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Mar 31, 2022
Preformed Line Products Q1 2022 Earnings Report
Preformed Line Products' Q1 2022 performance saw revenue increase and earnings per share rise, boosted by a life insurance gain but offset by costs from winding down its Russian subsidiary.
Key Takeaways
Preformed Line Products reported a strong start to 2022, with net sales increasing by 18% to $138.2 million and diluted EPS rising by 72% to $2.49. Results were positively impacted by a $4.4 million gain from life insurance death benefits, but negatively affected by a $1.0 million charge related to winding down the company's Russian subsidiary.
Net sales increased by 18% compared to Q1 2021, reaching $138.2 million.
Diluted EPS increased by 72% to $2.49.
The company benefited from strong volume growth, recent acquisitions, and selling price adjustments.
Results were impacted by inflationary pressures, supply chain disruptions, and costs associated with winding down the Russian subsidiary.
Preformed Line Products
Preformed Line Products
Forward Guidance
The company has instituted additional selling price increases. Additional investments are well underway within our PLP USA operations to support this growth both today and into the future. Customer satisfaction remains our primary goal.
Positive Outlook
- Enjoyed strong volume growth
- Incremental sales from newest acquisitions
- Benefitted from selling price adjustments
- Additional investments are well underway within our PLP USA operations to support this growth both today and into the future.
- Customer satisfaction remains our primary goal
Challenges Ahead
- Pace of inflationary increases on our raw material inputs and freight expense
- Additional costs associated with supply chain disruption
- Continue to negatively impact our gross profit percentage and earnings generation
- Reductions in revenue in certain operations that rely more heavily on government-sponsored infrastructure projects that have been delayed due to COVID-19
- Currency translation rates had an unfavorable impact on 2022 first quarter net sales of $2.5 million, or 2%