In This Article:
Preformed Line Products Company’s PLPC third-quarter results reflect headwinds from decreased demand in key segments like PLP-USA. Although international regions like EMEA and the Asia-Pacific posted revenue growth, this was insufficient to offset declines in the U.S. market. With a robust liquidity position and proactive cost-control measures, the company is poised to navigate near-term challenges while monitoring the impacts of macroeconomic conditions on demand.
PLPC’s Q3 Results
Preformed Line Products reported third-quarter 2024 basic earnings per share of $1.57, marking a decline of 49% from $3.08 in the third quarter of 2023.
The company’s net sales totaled $146.97 million, an 8% decrease from $160.44 million in the prior-year quarter.
The weak quarterly results reflects the impacts of reduced sales volume, particularly in the U.S. segment, wherein sales in the communications and energy product categories faced challenges.
Preformed Line Products Company Price, Consensus and EPS Surprise
Preformed Line Products Company price-consensus-eps-surprise-chart | Preformed Line Products Company Quote
Preformed Line Products’ Segmental Performance
PLP-USA: Net sales declined 20% year over year to $65.55 million, led by lower demand for communications and energy products. Gross profit decreased 30% year over year due to lower sales volumes and an unfavorable product mix.
The Americas: Sales fell 6% year over year to $19.85 million due to weaker demand for energy products. Gross profit decreased 9%, impacted by lower volumes.
EMEA (Europe, Middle East and Africa): Net sales rose 12% year over year to $32.94 million on increased energy product sales. Gross profit grew 24% on higher sales and a favorable product mix.
The Asia-Pacific: Net sales improved 5% year over year to $28.63 million due to stronger demand for energy products. Gross profit moved up 3%, driven by product mix improvements.
The performances of these regions, mainly the Americas and the Asia-Pacific, were partially offset by an unfavorable currency translation impact of $0.8 million.
PLPC’s Profitability Metrics
Preformed Line Products’ gross profit was $45.78 million for third-quarter 2024, a decline of 15% from $54.14 million in third-quarter 2023. The gross profit margin also narrowed from 33.7% to 31.1%.
Net income attributable to PLPC shareholders was $7.68 million, down 49% from $15.13 million in third-quarter 2023. The decrease reflects lower operating income, slightly offset by lower interest expenses and a reduced tax rate.
Preformed Line Products’ Cost Structure
The cost of products sold decreased 5% to $101.2 million from $106.3 million in third-quarter 2023, consistent with lower overall sales volumes. Despite easing input cost pressures (e.g., for materials like aluminum), PLPC noted that the benefits were not substantial enough to offset the impacts of lower demand in the key product lines.