Exhibit 99.1
Preformed Line Products Announces Financial Results for the
2003 Second Quarter and First Six Months
CLEVELAND, July 29 /PRNewswire-FirstCall/ -- Preformed Line Products
Company (Nasdaq: PLPC) today reported financial results for the second quarter
and the first six months of 2003.
Net sales for the quarter ended June 30, 2003 were $39,972,000, a decrease
of 11% from $44,854,000 for the three months ended June 30, 2002. Net income
was $833,000 for the second quarter of 2003 compared to $1,037,000 in the
previous year. Earnings per share for the quarter were $.14 versus $.18 in
2002.
Net sales for the six months ended June 30, 2002 were $75,181,000, a
decrease of 15% from the prior year's $88,862,000. Net income was $1,917,000
compared to $3,038,000 last year. Earnings per share were $.33 for the first
six months of 2003 compared to $.53 in the prior year.
Rob Ruhlman, President and Chief Executive Officer said, "Half of the
sales decrease is a result of closing our data communications business in
Scotland in September last year. The remaining decrease is a result of the
ongoing lack of activity in the domestic market. Neither of these events was
unexpected. We do not anticipate a recovery in the domestic market this year.
However, our international sales of our core products improved over last year
and we are optimistic that this trend will continue. Our balance sheet
remains strong, and we continue to generate strong cash flows."
On Wednesday, June 4, 2003, the Board of Directors declared a regular
quarterly dividend in the amount of 20 cents per share on the Company's common
shares, payable July 29, 2003 to shareholders of record July 1, 2003.
Founded in 1947, 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's world headquarters are in Cleveland, Ohio, and the Company
operates three domestic manufacturing centers located in Rogers, Arkansas,
Albemarle, North Carolina, and Asheville, North Carolina. The Company serves
its worldwide market through international operations in Australia, Brazil,
Canada, China, England, Japan, Mexico, New Zealand, Scotland, South Africa and
Spain.
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 regulation affecting the markets in which the Company's customers
operate, the strength of the economy and demand for the Company's products,
increases in raw material prices, the Company's ability to identify, complete
and integrate acquisitions for profitable growth, and other factors described
under the heading "Forward-Looking Statements" in the Company's Form 10-K
filed with the SEC on March 26, 2003. The 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.
PREFORMED LINE PRODUCTS COMPANY
STATEMENTS OF CONSOLIDATED INCOME
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2003 AND 2002
Thousands of dollars, except per Three months ended Six months ended
share data June 30, June 30,
2003 2002 2003 2002
(Unaudited) (Unaudited)
Net sales $39,972 $44,854 $75,181 $88,862
Cost of products sold 28,743 30,900 52,285 60,366
GROSS PROFIT 11,229 13,954 22,896 28,496
Costs and expenses
Selling 4,415 6,033 8,330 11,315
General and administrative 5,193 5,213 10,264 10,276
Research and engineering 1,288 1,518 2,661 3,134
Other operating expenses
(income) (447) 78 (331) 164
10,449 12,842 20,924 24,889
Royalty income - net 364 447 712 960
OPERATING INCOME 1,144 1,559 2,684 4,567
Other income (expense)
Equity in net income of foreign
joint ventures 17 128 216 203
Interest income 107 62 182 120
Interest expense (130) (187) (238) (375)
Other expense (41) (50) (81) (100)
(47) (47) 79 (152)
INCOME BEFORE INCOME TAXES 1,097 1,512 2,763 4,415
Income taxes 264 475 846 1,377
NET INCOME $833 $1,037 $1,917 $3,038
Net income per share - basic and
diluted $0.14 $0.18 $0.33 $0.53
Cash dividends declared per share $0.20 $0.20 $0.40 $0.40
Average number of shares
outstanding - basic 5,781 5,763 5,776 5,760
Average number of shares
outstanding - diluted 5,781 5,787 5,777 5,785
PREFORMED LINE PRODUCTS COMPANY
CONSOLIDATED BALANCE SHEETS
AS OF JUNE 30, 2003 AND DECEMBER 31, 2002
June 30, December 31,
Thousands of dollars, except share data 2003 2002
(Unaudited)
ASSETS
Cash and cash equivalents $14,002 $11,629
Accounts receivable, less allowance
of $3,513 ($3,770 in 2002) 26,659 24,763
Inventories - net 33,134 33,750
Deferred income taxes - short-term 4,864 5,276
Prepaids and other 4,857 3,104
TOTAL CURRENT ASSETS 83,516 78,522
Property and equipment - net 48,745 48,569
Investments in foreign joint ventures 8,842 8,087
Deferred income taxes - long-term 790 863
Goodwill, patents and other
intangibles - net 5,583 5,596
Other 3,365 3,147
TOTAL ASSETS $150,841 $144,784
LIABILITIES AND SHAREHOLDERS' EQUITY
Notes payable to banks $1,014 $1,246
Trade accounts payable 8,765 7,844
Accrued compensation and amounts
withheld from employees 4,084 3,269
Accrued expenses and other
liabilities 5,290 4,251
Accrued profit-sharing and pension
contributions 3,723 4,176
Dividends payable 1,157 1,155
Income taxes 2,406 337
Current portion of long-term debt 3,809 1,676
TOTAL CURRENT LIABILITIES 30,248 23,954
Long-term debt, less current portion 1,300 5,847
Deferred income taxes - long-term 219 161
Minimum pension liability and other 854 726
SHAREHOLDERS' EQUITY
Common shares - $2 par value,
15,000,000 shares authorized,
5,784,494 and 5,772,710 issued
and outstanding, net of
377,404 and 389,188 treasury
shares at par 11,569 11,545
Paid in capital 82 82
Retained earnings 122,876 123,124
Other comprehensive loss (16,307) (20,655)
TOTAL SHAREHOLDERS' EQUITY 118,220 114,096
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $150,841 $144,784
SOURCE Preformed Line Products Company
-0- 07/29/2003
/CONTACT: Eric R. Graef of Preformed Line Products, +1-440-473-9249/
/Web site: http://www.preformed.com/
(PLPC)
CO: Preformed Line Products Company
ST: Ohio
IN: MAC CPR
SU: ERN