1. PLPC's Q4 net sales rose 15% to $167.1 million. 2. Full year net sales declined 11% to $593.7 million. 3. Q4 net income increased to $10.5 million, up 67% from 2023. 4. International sales growth offset U.S. market weakness. 5. Management remains positive on future growth and product development.
Despite a yearly decline, the strong Q4 growth and improved profitability signal recovery potential.
The article presents positive developments that are likely to influence investor sentiment and stock price.
Immediate market reactions are likely given the recent positive earnings and increased sales growth.
Preformed Line Products Company (NASDAQ: PLPC) today reported financial results for its fourth quarter of 2024 and full year ended December 31, 2024.
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...
A presentation on fourth quarter and full-year results will also be available on PLP's website at www.plp.com/investor-relations.
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...
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.
| (Thousands of dollars, except share and per share data) | December 31, 2024 | December 31, 2023 |
|---|---|---|
| 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 |
| (Thousands of dollars, except per share data) | 2024 | 2023 |
|---|---|---|
| Net sales | $ 167,117 | $ 145,603 |
| Cost of products sold | $ 111,488 | $ 97,503 |
| GROSS PROFIT | $ 55,629 | $ 48,100 |
| Costs and expenses | ||
| Selling | $ 12,576 | $ 12,945 |
| General and administrative | $ 19,205 | $ 20,019 |
| Research and engineering | $ 5,589 | $ 5,688 |
| Other operating expense, net | $ 746 | $ 2,502 |
| Total Costs and Expenses | $ 38,116 | $ 41,154 |
| OPERATING INCOME | $ 17,513 | $ 6,946 |
| Other income (expense) | ||
| Interest income | $ 717 | $ 610 |
| Interest expense | $(381) | $(707) |
| Other (expense) income, net | $(528) | $ 119 |
| INCOME BEFORE INCOME TAXES | $ 17,321 | $ 6,968 |
| Income tax expense | $ 6,876 | $ 659 |
| NET INCOME | $ 10,445 | $ 6,309 |
| Net loss (income) attributable to noncontrolling interests | $ 7 | $ 23 |
| NET INCOME ATTRIBUTABLE TO PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS | $ 10,452 | $ 6,332 |
| Measure | 2024 | 2023 |
|---|---|---|
| Basic | $ 2.13 | $ 1.30 |
| Diluted | $ 2.13 | $ 1.29 |
| Cash dividends declared per share | $ 0.20 | $ 0.20 |
SOURCE Preformed Line Products