PREFORMED LINE PRODUCTS ANNOUNCES THIRD QUARTER 2024 FINANCIAL RESULTS
Preformed Line Products reported Q3 2024 financial results with net sales of $147.0 million, down 8% from $160.4 million in Q3 2023. Net income decreased to $7.7 million ($1.54 per diluted share) from $15.1 million ($3.03 per diluted share). For the first nine months of 2024, net sales declined 19% to $426.6 million, with net income of $26.6 million ($5.37 per diluted share) compared to $57.0 million ($11.39 per diluted share) in 2023. The decline is primarily attributed to slowdown in communications end market spending and inventory destocking. Gross profit margin remained stable at 31.2% in Q3 2024.
Preformed Line Products ha riportato i risultati finanziari del Q3 2024 con vendite nette di 147,0 milioni di dollari, in calo dell'8% rispetto ai 160,4 milioni di dollari del Q3 2023. Il reddito netto è diminuito a 7,7 milioni di dollari (1,54 dollari per azione diluita) rispetto ai 15,1 milioni di dollari (3,03 dollari per azione diluita). Nei primi nove mesi del 2024, le vendite nette sono diminuite del 19% a 426,6 milioni di dollari, con un reddito netto di 26,6 milioni di dollari (5,37 dollari per azione diluita) rispetto ai 57,0 milioni di dollari (11,39 dollari per azione diluita) del 2023. Il calo è principalmente attribuito a una diminuzione della spesa nel mercato delle comunicazioni e a uno smaltimento delle scorte. Il margine di profitto lordo è rimasto stabile al 31,2% nel Q3 2024.
Preformed Line Products informó sobre los resultados financieros del Q3 2024 con ventas netas de 147,0 millones de dólares, una disminución del 8% respecto a los 160,4 millones de dólares del Q3 2023. La utilidad neta disminuyó a 7,7 millones de dólares (1,54 dólares por acción diluida) desde los 15,1 millones de dólares (3,03 dólares por acción diluida). Para los primeros nueve meses de 2024, las ventas netas cayeron un 19% a 426,6 millones de dólares, con una utilidad neta de 26,6 millones de dólares (5,37 dólares por acción diluida) en comparación con los 57,0 millones de dólares (11,39 dólares por acción diluida) en 2023. La disminución se atribuye principalmente a una desaceleración en el gasto del mercado final de comunicaciones y al desabastecimiento de inventarios. El margen de utilidad bruta se mantuvo estable en el 31,2% en el Q3 2024.
Preformed Line Products는 Q3 2024 재무 결과를 보고하며, 순매출이 1억 4,700만 달러로, Q3 2023의 1억 6,040만 달러에서 8% 감소했다고 발표했습니다. 순이익은 770만 달러(희석 주당 1.54달러)로 감소하였고, 2023년의 1,510만 달러(희석 주당 3.03달러)에서 줄어들었습니다. 2024년 첫 9개월 동안 순매출은 19% 감소하여 4억 2,660만 달러에 이르렀고, 순이익은 2,660만 달러(희석 주당 5.37달러)로, 2023년의 5,700만 달러(희석 주당 11.39달러)와 비교되었습니다. 이 감소는 주로 통신 최종 시장의 지출 감소와 재고 조정에 기인합니다. 총 이익률은 Q3 2024에서 31.2%로 안정적으로 유지되었습니다.
Preformed Line Products a annoncé les résultats financiers du Q3 2024, avec des ventes nettes s'élevant à 147,0 millions de dollars, en baisse de 8% par rapport à 160,4 millions de dollars au Q3 2023. Le revenu net a diminué à 7,7 millions de dollars (1,54 dollar par action diluée) contre 15,1 millions de dollars (3,03 dollars par action diluée) l'année précédente. Pour les neuf premiers mois de 2024, les ventes nettes ont chuté de 19% à 426,6 millions de dollars, tandis que le revenu net était de 26,6 millions de dollars (5,37 dollars par action diluée), comparé à 57,0 millions de dollars (11,39 dollars par action diluée) en 2023. Cette baisse est principalement attribuée à un ralentissement des dépenses dans le marché final des communications et à un déstockage des inventaires. La marge bénéficiaire brute est restée stable à 31,2% au Q3 2024.
Preformed Line Products hat die finanziellen Ergebnisse des Q3 2024 veröffentlicht, mit einem Nettoumsatz von 147,0 Millionen US-Dollar, was einem Rückgang von 8% gegenüber 160,4 Millionen US-Dollar im Q3 2023 entspricht. Der Nettogewinn sank auf 7,7 Millionen US-Dollar (1,54 US-Dollar pro verwässerter Aktie) von 15,1 Millionen US-Dollar (3,03 US-Dollar pro verwässerter Aktie). In den ersten neun Monaten 2024 fiel der Nettoumsatz um 19% auf 426,6 Millionen US-Dollar, während der Nettogewinn bei 26,6 Millionen US-Dollar (5,37 US-Dollar pro verwässerter Aktie) im Vergleich zu 57,0 Millionen US-Dollar (11,39 US-Dollar pro verwässerter Aktie) im Jahr 2023 lag. Der Rückgang wird hauptsächlich auf eine Verlangsamung der Ausgaben im Endmarkt für Kommunikation und auf die Lagerreduzierung zurückgeführt. Die Bruttomarge blieb im Q3 2024 stabil bei 31,2%.
- Gross profit margin remained stable at 31.2% in Q3 2024
- Cost reduction activities implemented in 2023 showing positive effects
- Order backlog showing signs of increase
- Strong liquidity position maintained
- Q3 2024 net sales decreased 8% to $147.0 million
- Q3 2024 net income dropped 49% to $7.7 million
- YTD net sales declined 19% to $426.6 million
- YTD net income decreased 53% to $26.6 million
- Continued slowdown in communications end market spending
Insights
The Q3 2024 results reveal significant challenges for PLPC, with net sales declining 8% to
The primary concern lies in the communications end market weakness, driven by higher borrowing costs and inventory destocking. However, there are some positive indicators:
- Stable gross margin at
31.2% - Effective cost containment measures
- Increasing order backlog suggesting potential recovery
- Strong liquidity position
Net sales in the third quarter of 2024 were
Net income for the quarter ended September 30, 2024, was
Net sales decreased
Net income for the nine months ended September 30, 2024 was
Rob Ruhlman, Executive Chairman, said, "The decline in net sales continues, albeit at a slower pace, primarily related to the softness in the communications end market, caused primarily by a reduction in deployment due to higher borrowing costs and continued inventory destocking to re-align customer inventory levels with current manufacturing lead times. The slower pace of the net sales decline and an increase in order backlog are indicators that we may be nearing the final stages of inventory destocking. Our gross margin percentage has been consistent throughout 2024 aided by our cost reduction activities implemented in 2023. We remain optimistic about the prospects of the markets that we serve and will continue our investment in new product development, streamlining our manufacturing operations and expanding our customer service portfolio. These actions, along with our continued strong liquidity, will allow us to take advantage of favorable market conditions when they return. Our current focus is unchanged: provide our customers with the high-quality products and timely service they have come to expect from PLP."
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, labor disruptions, military conflict, political instability, exchange rates and lingering effects of COVID-19, 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, 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 COMPANY | |||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(Thousands of dollars, except per share data) | |||||||
Net sales | $ 146,973 | $ 160,438 | $ 426,597 | $ 524,076 | |||
Cost of products sold | 101,195 | 106,301 | 292,415 | 337,328 | |||
GROSS PROFIT | 45,778 | 54,137 | 134,182 | 186,748 | |||
Costs and expenses | |||||||
Selling | 12,318 | 12,732 | 36,146 | 38,133 | |||
General and administrative | 16,414 | 17,794 | 48,272 | 54,624 | |||
Research and engineering | 5,545 | 5,840 | 16,334 | 16,793 | |||
Other operating expense, net | 1,109 | (2,307) | 186 | (10) | |||
35,386 | 34,059 | 100,938 | 109,540 | ||||
OPERATING INCOME | 10,392 | 20,078 | 33,244 | 77,208 | |||
Other (expense) income | |||||||
Interest income | 538 | 478 | 1,856 | 1,201 | |||
Interest expense | (564) | (998) | (1,840) | (3,198) | |||
Other income, net | 64 | 18 | 189 | 165 | |||
38 | (502) | 205 | (1,832) | ||||
INCOME BEFORE INCOME TAXES | 10,430 | 19,576 | 33,449 | 75,376 | |||
Income tax expense | 2,734 | 4,431 | 6,783 | 18,348 | |||
NET INCOME | $ 7,696 | $ 15,145 | $ 26,666 | $ 57,028 | |||
Net income attributable to noncontrolling interests | (16) | (15) | (24) | (28) | |||
NET INCOME ATTRIBUTABLE TO PREFORMED LINE | $ 7,680 | $ 15,130 | $ 26,642 | $ 57,000 | |||
AVERAGE NUMBER OF SHARES OF COMMON STOCK OUTSTANDING: | |||||||
Basic | 4,904 | 4,906 | 4,911 | 4,929 | |||
Diluted | 4,977 | 4,990 | 4,959 | 5,006 | |||
EARNINGS PER SHARE OF COMMON STOCK | |||||||
Basic | $ 1.57 | $ 3.08 | $ 5.42 | $ 11.56 | |||
Diluted | $ 1.54 | $ 3.03 | $ 5.37 | $ 11.39 | |||
Cash dividends declared per share | $ 0.20 | $ 0.20 | $ 0.60 | $ 0.60 |
PREFORMED LINE PRODUCTS COMPANY | ||||
September 30, 2024 | December 31, 2023 | |||
(Thousands of dollars, except share and per share data) | (Unaudited) | |||
ASSETS | ||||
Cash, cash equivalents and restricted cash | $ 47,498 | $ 53,607 | ||
Accounts receivable, net | 110,888 | 106,892 | ||
Inventories, net | 142,726 | 148,814 | ||
Prepaid expenses | 13,053 | 8,246 | ||
Other current assets | 6,479 | 7,256 | ||
TOTAL CURRENT ASSETS | 320,644 | 324,815 | ||
Property, plant and equipment, net | 201,194 | 207,892 | ||
Goodwill | 28,672 | 29,497 | ||
Other intangible assets, net | 10,983 | 12,981 | ||
Deferred income taxes | 9,502 | 7,109 | ||
Other assets | 20,958 | 20,857 | ||
TOTAL ASSETS | $ 591,953 | $ 603,151 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Trade accounts payable | $ 42,426 | $ 37,788 | ||
Notes payable to banks | 8,006 | 6,968 | ||
Current portion of long-term debt | 2,618 | 6,486 | ||
Accrued compensation and other benefits | 29,499 | 28,018 | ||
Accrued expenses and other liabilities | 31,450 | 32,057 | ||
TOTAL CURRENT LIABILITIES | 113,999 | 111,317 | ||
Long-term debt, less current portion | 24,582 | 48,796 | ||
Other noncurrent liabilities and deferred income taxes | 24,385 | 26,882 | ||
SHAREHOLDERS' EQUITY | ||||
Common shares – | 13,715 | 13,607 | ||
Common shares issued to rabbi trust, 222,741 and 243,118 shares at September 30, | (9,557) | (10,183) | ||
Deferred compensation liability | 9,557 | 10,183 | ||
Paid-in capital | 63,108 | 60,958 | ||
Retained earnings | 543,743 | 520,154 | ||
Treasury shares, at cost, 1,959,512 and 1,894,419 shares at September 30, 2024 | (126,503) | (118,249) | ||
Accumulated other comprehensive loss | (65,092) | (60,306) | ||
TOTAL PREFORMED LINE PRODUCTS COMPANY | 428,971 | 416,164 | ||
Noncontrolling interest | 16 | (8) | ||
TOTAL SHAREHOLDERS' EQUITY | 428,987 | 416,156 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 591,953 | $ 603,151 | ||
See notes to consolidated financial statements (unaudited). |
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SOURCE Preformed Line Products
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