2024 
      
      2023 
     
     
      (Thousands of dollars, except per share data) 
      
      
      
      
      
      
      
     
     
      Net sales 
      $                 167,117 
      
      $                 145,603 
      
      $                 593,714 
      
      $                 669,679 
     
     
      Cost of products sold 
      111,488 
      
      97,503 
      
      403,903 
      
      434,831 
     
     
      GROSS PROFIT 
      55,629 
      
      48,100 
      
      189,811 
      
      234,848 
     
     
      Costs and expenses 
      
      
      
      
      
      
      
     
     
      Selling 
      12,576 
      
      12,945 
      
      48,722 
      
      51,078 
     
     
      General and administrative 
      19,205 
      
      20,019 
      
      67,477 
      
      74,643 
     
     
      Research and engineering 
      5,589 
      
      5,688 
      
      21,923 
      
      22,481 
     
     
      Other operating expense, net 
      746 
      
      2,502 
      
      932 
      
      2,492 
     
     
      
      38,116 
      
      41,154 
      
      139,054 
      
      150,694 
     
     
      OPERATING INCOME 
      17,513 
      
      6,946 
      
      50,757 
      
      84,154 
     
     
      Other income (expense) 
      
      
      
      
      
      
      
     
     
      Interest income 
      717 
      
      610 
      
      2,573 
      
      1,811 
     
     
      Interest expense 
      (381) 
      
      (707) 
      
      (2,221) 
      
      (3,905) 
     
     
      Other (expense) income, net 
      (528) 
      
      119 
      
      (339) 
      
      284 
     
     
      
      (192) 
      
      22 
      
      13 
      
      (1,810) 
     
     
      INCOME BEFORE INCOME TAXES 
      17,321 
      
      6,968 
      
      50,770 
      
      82,344 
     
     
      Income tax expense 
      6,876 
      
      659 
      
      13,659 
      
      19,007 
     
     
      NET INCOME 
      $                   10,445 
      
      $                     6,309 
      
      $                   37,111 
      
      $                   63,337 
     
     
      Net loss (income) attributable to noncontrolling interests 
      7 
      
      23 
      
      (17) 
      
      (5) 
     
     
      NET INCOME ATTRIBUTABLE TOPREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS 
      $                   10,452 
      
      $                     6,332 
      
      $                   37,094 
      
      $                   63,332 
     
     
      AVERAGE NUMBER OF SHARES OF COMMON STOCK OUTSTANDING: 
      
      
      
      
      
      
      
     
     
      Basic 
      4,897 
      
      4,864 
      
      4,908 
      
      4,920 
     
     
      Diluted 
      4,917 
      
      4,902 
      
      4,947 
      
      4,997 
     
     
      EARNINGS PER SHARE OF COMMON STOCK ATTRIBUTABLE TO PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS: 
      
      
      
      
      
      
      
     
     
      Basic 
      $                       2.13 
      
      $                       1.30 
      
      $                       7.56 
      
      $                     12.87 
     
     
      Diluted 
      $                       2.13 
      
      $                       1.29 
      
      $                       7.50 
      
      $                     12.68 
     
     
      
      
      
      
      
      
      
      
     
     
      Cash dividends declared per share 
      $                       0.20 
      
      $                       0.20 
      
      $                       0.80 
      
      $                       0.80 
     
    
   
  
SOURCE Preformed Line Products

          
        
      
        
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PLPC

PREFORMED LINE PRODUCTS ANNOUNCES FOURTH QUARTER 2024 FINANCIAL RESULTS

Q4 2024 net sales increased 15% year-over-year to $167.1 million.
Diluted EPS rose to $2.13, a 65% increase from Q4 2023.
Despite quarterly gains, full-year net sales declined 11% due to market weaknesses.
Debt reduced by $33.7 million, boosting cash flow and financial health.
Global operations supported sales despite U.S. market challenges in 2024.

PREFORMED LINE PRODUCTS ANNOUNCES FOURTH QUARTER 2024 FINANCIAL RESULTS

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