Posted on May - 02 - 2010
Preformed Line Products Co. reports lower first-quarter profits despite higher sales
Preformed Line Products Co. (Nasdaq: PLPC) has reported lower first-quarter earnings despite higher sales because of costs that brought down profits in the latest first quarter.
The maker of cable and anchoring hardware for utilities and telecom companies said its net income in the quarter fell 58%, to $1.1 million, or 21 cents a share, from $2.7 million, or 50 cents a share, in the first quarter of 2009.
Sales at Preformed Line rose 17%, to $68.9 million from $58.7 million.
“Our overall results for the current quarter were disappointing given the 17% increase in sales,” Rob Ruhlman, Preformed Line chairman and CEO, said in a statement.
Mr. Ruhlman said increases in raw material costs and integration expenses related to the company’s acquisition last December of the Dulmison business of Tyco International Ltd. contributed to the decline in its operating profits.
“The improvement in sales as a result of adding Dulmison was offset by the continuing faltering economy in Europe as well as the ongoing economic challenges in the U.S.,” Mr. Ruhlman said. “If we have an uptick in sales in the second quarter, there should be a corresponding improvement in leveraging our expenses.”
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