Preformed Line Products(PLPC) - 2024 Q3 - Quarterly Report

Financial Performance - Net sales for Q3 2024 were $147.0 million, a decrease of$13.5 million, or 8%, compared to Q3 2023[56] - Gross profit for Q3 2024 was $45.8 million, a decrease of$8.4 million, or 15%, compared to Q3 2023[62] - Operating income for Q3 2024 was $10.4 million, a decrease of$9.7 million, or 48%, compared to Q3 2023[59] - Net income attributable to Preformed Line Products Company shareholders for Q3 2024 was $7.7 million, a decrease of$7.5 million, or 49%, compared to Q3 2023[59] - Net income for the three months ended September 30, 2024, was $7.7 million, down from$15.1 million in 2023, representing a decrease of $7.4 million, or 48$426.6 million, a decrease of $97.5 million, or 19$524.1 million in 2023[68] - Gross profit for the nine months ended September 30, 2024, was $134.2 million, a decrease of$52.6 million, or 28%, compared to $186.7 million in 2023[71] - Consolidated operating income for the nine months ended September 30, 2024, was$33.2 million, a decrease of $43.9 million, or 57$77.2 million in 2023[68] - Consolidated net income for the nine months ended September 30, 2024, was $26.6 million, a decrease of$30.4 million, or 53%, compared to $57.0 million in 2023[73] Segment Performance - PLP-USA segment net sales decreased by$16.2 million, or 20%, primarily due to lower volumes in communications and energy product sales[61] - EMEA segment net sales increased by $3.6 million, or 12$1.2 million, or 5%, driven by higher volumes in energy product sales[61] - The Americas net sales decreased by $5.5 million, or 8$3.1 million, a decrease of $6.0 million, or 66$9.1 million in 2023[65] Costs and Expenses - Costs and expenses for Q3 2024 were $35.4 million, an increase of$1.3 million compared to Q3 2023[59] - For the three months ended September 30, 2024, total costs and expenses were $35.4 million, an increase of$1.3 million, or 4%, compared to 2023[64] - EMEA's costs and expenses increased by $1.4 million to$7.2 million for the three months ended September 30, 2024, primarily due to increased selling and administrative costs[64] - Asia-Pacific's costs and expenses increased by $2.5 million to$5.8 million, primarily due to a one-time gain of $2.5 million on the sale of capital assets in the third quarter of 2023[64] - PLP-USA costs and expenses decreased by$7.1 million, or 12%, year-over-year, primarily due to lower selling costs and cost containment efforts[72] - Asia-Pacific segment costs increased by $1.2 million, or 8$1.7 million, primarily due to a one-time legal settlement in Q3 2023[72] - EMEA costs decreased by $0.7 million, primarily due to lower personnel costs and bad debt expenses[72] Tax and Income - The effective tax rate for the three months ended September 30, 2024, was 26$6.8 million, with an effective tax rate of 20%, down from 24% in 2023[72] Cash Flow and Debt - Net cash provided by operating activities decreased by $45.0 million to$43.4 million for the nine months ended September 30, 2024, compared to $88.4 million in the prior year[76] - Total debt at September 30, 2024, was$35.2 million, with unused availability under the credit facility at $77.2 million[75] - Cash, cash equivalents, and restricted cash totaled$47.5 million at the end of the nine months ended September 30, 2024[75] Market and Operational Risks - The Company operates globally with manufacturing facilities and offices, utilizing both fixed and floating rate debt for financing[79] - The Company is exposed to business risks from non-U.S. activities, including political and economic uncertainty, import/export limitations, and market risks from interest rate and foreign currency fluctuations[79] - The Company believes that its international operations' political and economic risks are mitigated by geographic diversity[79] - There have been no material changes in the Company's exposure to market risk since December 31, 2023[79]