Company: PLPC
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0000080035-25-000022
Chunk: 28

Company: PREFORMED LINE PRODUCTS CO
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 1
Chunk 28
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 useful to the readers of our financial statements in the assessment of our performance and operating trends. 

Net sales of $178.1 million increased $31.1 million for the three months ended September 30, 2025 year-over-year and net sales of $496.2 million increased $69.6 million for the nine months ended September 30, 2025 year-over-year, mainly due to an increase in energy and communication sales for the quarter. While our significant domestic manufacturing footprint provides a competitive advantage in the current high tariff environment, raw materials imports, particularly steel and aluminum, continue to be most impacted. Additionally, PLP-USA LIFO inventory valuation costs have accelerated due to tariffs, resulting in charges of $3.8 million and $6.2 million for the three-month and nine-month periods ending September 30, 2025. These amounts exclude cash-tax savings generated from lower pre-tax book income. While we continue to manage trade matters proactively, further tariff increases may give rise to inflationary pressures, which may require further price adjustments to maintain profit margin, and any price increases may have a negative effect on demand.

Our financial statements are subject to fluctuations in the exchange rates of foreign currencies in relation to the U.S. dollar. The fluctuations of foreign currencies during the three and nine months ended September 30, 2025 had a favorable impact on net sales of $1.9 million and an unfavorable impact of $3.0 million, respectively. The fluctuations on foreign currencies had a favorable impact of $0.3 million on net income for the three months ended September 30, 2025 and a de minimis impact on net income for the nine months ended September 30, 2025. The fluctuations of foreign currencies during the three and nine months ended September 30, 2024 had an unfavorable impact on net sales of $0.8 million and $1.1 million, respectively. The fluctuations on foreign currencies during the three and nine months ended September 30, 2024 had an unfavorable impact on net income of $0.1 million and $0.2 million, respectively. On a reportable segment basis, the impact of foreign currency translation on net sales and net income for the three and nine months ended September 30, 2025, was as follows:

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Foreign Currency Translation ImpactThree Months Ended September 30, 2025Nine Months Ended September 30, 2025(Thousands of dollars)Net SalesNet IncomeNet SalesNet IncomeThe