Company: PLPC
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001628280-25-021769
Chunk: 1

Company: PREFORMED LINE PRODUCTS CO
Filing Date: 2025-05-02
Form: 10-Q
Item: Part I, Item 2
Chunk 1
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 the financial results and performance of their entire segment for which they are responsible. The business components within each segment are managed to maximize the results of the entire operating segment and the Company rather than the results of any individual business component of the segment.

We evaluate segment performance and allocate resources based on several factors primarily based on gross sales and income before income taxes.

PREFACE

The following discussion describes our results of operations for the three months ended March 31, 2025 and 2024. Our consolidated financial statements are prepared in conformity with United States ("U.S.") generally accepted accounting principles ("GAAP"). Our discussions of the financial results include non-GAAP measures (e.g., foreign currency impact) to provide additional information concerning our financial results and provide information that we believe is useful to the readers of our financial statements in the assessment of our performance and operating trends. 

Net sales of $148.5 million increased $7.6 million for the three months ended March 31, 2025 year-over-year, mainly due to an increase in energy and communication sales for the quarter. While inflationary pressures have subsided, recently enacted tariffs or other trade matters may give rise to further inflationary pressures, which may require further price adjustments to maintain profit margin, and any price increases may have a negative effect on demand. While our significant domestic manufacturing footprint provides a competitive advantage in the current high tariff environment, raw materials imports, particularly steel and aluminum, will be most impacted.

Our financial statements are subject to fluctuations in the exchange rates of foreign currencies in relation to the U.S. dollar. PLPC's foreign currency exchange gains or (losses) were primarily related to translating into U.S. dollars its foreign currency denominated loans, trade receivables and payables from its foreign subsidiaries at the March 31, 2025 exchange rates. The fluctuations of foreign currencies during the three months ended March 31, 2025 and March 31, 2024 had an unfavorable impact on net sales of $4.4 million and favorable impact of $0.7 million, respectively. The effect of currency translation had an unfavorable impact of $0.2 million and a de minimis impact on net income during the three months ended March 31, 2025 and 2024, respectively. On a reportable segment basis, the impact of foreign currency translation on net sales and net income for the three months ended March 31, 2025, was as follows:

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Foreign Currency Translation ImpactNet Sales