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Mar 31, 2021
Preformed Line Products Q1 2021 Earnings Report
Reported an increase in net sales and net income compared to the same quarter last year.
Key Takeaways
Preformed Line Products reported a strong first quarter with a 14% increase in net sales and a significant rise in net income. All regions contributed to the net sales growth and improved profitability, with PLP USA leading the increase due to growth in communications products and the strength of U.S.-based facilities. Geographic diversification helped to mitigate risks during challenging economic conditions.
Net sales increased by 14% to $117.6 million compared to Q1 2020.
Net income rose to $7.2 million, or $1.45 per diluted share, compared to $3.7 million, or $0.74 per diluted share, in Q1 2020.
All regions reported an increase in net sales and improved profitability year-over-year.
PLP USA's growth was driven by communications product family and U.S. based manufacturing and distribution facilities.
Preformed Line Products
Preformed Line Products
Forward Guidance
The company will continue to focus on the safety and well-being of its employees, customers, and suppliers while providing high-quality products and services. Investments will be made within PLP USA operations to support growth.
Positive Outlook
- Continued focus on safety and well-being of employees, customers, and suppliers.
- Commitment to providing high-quality products and services.
- Planned investments in PLP USA operations to support growth.
- Expansion of capabilities and product offerings in international operations.
- Geographic diversification helps de-risk the business model.
Challenges Ahead
- Uncertainty about the extent to which COVID-19 will impact future operations.
- Potential reductions in revenue in operations relying on government-sponsored infrastructure projects delayed due to COVID-19.
- Uncertainty in business conditions and economy due to COVID-19.
- Potential impact from the strength of the economy and demand for the Company's products.
- Possible effects from competitive and customer price pressure on the Company's products.