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Preformed Line Products Company News

Preformed Line Products Announces Financial Results for the Quarter Ended March 31, 2008

MAYFIELD VILLAGE, Ohio, May 9 PRNewswire-FirstCall — Preformed Line Products Company (Nasdaq: PLPC) today reported financial results for the first quarter ended March 31, 2008.

Net income for the quarter ended March 31, 2008 was $2,950,000, or $.54 per diluted share, compared to $3,152,000, or $.58 per diluted share, for the comparable period in 2007.

Net sales for the first quarter increased 14% to $64,703,000 compared to $56,531,000 in the first quarter of 2007.

Currency had a favorable impact on sales and net income for the quarter of $3.1 million and $.1 million, respectively.

Rob Ruhlman, Chairman and Chief Executive Officer, said, "I am pleased with the progress in the integration of the two acquisitions completed in 2007. These acquisitions contributed $6.7 million in sales in this year's first quarter. Our volume in the U.S. was down primarily as a result of extraordinary sales in the first quarter of 2007 due to ice storms. I am concerned about the uncertainty surrounding the weak domestic economy and the housing market and the impact this will have on our distribution market. However, we continue to see strong performance in the transmission market as a result of the new products we have introduced in recent years. We continue to monitor the pressure on our margins as a consequence of the rising cost of raw material and are implementing price increases during the second quarter."

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 four domestic manufacturing centers located in Rogers, Arkansas, Albuquerque, New Mexico, Albemarle, North Carolina, and Asheville, North Carolina. The Company serves its worldwide market through international operations in Australia, Brazil, Canada, China, England, Mexico, New Zealand, Poland, 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 April 7, 2008. 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 OPERATIONS (UNAUDITED) In thousands, except per share data Three month periods ended March 31, 2008 2007 Net sales $64,703 $56,531 Cost of products sold 44,433 38,204 GROSS PROFIT 20,270 18,327 Costs and expenses Selling 6,267 5,963 General and administrative 7,760 5,816 Research and engineering 2,234 1,946 Other operating expenses (income) - net (99) 186 Goodwill impairment - 199 16,162 14,110 Royalty income - net 319 381 OPERATING INCOME 4,427 4,598 Other income (expense) Interest income 223 305 Interest expense (139) (165) Other expense (2) (6) 82 134 INCOME BEFORE INCOME TAXES AND MINORITY INTERESTS 4,509 4,732 Income taxes 1,526 1,580 INCOME BEFORE MINORITY INTERESTS 2,983 3,152 Minority interests 33 - NET INCOME $2,950 $3,152 Net income per share - basic $0.55 $0.59 Net income per share - diluted $0.54 $0.58 Cash dividends declared per share $0.20 $0.20 Weighted average number of shares outstanding - basic 5,382 5,360 Weighted average number of shares outstanding - diluted 5,431 5,405 PREFORMED LINE PRODUCTS COMPANY CONSOLIDATED BALANCE SHEETS (UNAUDITED) March 31, December 31, Thousands of dollars, except share data 2008 2007 ASSETS Cash and cash equivalents $21,831 $23,392 Accounts receivable, less allowances of $1,374 ($1,314 in 2007) 42,368 40,482 Inventories - net 51,294 47,050 Deferred income taxes 3,555 3,209 Prepaids and other 4,279 4,542 TOTAL CURRENT ASSETS 123,327 118,675 Property and equipment - net 65,547 62,901 Patents and other intangibles - net 5,734 5,637 Goodwill 4,483 3,928 Deferred income taxes 3,622 4,022 Other assets 8,244 8,703 TOTAL ASSETS $210,957 $203,866 LIABILITIES AND SHAREHOLDERS' EQUITY Notes payable to banks $3,656 $4,076 Current portion of long-term debt 1,602 1,949 Trade accounts payable 20,848 16,083 Accrued compensation and amounts withheld from employees 7,788 7,309 Accrued expenses and other liabilities 11,043 12,932 TOTAL CURRENT LIABILITIES 44,937 42,349 Long-term debt, less current portion 3,217 3,010 Other noncurrent liabilities and deferred income taxes 8,407 7,882 Minority interests 937 904 SHAREHOLDERS' EQUITY Common shares - $2 par value, 15,000,000 shares authorized, 5,379,856 and 5,380,956 outstanding, net of 381,733 and 378,333 treasury shares at par, respectively 10,760 10,762 Paid in capital 2,822 2,720 Retained earnings 142,069 140,339 Accumulated other comprehensive loss (2,192) (4,100) TOTAL SHAREHOLDERS' EQUITY 153,459 149,721 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $210,957 $203,866

SOURCE Preformed Line Products Company

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