Preformed Line Products Company (PLP) reported a decline in financial performance for the third quarter and the first nine months of 2024 compared to the same periods in 2023. For the three months ended September 30, 2024, net sales totaled $146.973 million, down from $160.438 million in the prior year, marking a decrease of approximately 8%. For the nine months ended September 30, 2024, net sales were $426.597 million, a significant drop from $524.076 million, reflecting a 19% decline year-over-year. The primary driver of this decrease was continued inventory destocking among PLP-USA communications market customers and distributors.
Gross profit for the third quarter of 2024 was $45.778 million, down from $54.137 million in 2023, while for the nine-month period, gross profit decreased to $134.182 million from $186.748 million. This decline in profitability was attributed to lower sales volumes and an unfavorable product mix, particularly in the PLP-USA segment, which saw a 30% decrease in gross profit.
Operating income also fell sharply, with the third quarter reporting $10.392 million compared to $20.078 million in 2023, and for the nine months, operating income decreased to $33.244 million from $77.208 million. Net income for the third quarter was $7.696 million, down from $15.145 million, while for the nine months, net income dropped to $26.666 million from $57.028 million, representing a 53% decline.
The company’s earnings per share (EPS) reflected this downturn, with basic EPS for the third quarter at $1.57, down from $3.08 in 2023, and for the nine months, EPS decreased to $5.42 from $11.56.
In terms of strategic developments, PLP completed the acquisition of Pilot Plastics on February 1, 2023, for approximately $13.8 million, enhancing its injection molding capabilities. Additionally, the company settled a lawsuit with Altalink, L.P. for $3.2 million, which was aimed at eliminating litigation uncertainties.
As of September 30, 2024, PLP reported total assets of $591.953 million, down from $603.151 million at the end of 2023. Total current liabilities increased slightly to $113.999 million from $111.317 million. The company maintained a strong liquidity position, with cash, cash equivalents, and restricted cash totaling $47.498 million.
Overall, PLP's financial results for the third quarter and the first nine months of 2024 indicate significant challenges, primarily driven by market conditions and inventory management issues, alongside strategic acquisitions aimed at bolstering its operational capabilities.