PREFORMED LINE PRODUCTS ANNOUNCES SECOND QUARTER 2024 FINANCIAL RESULTS

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[{"type":"text","content":"CLEVELAND, July 31, 2024 /PRNewswire/ -- Preformed Line Products Company (NASDAQ: PLPC) today reported financial results for its second quarter of 2024.\n\n \n \n \n \n \n \n\n \nNet sales in the second quarter of 2024 were $138.7 million compared to $181.8 million in the second quarter of 2023, a 24% decrease. The decrease in sales is a continuation of the slowdown in spending in the communications end market. Foreign currency translation reduced second quarter 2024 net sales by $1.1 million.\nNet income for the quarter ended June 30, 2024 was $9.4 million, or $1.89 per diluted share, compared to $20.5 million, or $4.08 per diluted share, for the comparable period in 2023. The second quarter of 2024 net income was impacted by decreased gross profit from lower sales levels, similar to our Q1 2024 results, partially offset by lower period expenses, lower interest expense and reduced income tax expense. Gross profit as a percentage of net sales was 31.9% for the second quarter of 2024, a decrease of 460 basis points versus the same quarter in 2023. \nNet sales decreased 23% to $279.6 million for the first six months of 2024 compared to $363.6 million for the first six months of 2023. The year-over-year decline in sales is due primarily to the slowdown in spending and inventory de-stocking within the communications end market. Foreign currency translation rates reduced net sales by $0.3 million for the six months ended June 30, 2024.\nNet income for the six months ended June 30, 2024 was $19.0 million, or $3.83 per diluted share, compared to $41.9 million, or $8.35 per diluted share, for the comparable period in 2023. YTD June 30, 2024 net income was impacted by decreased gross profit resulting from the decrease in sales which was partially offset by lower period expenses, lower interest expense and reduced income tax expense.\nRob Ruhlman, Executive Chairman, said, \"The decline in net sales continues to be primarily related to the softness in the communications end market, caused primarily by a reduction in deployment due to higher borrowing costs, a delay in BEAD stimulus funding and continued inventory de-stocking to re-align customer inventory levels with current manufacturing lead times. Our cost reduction activities implemented in 2023 have helped us maintain solid financial results during this expected temporary slow-down w...

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