##### Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 WASHINGTON, D.C. 20549
 FORM 10-Q
 QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended September 30, 2010
 Commission file number: 0-31164
 Preformed Line Products Company
  Ohio
    
    34-0676895(State or Other Jurisdiction of Incorporation or Organization)
    
    (I.R.S. Employer Identification No.)660 Beta DriveMayfield Village, Ohio
    
    44143(Address of Principal Executive Office)
    
    (Zip Code)
 (Registrants telephone number, including area code)
 Yes þ No o
 Yes o No o
  Large accelerated filer o
    
    Accelerated filer þ
    
    Non-accelerated filer o
    
    Smaller reporting company o(Do not check if a smaller reporting company)
 Yes o No þ




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##### 



Table of Contents
 PagePart I  Financial InformationItem 1. Financial Statements
    
    
    3Item 2. Managements Discussion and Analysis of Financial Condition and Results
of Operations
    
    
    16Item 3. Quantitative and Qualitative Disclosures About Market Risk
    
    
    27Item 4. Controls and Procedures
    
    
    27Part II  Other InformationItem 1. Legal Proceedings
    
    
    28Item 1A. Risk Factors
    
    
    28Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    28Item 3. Defaults Upon Senior Securities
    
    
    29Item 4. (Removed and Reserved)
    
    
    29Item 5. Other Information
    
    
    29Item 6. Exhibits
    
    
    29SIGNATURES
    
    
    32Exhibit 2.1Exhibit 31.1Exhibit 31.2Exhibit 32.1Exhibit 32.2
   2




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##### Table of Contents



PART I  FINANCIAL INFORMATION
 
 ITEM 1. FINANCIAL STATEMENTS
 PREFORMED LINE PRODUCTS COMPANY
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
 September 30
    
    
    December 31Thousands of dollars, except share and per share data
    
    2010
    
    
    2009ASSETSCash and cash equivalents
    
    $
    22,337
    
    
    $
    24,097Accounts receivable, less allowances of $1,280 ($995 in 2009)
    
    
    63,437
    
    
    
    49,245Inventories  net
    
    
    67,869
    
    
    
    56,036Deferred income taxes
    
    
    3,557
    
    
    
    3,256Prepaids
    
    
    3,477
    
    
    
    3,214Prepaid taxes
    
    
    3,927
    
    
    
    1,049Other current assets
    
    
    1,490
    
    
    
    2,062TOTAL CURRENT ASSETS
    
    
    166,094
    
    
    
    138,959Property and equipment  net
    
    
    73,228
    
    
    
    67,766Patents and other intangibles  net
    
    
    12,848
    
    
    
    8,087Goodwill
    
    
    12,056
    
    
    
    6,925Deferred income taxes
    
    
    5,661
    
    
    
    4,358Other assets
    
    
    9,118
    
    
    
    9,277TOTAL ASSETS
    
    $
    279,005
    
    
    $
    235,372LIABILITIES AND SHAREHOLDERS EQUITYNotes payable to banks
    
    $
    831
    
    
    $
    3,181Current portion of long-term debt
    
    
    1,253
    
    
    
    1,330Trade accounts payable
    
    
    24,684
    
    
    
    18,764Accrued compensation and amounts withheld from employees
    
    
    12,910
    
    
    
    8,345Accrued expenses and other liabilities
    
    
    10,275
    
    
    
    8,375Accrued profit-sharing and other benefits
    
    
    3,947
    
    
    
    3,890Dividends payable
    
    
    1,085
    
    
    
    1,076Income taxes payable and deferred income taxes
    
    
    3,949
    
    
    
    1,379TOTAL CURRENT LIABILITIES
    
    
    58,934
    
    
    
    46,340Long-term debt, less current portion
    
    
    14,456
    
    
    
    3,099Unfunded pension obligation
    
    
    9,464
    
    
    
    8,678Income taxes payable, noncurrent
    
    
    1,672
    
    
    
    1,898Deferred income taxes
    
    
    2,748
    
    
    
    1,515Other noncurrent liabilities
    
    
    3,061
    
    
    
    3,021SHAREHOLDERS EQUITYPLPC Shareholders equity:Common stock  $2 par value per share, 15,000,000
shares authorized, 5,220,847 and 5,248,298
issued and outstanding, net of 587,286 and 551,059 treasury shares at par, respectively
    
    
    10,442
    
    
    
    10,497Paid in capital
    
    
    7,774
    
    
    
    5,885Retained earnings
    
    
    179,140
    
    
    
    165,953Accumulated other comprehensive loss
    
    
    (8,051
    )
    
    
    (11,369
    )TOTAL PLPC SHAREHOLDERS EQUITY
    
    
    189,305
    
    
    
    170,966Noncontrolling interest
    
    
    (635
    )
    
    
    (145
    )TOTAL SHAREHOLDERS EQUITY
    
    
    188,670
    
    
    
    170,821TOTAL LIABILITIES AND SHAREHOLDERS EQUITY
    
    $
    279,005
    
    
    $
    235,372
 See notes to consolidated financial statements (unaudited).
  3




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PREFORMED LINE PRODUCTS COMPANY
STATEMENTS OF CONSOLIDATED INCOME
(UNAUDITED)
 Three month periods ended September 30
    
    

Nine month periods ended September 302010
    
    
    2009
    
    
    2010
    
    
    2009(Thousands, except per share data)Net sales
    
    $
    93,942
    
    
    $
    69,132
    
    
    $
    244,987
    
    
    $
    187,394Cost of products sold
    
    
    62,271
    
    
    
    44,518
    
    
    
    165,836
    
    
    
    124,352GROSS PROFIT
    
    
    31,671
    
    
    
    24,614
    
    
    
    79,151
    
    
    
    63,042Costs and expensesSelling
    
    
    7,678
    
    
    
    5,750
    
    
    
    21,218
    
    
    
    16,640General and administrative
    
    
    9,856
    
    
    
    8,609
    
    
    
    29,000
    
    
    
    23,032Research and engineering
    
    
    2,915
    
    
    
    2,411
    
    
    
    8,474
    
    
    
    6,631Other operating expense (income)
    
    
    (1,735
    )
    
    
    (337
    )
    
    
    (745
    )
    
    
    (359
    )18,714
    
    
    
    16,433
    
    
    
    57,947
    
    
    
    45,944OPERATING INCOME
    
    
    12,957
    
    
    
    8,181
    
    
    
    21,204
    
    
    
    17,098Other income (expense)Interest income
    
    
    84
    
    
    
    95
    
    
    
    261
    
    
    
    307Interest expense
    
    
    (162
    )
    
    
    (153
    )
    
    
    (458
    )
    
    
    (369
    )Other income
    
    
    1,005
    
    
    
    326
    
    
    
    1,765
    
    
    
    983927
    
    
    
    268
    
    
    
    1,568
    
    
    
    921INCOME BEFORE INCOME TAXES
    
    
    13,884
    
    
    
    8,449
    
    
    
    22,772
    
    
    
    18,019Income taxes
    
    
    4,002
    
    
    
    2,190
    
    
    
    5,760
    
    
    
    5,501NET INCOME
    
    
    9,882
    
    
    
    6,259
    
    
    
    17,012
    
    
    
    12,518Net income (loss) attributable to noncontrolling interest, net of tax
    
    
    3
    
    
    
    (61
    )
    
    
    (95
    )
    
    
    (108
    )NET INCOME ATTRIBUTABLE TO PLPC
    
    $
    9,879
    
    
    $
    6,320
    
    
    $
    17,107
    
    
    $
    12,626BASIC EARNINGS PER SHARENet income attributable to PLPC common shareholders
    
    $
    1.89
    
    
    $
    1.21
    
    
    $
    3.26
    
    
    $
    2.41DILUTED EARNINGS PER SHARENet income attributable to PLPC common shareholders
    
    $
    1.83
    
    
    $
    1.19
    
    
    $
    3.17
    
    
    $
    2.38Cash dividends declared per share
    
    $
    0.20
    
    
    $
    0.20
    
    
    $
    0.60
    
    
    $
    0.60Weighted-average number of shares outstanding  basic
    
    
    5,238
    
    
    
    5,235
    
    
    
    5,248
    
    
    
    5,231Weighted-average number of shares outstanding  diluted
    
    
    5,390
    
    
    
    5,316
    
    
    
    5,396
    
    
    
    5,309
 See notes to consolidated financial statements (unaudited).
  4




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PREFORMED LINE PRODUCTS COMPANY
STATEMENTS OF CONSOLIDATED CASH FLOWS
(UNAUDITED)
 Nine month periods ended September 302010
    
    
    2009(Thousands of dollars)OPERATING ACTIVITIESNet income
    
    $
    17,012
    
    
    $
    12,518Adjustments to reconcile net income to net cash provided by operations:Depreciation and amortization
    
    
    6,483
    
    
    
    5,162Provision for accounts receivable allowances
    
    
    568
    
    
    
    410Provision for inventory reserves
    
    
    905
    
    
    
    1,316Deferred income taxes
    
    
    (66
    )
    
    
    1,683Share-based compensation expense
    
    
    2,161
    
    
    
    1,425Excess tax benefits from share-based awards
    
    
    
    
    
    
    (75
    )Net investment in life insurance
    
    
    (38
    )
    
    
    (361
    )Other  net
    
    
    (410
    )
    
    
    15Changes in operating assets and liabilities:Accounts receivable
    
    
    (12,305
    )
    
    
    (7,171
    )Inventories
    
    
    (5,333
    )
    
    
    4,268Trade accounts payables and accrued liabilities
    
    
    10,000
    
    
    
    3,629Income taxes payable
    
    
    (171
    )
    
    
    (140
    )Other  net
    
    
    (1,271
    )
    
    
    (618
    )NET CASH PROVIDED BY OPERATING ACTIVITIES
    
    
    17,535
    
    
    
    22,061INVESTING ACTIVITIESCapital expenditures
    
    
    (9,088
    )
    
    
    (6,699
    )Business acquisitions, net of cash acquired
    
    
    (14,343
    )
    
    
    (433
    )Proceeds from the sale of discontinued operations
    
    
    
    
    
    
    750Proceeds from the sale of property and equipment
    
    
    661
    
    
    
    168NET CASH USED IN INVESTING ACTIVITIES
    
    
    (22,770
    )
    
    
    (6,214
    )FINANCING ACTIVITIESIncrease in notes payable to banks
    
    
    10,200
    
    
    
    140Proceeds from the issuance of long-term debt
    
    
    172
    
    
    
    1,174Payments of long-term debt
    
    
    (2,324
    )
    
    
    (375
    )Dividends paid
    
    
    (3,259
    )
    
    
    (3,198
    )Excess tax benefits from share-based awards
    
    
    
    
    
    
    75Proceeds from issuance of common shares
    
    
    89
    
    
    
    191Purchase of common shares for treasury
    
    
    (1,081
    )
    
    
    (165
    )NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES
    
    
    3,797
    
    
    
    (2,158
    )Effects of exchange rate changes on cash and cash equivalents
    
    
    (322
    )
    
    
    1,962Net increase (decrease) in cash and cash equivalents
    
    
    (1,760
    )
    
    
    15,651Cash and cash equivalents at beginning of year
    
    
    24,097
    
    
    
    19,869CASH AND CASH EQUIVALENTS AT END OF PERIOD
    
    $
    22,337
    
    
    $
    35,520
 See notes to consolidated financial statements (unaudited).
  5




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PREFORMED LINE PRODUCTS COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
 In thousands, except share and per share data, unless specifically noted
      Inventories  net
 Inventories
 September 30
    
    
    December 312010
    
    
    2009Finished products
    
    $
    34,626
    
    
    $
    26,161Work-in-process
    
    
    4,810
    
    
    
    3,473Raw materials
    
    
    37,418
    
    
    
    34,78876,854
    
    
    
    64,422Excess of current cost over LIFO cost
    
    
    (5,330
    )
    
    
    (4,463
    )Noncurrent portion of inventory
    
    
    (3,655
    )
    
    
    (3,923
    )$
    67,869
    
    
    $
    56,036
   6




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##### Table of Contents



Property and equipment  net
  September 30
    
    
    December 312010
    
    
    2009Land and improvements
    
    $
    7,387
    
    
    $
    7,188Buildings and improvements
    
    
    53,949
    
    
    
    51,297Machinery and equipment
    
    
    114,413
    
    
    
    104,179Construction in progress
    
    
    4,649
    
    
    
    6,068180,398
    
    
    
    168,732Less accumulated depreciation
    
    
    107,170
    
    
    
    100,966$
    73,228
    
    
    $
    67,766
 Comprehensive income (loss)
  PLPC
    
    
    Noncontrolling interest
    
    
    TotalThree month period
    
    
    Three month period
    
    
    Three month periodended September 30
    
    
    ended September 30
    
    
    ended September 302010
    
    
    2009
    
    
    2010
    
    
    2009
    
    
    2010
    
    
    2009Net income (loss)
    
    $
    9,879
    
    
    $
    6,320
    
    
    $
    3
    
    
    $
    (61
    )
    
    $
    9,882
    
    
    $
    6,259Other comprehensive income:Foreign currency translation adjustments
    
    
    7,496
    
    
    
    4,773
    
    
    
    (77
    )
    
    
    (2
    )
    
    
    7,419
    
    
    
    4,771Recognized net actuarial loss, net of tax
    
    
    44
    
    
    
    99
    
    
    
    
    
    
    
    
    
    
    
    44
    
    
    
    99Total other comprehensive income
    
    
    7,540
    
    
    
    4,872
    
    
    
    (77
    )
    
    
    (2
    )
    
    
    7,463
    
    
    
    4,870Comprehensive income (loss)
    
    $
    17,419
    
    
    $
    11,192
    
    
    $
    (74
    )
    
    $
    (63
    )
    
    $
    17,345
    
    
    $
    11,129
 PLPC
    
    
    Noncontrolling interest
    
    
    TotalNine month period
    
    
    Nine month period
    
    
    Nine month periodended September 30
    
    
    ended September 30
    
    
    ended September 302010
    
    
    2009
    
    
    2010
    
    
    2009
    
    
    2010
    
    
    2009Net income (loss)
    
    $
    17,107
    
    
    $
    12,626
    
    
    $
    (95
    )
    
    $
    (108
    )
    
    $
    17,012
    
    
    $
    12,518Other comprehensive income:Foreign currency translation adjustments
    
    
    3,186
    
    
    
    10,696
    
    
    
    (52
    )
    
    
    4
    
    
    
    3,134
    
    
    
    10,700Recognized net actuarial loss, net of tax
    
    
    132
    
    
    
    266
    
    
    
    
    
    
    
    
    
    
    
    132
    
    
    
    266Total other comprehensive income
    
    
    3,318
    
    
    
    10,962
    
    
    
    (52
    )
    
    
    4
    
    
    
    3,266
    
    
    
    10,966Comprehensive income (loss)
    
    $
    20,425
    
    
    $
    23,588
    
    
    $
    (147
    )
    
    $
    (104
    )
    
    $
    20,278
    
    
    $
    23,484
 Legal proceedings
   7




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Three month period ended September 30
    
    
    Nine month period ended September 302010
    
    
    2009
    
    
    2010
    
    
    2009Service cost
    
    $
    203
    
    
    $
    250
    
    
    $
    610
    
    
    $
    681Interest cost
    
    
    298
    
    
    
    312
    
    
    
    896
    
    
    
    896Expected return on plan assets
    
    
    (240
    )
    
    
    (203
    )
    
    
    (720
    )
    
    
    (569
    )Recognized net actuarial loss
    
    
    70
    
    
    
    158
    
    
    
    210
    
    
    
    422Net periodic benefit cost
    
    $
    331
    
    
    $
    517
    
    
    $
    996
    
    
    $
    1,430
     For the three month period ended September 30
    
    
    For the nine month period ended September 302010
    
    
    2009
    
    
    2010
    
    
    2009NumeratorAmount attributable to PLPC shareholdersNet income attributable to PLPC
    
    $
    9,879
    
    
    $
    6,320
    
    
    $
    17,107
    
    
    $
    12,626DenominatorDetermination of sharesWeighted average common shares outstanding
    
    
    5,238
    
    
    
    5,235
    
    
    
    5,248
    
    
    
    5,231Dilutive effect  share-based awards
    
    
    152
    
    
    
    81
    
    
    
    148
    
    
    
    78Diluted weighted average common shares outstanding
    
    
    5,390
    
    
    
    5,316
    
    
    
    5,396
    
    
    
    5,309Earnings per common share attributable to PLPC shareholdersBasic
    
    $
    1.89
    
    
    $
    1.21
    
    
    $
    3.26
    
    
    $
    2.41Diluted
    
    $
    1.83
    
    
    $
    1.19
    
    
    $
    3.17
    
    
    $
    2.38
   8




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September 30, 2010
    
    
    December 31, 2009Gross Carrying
    
    
    Accumulated
    
    
    Gross Carrying
    
    
    AccumulatedAmount
    
    
    Amortization
    
    
    Amount
    
    
    AmortizationFinite-lived intangible assetsPatents
    
    $
    4,828
    
    
    $
    (3,447
    )
    
    $
    4,827
    
    
    $
    (3,213
    )Land use rights
    
    
    1,363
    
    
    
    (73
    )
    
    
    1,365
    
    
    
    (55
    )Tradename
    
    
    937
    
    
    
    (107
    )
    
    
    311
    
    
    
    Customer backlog
    
    
    480
    
    
    
    (251
    )
    
    
    
    
    
    
    Technology
    
    
    1,712
    
    
    
    (15
    )
    
    
    
    
    
    
    Customer relationships
    
    
    8,309
    
    
    
    (888
    )
    
    
    5,372
    
    
    
    (520
    )$
    17,629
    
    
    $
    (4,781
    )
    
    $
    11,875
    
    
    $
    (3,788
    )Indefinite-lived intangible assetsGoodwill
    
    $
    12,056
    
    
    
    
    
    
    $
    6,925
    Australia
    
    
    South Africa
    
    
    Poland
    
    
    All Other
    
    
    TotalBalance at January 1, 2010
    
    $
    2,243
    
    
    $
    52
    
    
    $
    1,161
    
    
    $
    3,469
    
    
    $
    6,925Additions
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,843
    
    
    
    4,843Currency translation
    
    
    193
    
    
    
    3
    
    
    
    (14
    )
    
    
    106
    
    
    
    288Balance at September 30, 2010
    
    $
    2,436
    
    
    $
    55
    
    
    $
    1,147
    
    
    $
    8,418
    
    
    $
    12,056
  The 1999 Stock Option Plan
   9




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WeightedWeighted
    
    
    AverageAverage
    
    
    Remaining
    
    
    AggregateNumber
    
    
    Exercise Price
    
    
    Contractual
    
    
    Intrinsicof Shares
    
    
    per Share
    
    
    Term (Years)
    
    
    ValueOutstanding at January 1, 2010
    
    
    85,502
    
    
    $
    33.29Granted
    
    
    
    
    
    
    Exercised
    
    
    (4,696
    )
    
    $
    15.13Forfeited
    
    
    
    
    
    
    Outstanding (vested and expected
to vest) at September 30, 2010
    
    
    80,806
    
    
    $
    34.34
    
    
    
    5.5
    
    
    $
    402Exercisable at September 30, 2010
    
    
    69,056
    
    
    $
    32.94
    
    
    
    4.9
    
    
    $
    402
   Long Term Incentive Plan of 2008
  Restricted Share Awards
    10




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##### Table of Contents



Restricted Share AwardsPerformance
    
    
    
    
    
    
    Total
    
    
    Weighted Averageand Service
    
    
    Service
    
    
    Restricted
    
    
    Grant-DateRequired
    
    
    Required
    
    
    Awards
    
    
    Fair ValueNonvested as of January 1, 2010
    
    
    115,346
    
    
    
    12,475
    
    
    
    127,821
    
    
    $
    38.28Granted
    
    
    66,973
    
    
    
    7,303
    
    
    
    74,276
    
    
    
    35.75Vested
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Forfeited
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Nonvested as of September 30, 2010
    
    
    182,319
    
    
    
    19,778
    
    
    
    202,097
    
    
    $
    37.35
     Share Option Awards
     11




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##### Table of Contents



September 30, 2010
    
    
    December 31, 2009Fair Value
    
    
    Carrying Value
    
    
    Fair Value
    
    
    Carrying ValueLong-term debt and related current maturities
    
    $
    15,329
    
    
    $
    15,709
    
    
    $
    4,617
    
    
    $
    4,429
     12




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13




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Three month period ended September 30
    
    
    Nine month period ended September 302010
    
    
    2009
    
    
    2010
    
    
    2009Net salesPLP-USA
    
    $
    31,656
    
    
    $
    27,007
    
    
    $
    88,803
    
    
    $
    81,706Australia
    
    
    13,659
    
    
    
    7,207
    
    
    
    37,837
    
    
    
    19,149Brazil
    
    
    10,942
    
    
    
    9,132
    
    
    
    27,206
    
    
    
    20,014South Africa
    
    
    3,107
    
    
    
    3,284
    
    
    
    8,887
    
    
    
    7,431Canada
    
    
    3,282
    
    
    
    2,885
    
    
    
    8,896
    
    
    
    8,440Poland
    
    
    3,975
    
    
    
    3,053
    
    
    
    11,378
    
    
    
    8,748All Other
    
    
    27,321
    
    
    
    16,564
    
    
    
    61,980
    
    
    
    41,906Total net sales
    
    $
    93,942
    
    
    $
    69,132
    
    
    $
    244,987
    
    
    $
    187,394Intersegment salesPLP-USA
    
    $
    2,605
    
    
    $
    1,504
    
    
    $
    5,932
    
    
    $
    4,579Australia
    
    
    49
    
    
    
    19
    
    
    
    257
    
    
    
    53Brazil
    
    
    508
    
    
    
    804
    
    
    
    1,590
    
    
    
    1,774South Africa
    
    
    43
    
    
    
    191
    
    
    
    273
    
    
    
    395Canada
    
    
    187
    
    
    
    97
    
    
    
    581
    
    
    
    213Poland
    
    
    160
    
    
    
    182
    
    
    
    471
    
    
    
    926All Other
    
    
    6,749
    
    
    
    2,824
    
    
    
    17,858
    
    
    
    8,054Total intersegment sales
    
    $
    10,301
    
    
    $
    5,621
    
    
    $
    26,962
    
    
    $
    15,994Income taxesPLP-USA
    
    $
    1,800
    
    
    $
    589
    
    
    $
    1,332
    
    
    $
    2,728Australia
    
    
    334
    
    
    
    56
    
    
    
    931
    
    
    
    105Brazil
    
    
    383
    
    
    
    477
    
    
    
    308
    
    
    
    566South Africa
    
    
    302
    
    
    
    215
    
    
    
    740
    
    
    
    451Canada
    
    
    299
    
    
    
    238
    
    
    
    669
    
    
    
    660Poland
    
    
    51
    
    
    
    62
    
    
    
    200
    
    
    
    200All Other
    
    
    833
    
    
    
    553
    
    
    
    1,580
    
    
    
    791Total income taxes
    
    $
    4,002
    
    
    $
    2,190
    
    
    $
    5,760
    
    
    $
    5,501Net incomePLP-USA
    
    $
    2,961
    
    
    $
    2,557
    
    
    $
    3,766
    
    
    $
    4,807Australia
    
    
    933
    
    
    
    136
    
    
    
    1,951
    
    
    
    248Brazil
    
    
    662
    
    
    
    764
    
    
    
    1,829
    
    
    
    909South Africa
    
    
    399
    
    
    
    153
    
    
    
    1,524
    
    
    
    764Canada
    
    
    672
    
    
    
    526
    
    
    
    1,497
    
    
    
    1,464Poland
    
    
    173
    
    
    
    183
    
    
    
    729
    
    
    
    731All Other
    
    
    4,082
    
    
    
    1,940
    
    
    
    5,716
    
    
    
    3,595Total net income
    
    
    9,882
    
    
    
    6,259
    
    
    
    17,012
    
    
    
    12,518Income (loss) attributable to noncontrolling interest, net of tax
    
    
    3
    
    
    
    (61
    )
    
    
    (95
    )
    
    
    (108
    )Net income attributable to PLPC
    
    $
    9,879
    
    
    $
    6,320
    
    
    $
    17,107
    
    
    $
    12,626
 September 30
    
    
    December 312010
    
    
    2009AssetsPLP-USA
    
    $
    70,153
    
    
    $
    65,266Australia
    
    
    40,398
    
    
    
    31,269Brazil
    
    
    28,601
    
    
    
    25,194South Africa
    
    
    9,023
    
    
    
    7,081Canada
    
    
    10,390
    
    
    
    9,006Poland
    
    
    14,819
    
    
    
    14,777All Other
    
    
    105,247
    
    
    
    82,330278,631
    
    
    
    234,923Corporate assets
    
    
    374
    
    
    
    449Total assets
    
    $
    279,005
    
    
    $
    235,372
  14




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15




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##### Table of Contents



July 31, 2010Cash and cash equivalents
    
    $
    431Tangible and other assets
    
    
    8,764Amortizable intangible assets:Customer relationships
    
    
    2,617Trade name
    
    
    602Technology
    
    
    1,682Backlog
    
    
    471Goodwill
    
    
    4,843Total assets acquired
    
    
    19,410Liabilities assumed
    
    
    (4,659
    )Total
    
    $
    14,751
      
 ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
     16




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17




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Preface
      18




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##### Table of Contents



Three month period ended September 30,Thousands of dollars
    
    2010
    
    
    2009
    
    
    Change
    
    
    % ChangeNet sales
    
    $
    93,942
    
    
    $
    69,132
    
    
    $
    24,810
    
    
    
    36
    %Cost of products sold
    
    
    62,271
    
    
    
    44,518
    
    
    
    17,753
    
    
    
    40
    %Gross profit
    
    
    31,671
    
    
    
    24,614
    
    
    
    7,057
    
    
    
    29
    %Gross profit as percentage of net sales
    
    
    34
    %
    
    
    36
    %Costs and expenses
    
    
    18,714
    
    
    
    16,433
    
    
    
    2,281
    
    
    
    14
    %Costs and expenses as percentage of net sales
    
    
    20
    %
    
    
    24
    %Operating income
    
    
    12,957
    
    
    
    8,181
    
    
    
    4,776
    
    
    
    58
    %Other income (expense)
    
    
    927
    
    
    
    268
    
    
    
    659
    
    
    
    246
    %Income before income taxes
    
    
    13,884
    
    
    
    8,449
    
    
    
    5,435
    
    
    
    64
    %Income before income taxes as percentage of net sales
    
    
    15
    %
    
    
    12
    %Income taxes
    
    
    4,002
    
    
    
    2,190
    
    
    
    1,812
    
    
    
    83
    %Net income
    
    $
    9,882
    
    
    $
    6,259
    
    
    $
    3,623
    
    
    
    58
    %
 Net Sales.
 Three month period ended September 30Change
    
    
    Changedue to
    
    
    excludingcurrency
    
    
    currency
    
    
    %thousands of dollars
    
    2010
    
    
    2009
    
    
    Change
    
    
    translation
    
    
    tranlation
    
    
    changeNet salesPLP-USA
    
    $
    31,656
    
    
    $
    27,007
    
    
    $
    4,649
    
    
    $
    
    
    
    $
    4,649
    
    
    
    17
    %Australia
    
    
    13,659
    
    
    
    7,207
    
    
    
    6,452
    
    
    
    1,060
    
    
    
    5,392
    
    
    
    75Brazil
    
    
    10,942
    
    
    
    9,132
    
    
    
    1,810
    
    
    
    778
    
    
    
    1,032
    
    
    
    11South Africa
    
    
    3,107
    
    
    
    3,284
    
    
    
    (177
    )
    
    
    184
    
    
    
    (361
    )
    
    
    (11
    )Canada
    
    
    3,282
    
    
    
    2,885
    
    
    
    397
    
    
    
    172
    
    
    
    225
    
    
    
    8Poland
    
    
    3,975
    
    
    
    3,053
    
    
    
    922
    
    
    
    (236
    )
    
    
    1,158
    
    
    
    38All Other
    
    
    27,321
    
    
    
    16,564
    
    
    
    10,757
    
    
    
    (279
    )
    
    
    11,036
    
    
    
    67Consolidated
    
    $
    93,942
    
    
    $
    69,132
    
    
    $
    24,810
    
    
    $
    1,679
    
    
    $
    23,131
    
    
    
    33
    %
   19




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Gross profit.
 Three month period ended September 30Change
    
    
    Changedue to
    
    
    excludingcurrency
    
    
    currency
    
    
    %thousands of dollars
    
    2010
    
    
    2009
    
    
    Change
    
    
    translation
    
    
    translation
    
    
    changeGross profitPLP-USA
    
    $
    11,500
    
    
    $
    10,241
    
    
    $
    1,259
    
    
    $
    
    
    
    $
    1,259
    
    
    
    12
    %Australia
    
    
    4,041
    
    
    
    2,236
    
    
    
    1,805
    
    
    
    320
    
    
    
    1,485
    
    
    
    66Brazil
    
    
    3,136
    
    
    
    2,940
    
    
    
    196
    
    
    
    232
    
    
    
    (36
    )
    
    
    (1
    )South Africa
    
    
    1,309
    
    
    
    951
    
    
    
    358
    
    
    
    77
    
    
    
    281
    
    
    
    30Canada
    
    
    1,569
    
    
    
    1,293
    
    
    
    276
    
    
    
    83
    
    
    
    193
    
    
    
    15Poland
    
    
    1,015
    
    
    
    901
    
    
    
    114
    
    
    
    (60
    )
    
    
    174
    
    
    
    19All Other
    
    
    9,101
    
    
    
    6,052
    
    
    
    3,049
    
    
    
    (58
    )
    
    
    3,107
    
    
    
    51Consolidated
    
    $
    31,671
    
    
    $
    24,614
    
    
    $
    7,057
    
    
    $
    594
    
    
    $
    6,463
    
    
    
    26
    %
   20




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Costs and expenses
 Three month period ended September 30Change
    
    
    Changedue to
    
    
    excludingcurrency
    
    
    currency
    
    
    %thousands of dollars
    
    2010
    
    
    2009
    
    
    Change
    
    
    translation
    
    
    translation
    
    
    changeCosts and expensesPLP-USA
    
    $
    9,256
    
    
    $
    8,668
    
    
    $
    588
    
    
    $
    
    
    
    $
    588
    
    
    
    7
    %Australia
    
    
    2,088
    
    
    
    1,743
    
    
    
    345
    
    
    
    21
    
    
    
    324
    
    
    
    19Brazil
    
    
    1,980
    
    
    
    1,594
    
    
    
    386
    
    
    
    131
    
    
    
    255
    
    
    
    16South Africa
    
    
    513
    
    
    
    481
    
    
    
    32
    
    
    
    32
    
    
    
    
    
    
    
    Canada
    
    
    439
    
    
    
    390
    
    
    
    49
    
    
    
    22
    
    
    
    27
    
    
    
    7Poland
    
    
    784
    
    
    
    658
    
    
    
    126
    
    
    
    (46
    )
    
    
    172
    
    
    
    26All Other
    
    
    3,654
    
    
    
    2,899
    
    
    
    755
    
    
    
    (53
    )
    
    
    808
    
    
    
    28Consolidated
    
    $
    18,714
    
    
    $
    16,433
    
    
    $
    2,281
    
    
    $
    107
    
    
    $
    2,174
    
    
    
    13
    %
  Other income.
 Income taxes
  21




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##### Table of Contents



Net income
 Three month period ended September 30Change
    
    
    Changedue to
    
    
    excludingcurrency
    
    
    currency
    
    
    %thousands of dollars
    
    2010
    
    
    2009
    
    
    Change
    
    
    translation
    
    
    translation
    
    
    changeNet incomePLP-USA
    
    $
    2,961
    
    
    $
    2,557
    
    
    $
    404
    
    
    $
    
    
    
    $
    404
    
    
    
    16
    %Australia
    
    
    933
    
    
    
    136
    
    
    
    797
    
    
    
    214
    
    
    
    583
    
    
    
    429Brazil
    
    
    662
    
    
    
    764
    
    
    
    (102
    )
    
    
    68
    
    
    
    (170
    )
    
    
    (22
    )South Africa
    
    
    399
    
    
    
    153
    
    
    
    246
    
    
    
    23
    
    
    
    223
    
    
    
    146Canada
    
    
    672
    
    
    
    526
    
    
    
    146
    
    
    
    35
    
    
    
    111
    
    
    
    21Poland
    
    
    173
    
    
    
    183
    
    
    
    (10
    )
    
    
    (11
    )
    
    
    1
    
    
    
    1All Other
    
    
    4,082
    
    
    
    1,940
    
    
    
    2,142
    
    
    
    22
    
    
    
    2,120
    
    
    
    109Consolidated
    
    $
    9,882
    
    
    $
    6,259
    
    
    $
    3,623
    
    
    $
    351
    
    
    $
    3,272
    
    
    
    52
    %
    Nine month period ended September 30,Thousands of dollars
    
    2010
    
    
    2009
    
    
    Change
    
    
    % ChangeNet sales
    
    $
    244,987
    
    
    $
    187,394
    
    
    $
    57,593
    
    
    
    31
    %Cost of products sold
    
    
    165,836
    
    
    
    124,352
    
    
    
    41,484
    
    
    
    33
    %Gross profit
    
    
    79,151
    
    
    
    63,042
    
    
    
    16,109
    
    
    
    26
    %Gross profit as percentage of net sales
    
    
    32
    %
    
    
    34
    %Costs and expenses
    
    
    57,947
    
    
    
    45,944
    
    
    
    12,003
    
    
    
    26
    %Costs and expenses as percentage of net sales
    
    
    24
    %
    
    
    25
    %Operating income
    
    
    21,204
    
    
    
    17,098
    
    
    
    4,106
    
    
    
    24
    %Other income (expense)
    
    
    1,568
    
    
    
    921
    
    
    
    647
    
    
    
    70
    %Income before income taxes
    
    
    22,772
    
    
    
    18,019
    
    
    
    4,753
    
    
    
    26
    %Income before income taxes as percentage of net sales
    
    
    9
    %
    
    
    10
    %Income taxes
    
    
    5,760
    
    
    
    5,501
    
    
    
    259
    
    
    
    5
    %Net income
    
    $
    17,012
    
    
    $
    12,518
    
    
    $
    4,494
    
    
    
    36
    %
  22




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##### Table of Contents



Net Sales
 Nine month period ended September 30Change
    
    
    Changedue to
    
    
    excludingcurrency
    
    
    currency
    
    
    %thousands of dollars
    
    2010
    
    
    2009
    
    
    Change
    
    
    translation
    
    
    tranlation
    
    
    changeNet salesPLP-USA
    
    $
    88,803
    
    
    $
    81,706
    
    
    $
    7,097
    
    
    $
    
    
    
    $
    7,097
    
    
    
    9
    %Australia
    
    
    37,837
    
    
    
    19,149
    
    
    
    18,688
    
    
    
    5,894
    
    
    
    12,794
    
    
    
    67Brazil
    
    
    27,206
    
    
    
    20,014
    
    
    
    7,192
    
    
    
    3,736
    
    
    
    3,456
    
    
    
    17South Africa
    
    
    8,887
    
    
    
    7,431
    
    
    
    1,456
    
    
    
    1,196
    
    
    
    260
    
    
    
    3Canada
    
    
    8,896
    
    
    
    8,440
    
    
    
    456
    
    
    
    957
    
    
    
    (501
    )
    
    
    (6
    )Poland
    
    
    11,378
    
    
    
    8,748
    
    
    
    2,630
    
    
    
    516
    
    
    
    2,114
    
    
    
    24All Other
    
    
    61,980
    
    
    
    41,906
    
    
    
    20,074
    
    
    
    4
    
    
    
    20,070
    
    
    
    48Consolidated
    
    $
    244,987
    
    
    $
    187,394
    
    
    $
    57,593
    
    
    $
    12,303
    
    
    $
    45,290
    
    
    
    24
    %
  Gross profit.
 Nine month period ended September 30Change
    
    
    Changedue to
    
    
    excludingcurrency
    
    
    currency
    
    
    %thousands of dollars
    
    2010
    
    
    2009
    
    
    Change
    
    
    translation
    
    
    translation
    
    
    changeGross profitPLP-USA
    
    $
    27,821
    
    
    $
    28,369
    
    
    $
    (548
    )
    
    $
    
    
    
    $
    (548
    )
    
    
    (2
    )%Australia
    
    
    12,134
    
    
    
    5,483
    
    
    
    6,651
    
    
    
    1,961
    
    
    
    4,690
    
    
    
    86Brazil
    
    
    7,589
    
    
    
    5,679
    
    
    
    1,910
    
    
    
    1,021
    
    
    
    889
    
    
    
    16South Africa
    
    
    4,054
    
    
    
    2,595
    
    
    
    1,459
    
    
    
    546
    
    
    
    913
    
    
    
    35Canada
    
    
    4,010
    
    
    
    3,695
    
    
    
    315
    
    
    
    423
    
    
    
    (108
    )
    
    
    (3
    )Poland
    
    
    3,229
    
    
    
    2,642
    
    
    
    587
    
    
    
    151
    
    
    
    436
    
    
    
    17All Other
    
    
    20,314
    
    
    
    14,579
    
    
    
    5,735
    
    
    
    69
    
    
    
    5,666
    
    
    
    39Consolidated
    
    $
    79,151
    
    
    $
    63,042
    
    
    $
    16,109
    
    
    $
    4,171
    
    
    $
    11,938
    
    
    
    19
    %
  23




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##### Table of Contents



Costs and expenses
 Nine month period ended September 30Change
    
    
    Changedue to
    
    
    excludingcurrency
    
    
    currency
    
    
    %thousands of dollars
    
    2010
    
    
    2009
    
    
    Change
    
    
    translation
    
    
    translation
    
    
    changeCosts and expensesPLP-USA
    
    $
    29,024
    
    
    $
    25,053
    
    
    $
    3,971
    
    
    $
    
    
    
    $
    3,971
    
    
    
    16
    %Australia
    
    
    6,963
    
    
    
    4,269
    
    
    
    2,694
    
    
    
    1,145
    
    
    
    1,549
    
    
    
    36Brazil
    
    
    5,208
    
    
    
    4,047
    
    
    
    1,161
    
    
    
    741
    
    
    
    420
    
    
    
    10South Africa
    
    
    1,510
    
    
    
    1,172
    
    
    
    338
    
    
    
    181
    
    
    
    157
    
    
    
    13Canada
    
    
    1,416
    
    
    
    1,171
    
    
    
    245
    
    
    
    159
    
    
    
    86
    
    
    
    7Poland
    
    
    2,254
    
    
    
    1,719
    
    
    
    535
    
    
    
    98
    
    
    
    437
    
    
    
    25All Other
    
    
    11,569
    
    
    
    8,513
    
    
    
    3,056
    
    
    
    97
    
    
    
    2,959
    
    
    
    35Consolidated
    
    $
    57,944
    
    
    $
    45,944
    
    
    $
    12,000
    
    
    $
    2,421
    
    
    $
    9,579
    
    
    
    21
    %
   24




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##### Table of Contents



Other income.
 Income taxes
 Net income
 Nine month period ended September 30Change
    
    
    Changedue to
    
    
    excludingcurrency
    
    
    currency
    
    
    %thousands of dollars
    
    2010
    
    
    2009
    
    
    Change
    
    
    translation
    
    
    translation
    
    
    changeNet incomePLP-USA
    
    $
    3,766
    
    
    $
    4,807
    
    
    $
    (1,041
    )
    
    $
    
    
    
    $
    (1,041
    )
    
    
    (22
    )%Australia
    
    
    1,951
    
    
    
    248
    
    
    
    1,703
    
    
    
    322
    
    
    
    1,381
    
    
    
    557Brazil
    
    
    1,829
    
    
    
    909
    
    
    
    920
    
    
    
    194
    
    
    
    726
    
    
    
    80South Africa
    
    
    1,524
    
    
    
    764
    
    
    
    760
    
    
    
    205
    
    
    
    555
    
    
    
    73Canada
    
    
    1,497
    
    
    
    1,464
    
    
    
    33
    
    
    
    150
    
    
    
    (117
    )
    
    
    (8
    )Poland
    
    
    729
    
    
    
    731
    
    
    
    (2
    )
    
    
    39
    
    
    
    (41
    )
    
    
    (6
    )All Other
    
    
    5,716
    
    
    
    3,595
    
    
    
    2,121
    
    
    
    (115
    )
    
    
    2,236
    
    
    
    62Consolidated
    
    $
    17,012
    
    
    $
    12,518
    
    
    $
    4,494
    
    
    $
    795
    
    
    $
    3,699
    
    
    
    30
    %
   25




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##### Table of Contents



26




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##### Table of Contents



ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
     
 ITEM 4. CONTROLS AND PROCEDURES
 Evaluation of Disclosure Controls and Procedures
   27




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##### Table of Contents



Changes in Internal Control over Financial Reporting
  
 PART II  OTHER INFORMATION
 
 ITEM 1. LEGAL PROCEEDINGS
  
 ITEM 1A. RISK FACTORS
  
 ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
  2007 PlanTotal Number ofTotal
    
    
    
    
    
    
    Shares Purchased as
    
    
    Maximum Number ofNumber of
    
    
    Average
    
    
    Part of Publicly
    
    
    Shares that may yet beShares
    
    
    Price Paid
    
    
    Announced Plans or
    
    
    Purchased under thePeriod (2010)
    
    Purchased
    
    
    per Share
    
    
    Programs
    
    
    Plans or ProgramsJuly
    
    
    
    
    
    
    
    
    
    
    188,748
    
    
    
    11,252August
    
    
    11,252
    
    
    $
    32.43
    
    
    
    200,000
    
    
    
    September
    
    
    
    
    
    
    
    
    
    
    200,000
    
    
    
    Total
    
    
    11,252
 2010 PlanCompany Purchases of Equity SecuritiesTotal Number ofTotal
    
    
    
    
    
    
    Shares Purchased as
    
    
    Maximum Number ofNumber of
    
    
    Average
    
    
    Part of Publicly
    
    
    Shares that may yet beShares
    
    
    Price Paid
    
    
    Announced Plans
    
    
    Purchased under thePeriod (2010)
    
    Purchased
    
    
    per Share
    
    
    or Programs
    
    
    Plans or ProgramsJuly
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    250,000August
    
    
    21,435
    
    
    $
    32.43
    
    
    
    21,435
    
    
    
    228,565September
    
    
    
    
    
    
    
    
    
    
    21,435
    
    
    
    228,565Total
    
    
    21,435
  28




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##### Table of Contents



ITEM 3. DEFAULTS UPON SENIOR SECURITIES
  
 ITEM 4. (Removed and Reserved)
  
 ITEM 5. OTHER INFORMATION
  
 ITEM 6. EXHIBITS
 2.1
    
    
    Agreement for sale and purchase of shares in Electropar Limited, dated May 15, 2010, by and
among the Company and Tony Lachlan Wallace, Grant Lachlan Wallace and Helen Amelia Wallace;
Grant Lachlan Wallace, Tony Lachlan Wallace and Alison Kay Wallace; and Cameron Lachlan
Wallace, Grant Lachlan Wallace and Tony Lachlan Wallace (the agreement does not include the
schedules and other attachments. Copies will be provided to the SEC upon request), filed
herewith.31.1
    
    
    Certifications of the Principal Executive Officer, Robert G. Ruhlman, pursuant to Section 302
of the Sarbanes-Oxley Act of 2002, filed herewith.31.2
    
    
    Certifications of the Principal Financial Officer, Eric R. Graef, pursuant to Section 302 of
the Sarbanes-Oxley Act of 2002, filed herewith.32.1
    
    
    Certification of the Principal Executive Officer, Robert G. Ruhlman, pursuant to Section 906
of the Sarbanes-Oxley Act of 2002, furnished.32.2
    
    
    Certification of the Principal Accounting Officer, Eric R. Graef, pursuant to Section 906 of
the Sarbanes-Oxley Act of 2002, furnished.
  29




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##### Table of Contents




    
    The overall demand for cable anchoring and control hardware for electrical transmission
and distribution lines on a worldwide basis, which has a slow growth rate in mature markets
such as the United States (U.S.), Canada, and Western Europe;
 
    
    The ability of our customers to raise funds needed to build the facilities their
customers require;
 
    
    Technological developments that affect longer-term trends for communication lines such
as wireless communication;
 
    
    The decreasing demands for product supporting copper-based infrastructure due to the
introduction of products using new technologies or adoption of new industry standards;
 
    
    The Companys success at continuing to develop proprietary technology to meet or exceed
new industry performance standards and individual customer expectations;
 
    
    The Companys success in strengthening and retaining relationships with the Companys
customers, growing sales at targeted accounts and expanding geographically;
 
    
    The extent to which the Company is successful in expanding the Companys product line
into new areas;
 
    
    The Companys ability to identify, complete and integrate acquisitions for profitable
growth;
 
    
    The potential impact of consolidation, deregulation and bankruptcy among the Companys
suppliers, competitors and customers;
 
    
    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;
 
    
    The effects of fluctuation in currency exchange rates upon the Companys reported
results from international operations, together with non-currency risks of investing in and
conducting significant operations in foreign countries, including those relating to
political, social, economic and regulatory factors;
  30




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##### Table of Contents




    
    Changes in significant government regulations affecting environmental compliances;
 
    
    The telecommunication markets continued deployment of Fiber-to-the-Premises;
 
    
    The Companys ability to obtain funding for future acquisitions;
 
    
    The potential impact of the depressed housing market on the Companys ongoing
profitability and future growth opportunities;
 
    
    The continued support by Federal, State, Local and Foreign Governments in incentive
programs for promoting renewable energy deployment;
 
    
    Those factors described under the heading Risk Factors on page 13 of the Companys
Annual Report on Form 10-K for the year ended December 31, 2009 filed on March 15, 2010.
  31




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##### Table of Contents



SIGNATURES
  November 5, 2010
    /s/  Robert G. RuhlmanRobert G. RuhlmanChairman, President and Chief Executive Officer
(Principal Executive Officer)November 5, 2010
    /s/ Eric R. GraefEric R. GraefChief Financial Officer and Vice President  Finance
(Principal Accounting Officer)  32




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##### Table of Contents



EXHIBIT INDEX
 2.1
    
    
    Agreement for sale and purchase of shares in Electropar Limited, dated May 15, 2010, by and
among the Company and Tony Lachlan Wallace, Grant Lachlan Wallace and Helen Amelia Wallace;
Grant Lachlan Wallace, Tony Lachlan Wallace and Alison Kay Wallace; and Cameron Lachlan
Wallace, Grant Lachlan Wallace and Tony Lachlan Wallace (the agreement does not include the
schedules and other attachments. Copies will be provided to the SEC upon request), filed
herewith.31.1
    
    
    Certifications of the Principal Executive Officer, Robert G. Ruhlman, pursuant to Section 302
of the Sarbanes-Oxley Act of 2002, filed herewith.31.2
    
    
    Certifications of the Principal Financial Officer, Eric R. Graef, pursuant to Section 302 of
the Sarbanes-Oxley Act of 2002, filed herewith.32.1
    
    
    Certification of the Principal Executive Officer, Robert G. Ruhlman, pursuant to Section 906
of the Sarbanes-Oxley Act of 2002, furnished.32.2
    
    
    Certification of the Principal Accounting Officer, Eric R. Graef, pursuant to Section 906 of
the Sarbanes-Oxley Act of 2002, furnished.
  33