Business
PREFORMED LINE PRODUCTS ANNOUNCES FOURTH QUARTER AND FULL YEAR 2021 FINANCIAL RESULTS
CLEVELAND, March 3, 2022 /PRNewswire/ -- Preformed Line Products Company (NASDAQ: PLPC) today reported financial results for its fourth quarter and full year
About this update from Preformed Line Products Company
[{"type":"text","content":"CLEVELAND, March 3, 2022 /PRNewswire/ -- Preformed Line Products Company (NASDAQ: PLPC) today reported financial results for its fourth quarter and full year ended December 31, 2021.\n\n \n \n \n \n \n \n\n \nNet sales in the fourth quarter of 2021 were $131.4 million compared to $118.5 million in the fourth quarter of 2020, a 10.9% increase and a new record for fourth quarter shipments. Foreign currency translation reduced fourth quarter 2021 net sales by $0.7 million.\nNet income for the quarter ended December 31, 2021 was $9.0 million, or $1.79 per diluted share, compared to $2.7 million, or $0.53 per diluted share, for the comparable period in 2020. The fourth quarter of 2021 net income benefited from the increased gross profit on incremental sales and the selling price increases announced in 2021 partially offsetting the impact of rising costs on key raw material inputs and transportation expenses. Also benefiting the year-over-year comparison were charges incurred for litigation reserves and loss on sale of assets in 2020 not recurring in 2021 as well as the timing of expense recognition for employee bonus plans.\nNet sales for the full year 2021 were $517.4 million, compared to $466.4 million in 2020. This is the third consecutive year of record net sales and represents a 10.9% increase. Favorable foreign currency translation accounted for $9.3 million of the full year 2021 net sales increase.\nNet income for the year ended December 31, 2021 was $35.7 million, or $7.19 per diluted share, compared to $29.8 million, or $5.98 per diluted share in 2020. Net income for the full year 2021 was negatively impacted by significant increases in raw material prices and transportation expenses. However, the increase in margin on incremental sales as well as the early-stage pricing benefit for announced price increases in 2021 helped offset those inflationary increases allowing us to substantially maintain our year-over-year gross profit comparison.\nOn March 2, 2022, we amended our line of credit agreement with PNC Bank, National Association to increase our facility limit from $65.0 million to $90.0 million, modified our index used to determine the interest rates from LIBOR to the Bloomberg Short Term Bank Yield Index (\"BSBY\") and extended the maturity from June 30, 2024 to March 2, 2026. Substantially all other terms remain the sam...