Exhibit 99.1
PREFORMED LINE PRODUCTS
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For immediate release Eric R. Graef
July 29, 2004 Preformed Line Products
(440) 473-9249
PREFORMED LINE PRODUCTS ANNOUNCES SIGNIFICANTLY IMPROVED
FINANCIAL RESULTS FOR THE SECOND QUARTER AND FIRST SIX
MONTHS OF 2004 AND A REGULAR QUARTERLY DIVIDEND
Cleveland, Ohio, July 29, 2004 - PREFORMED LINE PRODUCTS COMPANY (NASDAQ: PLPC)
today reported financial results for the second quarter and the first six months
of 2004.
Net income for the quarter ended June 30, 2004 was $2,371,000, or $.41 per
share, representing an increase of 185% over last year's $833,000, or $.14 per
share. Net sales in the second quarter 2004 were $45,884,000, an increase of 15%
from last year's $39,972,000.
Net income for the six months ended June 30, 2004 was $3,735,000, or $.65 per
share, an increase of 95% from the prior year's $1,917,000, or $.33 per share.
Net sales increased 14% to $85,414,000 for the first six months of 2004 compared
to $75,181,000 in 2003.
Rob Ruhlman, President and Chief Executive Officer said, "We experienced a 21%
increase in our domestic sales for the quarter as a result of increased spending
by our energy customers who appear to be working diligently to catch up on
previously deferred projects. We also benefited from certain telecommunication
customers stepping up their fiber to the home programs. Our improvements in the
efficiency of our operations over the past three years softened the impact of
the rising cost of raw materials, particularly steel wire and stainless steel
stampings. We anticipate that the cost of our raw materials will continue to
increase due to high oil prices and excess worldwide demand for steel. We will
continue to work with our customers to make sure that future pricing accurately
reflects the rise in raw material prices as well as our ongoing efforts to
reduce costs while providing the highest quality products and services."
On Tuesday, June 8, 2004, the Board of Directors declared a regular quarterly
dividend in the amount of $.20 per share on the Company's common shares, payable
July 29, 2004 to shareholders of record July 1, 2004.
PAGE 2 / PLP ANNOUNCES SECOND QUARTER RESULTS & QUARTERLY DIVIDEND
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, South Africa, Spain and Thailand.
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 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, 2004. 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 MONTH AND SIX MONTH PERIODS ENDED JUNE 30, 2004 AND 2003
(Unaudited)
Three month periods Six month periods
Thousands, except per share data ended June 30, ended June 30,
------------------------- -------------------------
2004 2003 2004 2003
-------- -------- -------- --------
Net sales $ 45,884 $ 39,972 $ 85,414 $ 75,181
Cost of products sold 30,785 28,743 58,245 52,285
-------- -------- -------- --------
GROSS PROFIT 15,099 11,229 27,169 22,896
Costs and expenses
Selling 4,550 4,415 9,037 8,330
General and administrative 5,272 5,193 9,789 10,264
Research and engineering 1,457 1,288 2,934 2,661
Other operating expenses (income) - net 256 (447) 128 (331)
-------- -------- -------- --------
11,535 10,449 21,888 20,924
Royalty income - net 321 364 747 712
-------- -------- -------- --------
OPERATING INCOME 3,885 1,144 6,028 2,684
Other income (expense)
Equity in net income (loss) of foreign joint ventures (37) 17 21 216
Interest income 116 107 243 182
Interest expense (117) (130) (203) (238)
Other expense (37) (41) (73) (81)
-------- -------- -------- --------
(75) (47) (12) 79
-------- -------- -------- --------
INCOME BEFORE INCOME TAXES 3,810 1,097 6,016 2,763
Income taxes 1,439 264 2,281 846
-------- -------- -------- --------
NET INCOME $ 2,371 $ 833 $ 3,735 $ 1,917
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Net income per share - basic $ 0.41 $ 0.14 $ 0.65 $ 0.33
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Net income per share - diluted $ 0.41 $ 0.14 $ 0.64 $ 0.33
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Cash dividends declared per share $ 0.20 $ 0.20 $ 0.40 $ 0.40
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Average number of shares outstanding - basic 5,715 5,781 5,748 5,777
======== ======== ======== ========
Average number of shares outstanding - diluted 5,764 5,781 5,802 5,778
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PREFORMED LINE PRODUCTS COMPANY
CONSOLIDATED BALANCE SHEETS
AS OF JUNE 30, 2004 AND DECEMBER 31, 2003
(Unaudited)
June 30, December 31,
Thousands of dollars, except share data 2004 2003
--------- ------------
ASSETS
Cash and cash equivalents $ 23,493 $ 28,209
Accounts receivable, less allowance of $2,373 ($2,463 in 2003) 30,819 24,225
Inventories-net 30,763 31,113
Deferred income taxes 3,086 3,740
Prepaids and other 2,874 1,692
--------- ---------
TOTAL CURRENT ASSETS 91,035 88,979
Property and equipment - net 45,679 47,888
Investments in foreign joint venture 3,387 2,826
Deferred income taxes 335 434
Goodwill - net 2,029 1,929
Patents and other intangibles - net 3,434 3,624
Other 2,439 3,290
--------- ---------
TOTAL ASSETS $ 148,338 $ 148,970
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LIABILITIES AND SHAREHOLDERS' EQUITY
Notes payable to banks $ 1,017 $ 1,019
Current portion of long-term debt 1,628 1,884
Trade accounts payable 10,568 7,648
Accrued compensation and amounts withheld from employees 4,646 3,749
Accrued expenses and other liabilities 4,033 4,356
Accrued profit-sharing and pension contributions 2,994 3,850
Dividends payable 1,143 1,163
Income taxes 1,248 1,650
--------- ---------
TOTAL CURRENT LIABILITIES 27,277 25,319
Long-term debt, less current portion 2,087 2,515
Deferred income taxes - long-term 130 97
Minimum pension liability -- 309
SHAREHOLDERS' EQUITY
Common shares - $2 par value, 15,000,000 shares authorized, 5,716,933 and
5,814,269 outstanding, net of 477,404
and 377,404 treasury shares at par, respectively 11,434 11,629
Paid in capital 503 472
Retained earnings 122,088 123,022
Accumulated other comprehensive loss (15,181) (14,393)
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TOTAL SHAREHOLDERS' EQUITY 118,844 120,730
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 148,338 $ 148,970
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