Preformed Line Products Company reported net income of $1.1 million, or $0.21 per diluted share, in the first quarter of 2010 ending 3/31/2010. The company earned $2.7 million, or $0.51 per diluted share, in the same quarter of 2009.
Despite the drop in net income, Preformed Line Products Company reported an increase in revenue on a year over year basis, from $58.7 million in the first quarter of 2009 to $68.9 million in the quarter the just ended.
Management expressed frustration with the fall in net income in view of the strong revenue increase and attributed the difference to an increase in raw material costs, integration expenses associated with a recent acquisition and a weak economy in both the United States and Europe.
Rob Ruhlman, the CEO of Preformed Line Products Company, said, “Increases in our raw material costs and integration expenses related to the acquisition of Dulmison in December 2009 contributed to the decline in our operating profit. The improvement in sales as a result of adding Dulmison was offset by the continuing faltering economy in Europe as well as the ongoing economic challenges in the U.S.”
Preformed Line Products Company is headquartered in Ohio, and has three manufacturing facilities in the United States in Arkansas, New Mexico and North Carolina. The company has sales and customers in more than a dozen countries including Brazil, China and Thailand.