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Preformed Line Products Announces Improved Financial Results
Preformed Line Products Company (Nasdaq: PLPC - News) reported financial results for the fourth quarter and the full year ended December 31, 2006.
Net income for the quarter ended December 31, 2006 increased to $2,032,000, or $.38 per diluted share, compared to $883,000, or $.15 per diluted share, for the comparable period in 2005. Net sales in the fourth quarter 2006 were $51,765,000, an 11% increase from last year's $46,726,000.
Net income for the full year ended December 31, 2006 increased to $12,060,000, or $2.13 per diluted share, compared to the prior year's $11,986,000, or $2.07 per diluted share. Net sales increased 5% to $216,937,000 for the full year 2006 compared to $205,804,000 in 2005.
Rob Ruhlman, Chairman and Chief Executive Officer, said, "Our international operations had a record year for both sales and income. International sales of $105 million were 17% higher than the previous year. Currency had a $2.8 million favorable impact on sales. Our 2006 domestic sales were 3% lower than 2005 as a result of a weak telecommunications market. However, domestic sales recovered in the fourth quarter and were 9% stronger than the fourth quarter of 2005 in our core energy and telecommunication markets. This trend is continuing into 2007 as we anticipated. I am particularly pleased with our fourth quarter net income more than doubling that of 2005. One of our biggest challenges for 2007 will be improving operating efficiencies in our domestic operations to make up for continuing increases in raw material costs."
On Thursday, February 15, 2007 the Board of Directors authorized the Company to repurchase up to 200,000 common shares, $2 par value per share, or approximately 3.7% of the Company's outstanding common shares. Under the repurchase program, which does not have a stated expiration date, the Company has authority to repurchase common shares through the open market, block purchases, or in negotiated private transactions on an ongoing basis. The repurchases will be subject to availability of common shares, general market conditions, the trading price of the common shares, alternative uses for capital, and the Company's financial condition and performance.
The Board of Directors also declared a regular quarterly dividend in the amount of $.20 per share on the Company's common shares, payable April 20, 2007 to shareholders of record at the close of business on April 2, 2007.
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, 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 15, 2006. 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.
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