CLEVELAND, May 3, 2023
/PRNewswire/ -- Preformed Line Products Company (NASDAQ:
PLPC) today reported financial results for its first quarter
of 2023.
Q1 2023 Highlights:
- Fourth consecutive record of quarterly net sales; increased 32%
from comparable 2022 period
- Record quarterly net income of $21.4
million
- Diluted EPS of $4.28, an increase
of 72% from Q1 2022, a new quarterly record
Net sales in the first quarter of 2023 were $181.8 million compared to $138.2 million in the first quarter of 2022, a
32% increase and a new record for quarterly shipments. Foreign
currency translation reduced first quarter 2023 net sales by
$4.6 million.
Net income for the quarter ended March
31, 2023 was $21.4 million, or
$4.28 per diluted share, compared to
$12.3 million, or $2.49 per diluted share, for the comparable
period in 2022. The first quarter of 2023 net income continued to
benefit from increased gross profit from incremental sales, selling
price increases and incremental sales from recent acquisitions.
Gross profit as a percentage of net sales was 36.5% for the first
quarter of 2023, an increase of 610 basis points versus the same
quarter in 2022.
Rob Ruhlman, Chairman and Chief
Executive Officer, said, "We had strong positive momentum
entering 2023 which allowed us to recognize record quarterly net
sales and earnings, above those set just last quarter. Our ability
to continue to perform at a very high level comes from years of
planning and execution by our global leadership team. While led by
the strong financial performance of the PLP-USA operations, the record results were made
possible by all regions posting improved net sales and pre-tax
earnings versus Q1 2022. We are also very pleased with the
financial performance of the four acquisitions that we have
completed in the last five quarters. Our increased capacity,
primarily in the USA, has allowed
us to reduce both backlog and order lead times during Q1 2023. We
will continue to expeditiously work down our backlog and lead times
in order to provide our customers with the high-quality
products and timely service they have come to expect from our
dedicated workforce."
FORWARD-LOOKING STATEMENTS
This news release contains "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934 regarding the
Company, including those statements regarding the Company's and
management's beliefs and expectations concerning the Company's
future performance or anticipated financial results, among others.
Except for historical information, the matters discussed in this
release are forward-looking statements that involve risks and
uncertainties which may cause results to differ materially from
those set forth in those statements. Among other things, factors
that could cause actual results to differ materially from those
expressed in such forward-looking statements include the
uncertainty in global business conditions and the economy due to
factors such as inflation, rising interest rates, labor
disruptions, military conflict, political instability, exchange
rates and lingering effects of COVID-19, the strength of demand and
availability of funding for the Company's products and the mix of
products sold, the relative degree of competitive and customer
price pressure on the Company's products, the cost, availability
and quality of raw materials required for the manufacture of
products, opportunities for business growth through acquisitions
and the ability to successfully integrate any acquired businesses,
changes in regulations and tax rates, security breaches, litigation
and claims and the Company's ability to continue to develop
proprietary technology and maintain high-quality products and
customer service to meet or exceed new industry performance
standards and individual customer expectations, and other factors
described under the headings "Forward-Looking Statements" and "Risk
Factors" in the Company's 2022 Annual Report on Form 10-K filed
with the SEC on March 3, 2023 and
subsequent filings with the SEC. The Annual Report on Form 10-K and
the Company's other filings with the SEC can be found on the SEC's
website at http://www.sec.gov. The Company assumes no obligation to
update or supplement forward-looking statements that become untrue
because of subsequent events.
ABOUT PLP
PLP protects the world's most critical connections by creating
stronger and more reliable networks. The company's
precision-engineered solutions are trusted by energy and
communications providers worldwide to perform better and last
longer. With locations in 20 countries, PLP works as a united
global corporation, delivering high-quality products and
unparalleled service to customers around the world.
PREFORMED LINE
PRODUCTS COMPANY
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CONSOLIDATED BALANCE
SHEETS
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March 31,
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December 31,
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(Thousands of
dollars, except share and per share data)
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2023
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2022
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ASSETS
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Cash, cash equivalents
and restricted cash
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$
31,791
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$
37,239
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Accounts receivable,
less allowances of $6,095 ($5,600 in 2022)
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141,114
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125,261
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Inventories,
net
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149,784
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147,458
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Prepaid
expenses
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8,299
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13,283
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Other current
assets
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8,179
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4,929
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TOTAL CURRENT
ASSETS
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339,167
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328,170
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Property, plant and
equipment, net
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196,151
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175,011
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Goodwill
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28,687
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28,004
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Other intangible
assets, net
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13,909
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14,082
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Deferred income
taxes
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6,147
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5,320
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Other assets
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18,187
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17,892
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TOTAL
ASSETS
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$
602,248
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$
568,479
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LIABILITIES AND
SHAREHOLDERS' EQUITY
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Trade accounts
payable
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$
56,273
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$
46,839
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Notes payable to
banks
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13,842
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18,098
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Current portion of
long-term debt
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3,026
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3,018
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Accrued compensation
and other benefits
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22,337
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24,356
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Accrued expenses and
other liabilities
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29,739
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23,024
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TOTAL CURRENT
LIABILITIES
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125,217
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115,335
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Long-term debt, less
current portion
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68,374
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68,420
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Other noncurrent
liabilities and deferred income taxes
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27,943
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26,100
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SHAREHOLDERS'
EQUITY
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Shareholders'
equity:
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Common shares – $2 par
value, 15,000,000 shares authorized, 4,947,924 and
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4,917,020 issued and outstanding, as of March 31, 2023 and December
31, 2022, respectively
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13,491
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13,351
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Common shares issued to
rabbi trust, 241,151 and 245,386 shares at
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March 31, 2023 and December
31, 2022, respectively
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(10,076)
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(10,261)
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Deferred compensation
liability
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10,076
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10,261
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Paid-in
capital
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54,956
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53,646
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Retained
earnings
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481,278
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460,930
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Treasury shares, at
cost, 1,800,474 and 1,758,901 shares at
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March 31, 2023 and December
31, 2022, respectively
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(103,043)
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(99,303)
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Accumulated other
comprehensive loss
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(65,976)
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(69,987)
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TOTAL PREFORMED LINE
PRODUCTS COMPANY SHAREHOLDERS' EQUITY
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380,706
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358,637
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Noncontrolling
interest
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8
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(13)
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TOTAL SHAREHOLDERS'
EQUITY
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380,714
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358,624
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TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
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$
602,248
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$
568,479
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PREFORMED LINE
PRODUCTS COMPANY
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STATEMENTS OF
CONSOLIDATED INCOME
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Three Months Ended
March 31,
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(Thousands of
dollars, except earnings per share data)
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2023
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2022
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Net sales
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$
181,824
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$
138,223
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Cost of products
sold
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115,541
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96,272
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GROSS
PROFIT
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66,283
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41,951
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Costs and
expenses
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Selling
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12,388
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10,661
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General and
administrative
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18,609
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16,309
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Research and
engineering
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5,193
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4,774
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Other operating
expense, net
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1,112
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|
756
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37,302
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32,500
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OPERATING
INCOME
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28,981
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9,451
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Other (expense)
income
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Interest
income
|
|
304
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113
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Interest
expense
|
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(1,066)
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(526)
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Other income,
net
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40
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5,103
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(722)
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4,690
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INCOME BEFORE INCOME
TAXES
|
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28,259
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|
14,141
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Income tax
expense
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6,840
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1,840
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NET
INCOME
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|
$
21,419
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$
12,301
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Net income attributable
to noncontrolling interests
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(21)
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(16)
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NET INCOME
ATTRIBUTABLE TO PREFORMED
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LINE PRODUCTS
COMPANY SHAREHOLDERS
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$
21,398
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$
12,285
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AVERAGE NUMBER OF
SHARES OF COMMON STOCK
|
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OUTSTANDING:
|
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Basic
|
|
4,937
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|
4,928
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Diluted
|
|
4,997
|
|
4,943
|
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|
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EARNINGS PER SHARE
OF COMMON STOCK ATTRIBUTABLE TO
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PREFORMED LINE
PRODUCTS COMPANY SHAREHOLDERS:
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Basic
|
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$
4.33
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$
2.49
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Diluted
|
|
$
4.28
|
|
$
2.49
|
|
|
|
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Cash dividends declared
per share
|
|
$
0.20
|
|
$
0.20
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SOURCE Preformed Line Products