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Jun 30, 2021
Preformed Line Products Q2 2021 Earnings Report
Net sales increased but net income decreased due to rising costs.
Key Takeaways
Preformed Line Products reported a 13.1% increase in net sales for Q2 2021, reaching $133.0 million compared to $117.6 million in Q2 2020. However, net income decreased to $8.9 million, or $1.80 per diluted share, from $10.5 million, or $2.11 per diluted share, in the same quarter of the previous year.
Net sales increased by 13.1% compared to Q2 2020, reaching $133.0 million.
Currency translation rates had a favorable impact of $6.2 million on net sales.
Net income decreased to $8.9 million, or $1.80 per diluted share, compared to $10.5 million, or $2.11 per diluted share, in Q2 2020.
Increased raw material prices and transportation costs, along with losses on foreign currency transactions, negatively impacted net income.
Preformed Line Products
Preformed Line Products
Forward Guidance
While raw material and transportation cost inflation have negatively affected our earnings, the announced price increase will soon begin to mitigate its impact. That said, continued cost inflation in these areas through the second half of the year may off-set these gains and require further price adjustments going forward.
Positive Outlook
- Announced price increase will soon begin to mitigate impact.
- Geographic diversification continues to de-risk our business model.
- Focus on the safety and well-being of our employees.
- Continuing to provide the high-quality products and services our customers expect.
Challenges Ahead
- Raw material and transportation cost inflation have negatively affected our earnings.
- Continued cost inflation in these areas through the second half of the year may off-set these gains.
- Require further price adjustments going forward.
- Asia-Pacific region continues to be negatively impacted by the deferral of infrastructure projects due to COVID-19.