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Mar 31, 2024
Preformed Line Products Q1 2024 Earnings Report
Preformed Line Products reported a decrease in net sales and net income for Q1 2024 due to a slowdown in the communications end market.
Key Takeaways
Preformed Line Products' first quarter 2024 net sales decreased by 22% to $140.9 million compared to $181.8 million in the first quarter of 2023. Net income for the quarter was $9.6 million, or $1.94 per diluted share, compared to $21.4 million, or $4.28 per diluted share, for the comparable period in 2023.
Net sales decreased by 22% due to a slowdown in the communications end market.
Net income decreased to $9.6 million, or $1.94 per diluted share.
Gross profit as a percentage of net sales was 31.3%.
Cost reduction activities instituted in mid-2023 led to reduced spending.
Preformed Line Products
Preformed Line Products
Forward Guidance
The company anticipates favorable market conditions to return and is focused on providing high-quality products and timely service.
Positive Outlook
- Continued investment in new product development
- Streamlining manufacturing operations
- Expanding customer service portfolio
- Strong liquidity
- Focus on providing high-quality products and timely service
Challenges Ahead
- Softness in communications end market demand
- Higher borrowing rates
- Delayed BEAD stimulus funding
- Elevated inventory levels
- Overbuying that occurred in 2022 and early 2023