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Mayfield Village, Ohio, November 8, 2018 – Preformed Line Products Company (NASDAQ: PLPC) today reported financial results for its third quarter and first nine months of 2018.
Net income for the quarter ended September 30, 2018 was $9.1 million, or $1.76 per diluted share, compared to $6.3 million, or $1.23 per diluted share, for the comparable period in 2017.
Net sales in the third quarter of 2018 increased 9% to $108.4 million compared to $99.2 million in the third quarter of 2017.
Net income for the nine months ended September 30, 2018 was $21.3 million, or $4.19 per diluted share, compared to $12.0 million, or $2.33 per diluted share, for the comparable period in 2017.
Net sales increased 12% to $315.5 million for the first nine months of 2018 compared to $281.3 million in the first nine months of 2017.
The Company’s results for the third quarter benefitted from an adjustment to its 2017 estimated tax expense that it previously recorded associated with the U.S. Tax Cuts and Jobs Act enacted last year. The Company also recorded a one-time tax savings due to a pension contribution made during the third quarter. Both of these events will contribute to a lower effective tax rate going forward, thereby reducing the Company’s tax liability for the current year.
Currency translation rates negatively impacted net sales by $4.3 million for the quarter ended September 30, 2018 and $1.2 million for the first nine months of 2018. Currency had a minimal positive impact on net income of $.3 million for each of the periods.
Rob Ruhlman, Chairman and Chief Executive Officer, said, “An all-time record for domestic operation sales in a quarter was further supported by double-digit sales growth in our international operations for the third consecutive quarter. We continue to perform consistently as changing economic conditions, including an uncertain tariff environment, remain challenging. We believe our commitment to continuous product and process improvement is key to our ongoing success.”
