##### 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 June 30, 2009
 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)
 þ o
 o o
  Large accelerated filer o
    
    Accelerated filer þ
    
    Non-accelerated filer o
    
    Smaller reporting company o(Do not check if a smaller reporting company)
 o 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
    
    
    17Item 3. Quantitative and Qualitative Disclosures About Market Risk
    
    
    27Item 4. Controls and Procedures
    
    
    27Part II  Other InformationItem 1. Legal Proceedings
    
    
    27Item 1A. Risk Factors
    
    
    27Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    28Item 3. Defaults Upon Senior Securities
    
    
    28Item 4. Submission of Matters to a Vote of Security Holders
    
    
    28Item 5. Other Information
    
    
    28Item 6. Exhibits
    
    
    29SIGNATURES
    
    
    32Exhibit 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)
 June 30
    
    
    December 31Thousands of dollars, except share and per share data
    
    2009
    
    
    2008ASSETSCash and cash equivalents
    
    $
    27,701
    
    
    $
    19,869Accounts receivable, less allowances of $974 ($972 in 2008)
    
    
    41,285
    
    
    
    36,899Inventories  net
    
    
    49,149
    
    
    
    48,412Deferred income taxes
    
    
    3,225
    
    
    
    2,786Prepaids and other
    
    
    4,982
    
    
    
    4,704TOTAL CURRENT ASSETS
    
    
    126,342
    
    
    
    112,670Property and equipment  net
    
    
    58,769
    
    
    
    55,940Patents and other intangibles  net
    
    
    3,538
    
    
    
    3,858Goodwill
    
    
    6,151
    
    
    
    5,520Deferred income taxes
    
    
    6,513
    
    
    
    6,943Other assets
    
    
    6,788
    
    
    
    5,944TOTAL ASSETS
    
    $
    208,101
    
    
    $
    190,875LIABILITIES AND SHAREHOLDERS EQUITYNotes payable to banks
    
    $
    4,025
    
    
    $
    3,101Current portion of long-term debt
    
    
    894
    
    
    
    494Trade accounts payable
    
    
    16,037
    
    
    
    14,632Accrued compensation and amounts withheld from employees
    
    
    8,925
    
    
    
    6,606Accrued expenses and other liabilities
    
    
    6,484
    
    
    
    4,574Accrued profit-sharing and other benefits
    
    
    2,424
    
    
    
    3,687Dividends payable
    
    
    1,073
    
    
    
    1,054Income taxes payable
    
    
    1,225
    
    
    
    1,100TOTAL CURRENT LIABILITIES
    
    
    41,087
    
    
    
    35,248Long-term debt, less current portion
    
    
    2,930
    
    
    
    2,653Unfunded pension obligation
    
    
    11,145
    
    
    
    11,303Income taxes payable, noncurrent
    
    
    1,536
    
    
    
    1,405Deferred income taxes
    
    
    683
    
    
    
    725Other noncurrent liabilities
    
    
    2,632
    
    
    
    2,540SHAREHOLDERS EQUITYPLPC shareholders equity:Common stock  $2 par value per share, 15,000,000 shares
authorized, 5,236,839 and 5,223,830 issued and outstanding,
net of 551,059 treasury shares at par, respectively
    
    
    10,474
    
    
    
    10,448Paid in capital
    
    
    4,610
    
    
    
    3,704Retained earnings
    
    
    150,938
    
    
    
    146,624Accumulated other comprehensive loss
    
    
    (18,421
    )
    
    
    (24,511
    )TOTAL PLPC SHAREHOLDERS EQUITY
    
    
    147,601
    
    
    
    136,265Noncontrolling interest
    
    
    487
    
    
    
    736TOTAL SHAREHOLDERS EQUITY
    
    
    148,088
    
    
    
    137,001TOTAL LIABILITIES AND
SHAREHOLDERS EQUITY
    
    $
    208,101
    
    
    $
    190,875
 See notes to consolidated financial statements (unaudited).
  3




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PREFORMED LINE PRODUCTS COMPANY
STATEMENTS OF CONSOLIDATED INCOME
(UNAUDITED)
 Three month periods
    
    
    Six month periodsended June 30
    
    

ended June 30Thousands, except per share data
    
    2009
    
    
    2008
    
    
    2009
    
    
    2008Net sales
    
    $
    59,568
    
    
    $
    75,362
    
    
    $
    118,262
    
    
    $
    135,227Cost of products sold
    
    
    39,718
    
    
    
    51,685
    
    
    
    79,834
    
    
    
    92,545GROSS PROFIT
    
    
    19,850
    
    
    
    23,677
    
    
    
    38,428
    
    
    
    42,682Costs and expensesSelling
    
    
    5,526
    
    
    
    6,186
    
    
    
    10,890
    
    
    
    11,760General and administrative
    
    
    7,371
    
    
    
    7,691
    
    
    
    14,423
    
    
    
    15,047Research and engineering
    
    
    2,159
    
    
    
    2,338
    
    
    
    4,220
    
    
    
    4,327Other operating expense (income)
    
    
    (311
    )
    
    
    233
    
    
    
    (22
    )
    
    
    14314,745
    
    
    
    16,448
    
    
    
    29,511
    
    
    
    31,277OPERATING INCOME
    
    
    5,105
    
    
    
    7,229
    
    
    
    8,917
    
    
    
    11,405Other income (expense)Interest income
    
    
    87
    
    
    
    216
    
    
    
    212
    
    
    
    430Interest expense
    
    
    (107
    )
    
    
    (138
    )
    
    
    (216
    )
    
    
    (277
    )Other income (expense)
    
    
    178
    
    
    
    22
    
    
    
    657
    
    
    
    20158
    
    
    
    100
    
    
    
    653
    
    
    
    173INCOME BEFORE INCOME TAXES AND DISCONTINUED OPERATIONS
    
    
    5,263
    
    
    
    7,329
    
    
    
    9,570
    
    
    
    11,578Income taxes
    
    
    1,721
    
    
    
    2,382
    
    
    
    3,311
    
    
    
    3,797INCOME FROM CONTINUING OPERATIONS, NET OF TAX
    
    
    3,542
    
    
    
    4,947
    
    
    
    6,259
    
    
    
    7,781Income from discontinued operations, net of tax
    
    
    
    
    
    
    620
    
    
    
    
    
    
    
    769NET INCOME
    
    
    3,542
    
    
    
    5,567
    
    
    
    6,259
    
    
    
    8,550Net income (loss) attributable to noncontrolling interest, net of tax
    
    
    (42
    )
    
    
    78
    
    
    
    (47
    )
    
    
    111NET INCOME ATTRIBUTABLE TO PLPC
    
    $
    3,584
    
    
    $
    5,489
    
    
    $
    6,306
    
    
    $
    8,439BASIC EARNINGS PER SHAREIncome per share from continuing operations attributable to PLPC shareholders
    
    $
    0.69
    
    
    $
    0.92
    
    
    $
    1.21
    
    
    $
    1.44Discontinued operations attributable to PLPC common shareholders
    
    $
    
    
    
    $
    0.12
    
    
    $
    
    
    
    $
    0.14Net income attributable to PLPC common shareholders
    
    $
    0.69
    
    
    $
    1.04
    
    
    $
    1.21
    
    
    $
    1.58DILUTED EARNINGS PER SHAREIncome per share from continuing operations attributable to PLPC shareholders
    
    $
    0.68
    
    
    $
    0.91
    
    
    $
    1.19
    
    
    $
    1.43Discontinued operations attributable to PLPC common shareholders
    
    $
    
    
    
    $
    0.12
    
    
    $
    
    
    
    $
    0.14Net income attributable to PLPC common shareholders
    
    $
    0.68
    
    
    $
    1.03
    
    
    $
    1.19
    
    
    $
    1.57Cash dividends declared per share
    
    $
    0.20
    
    
    $
    0.20
    
    
    $
    0.40
    
    
    $
    0.40Weighted-average number of shares outstanding  basic
    
    
    5,231
    
    
    
    5,296
    
    
    
    5,228
    
    
    
    5,339Weighted-average number of shares outstanding  diluted
    
    
    5,311
    
    
    
    5,345
    
    
    
    5,306
    
    
    
    5,387Amount attributable to PLPC common shareholdersIncome from continuing operations, net of tax
    
    $
    3,584
    
    
    $
    4,869
    
    
    $
    6,306
    
    
    $
    7,670Discontinued operations, net of tax
    
    
    
    
    
    
    620
    
    
    
    
    
    
    
    769Net Income
    
    $
    3,584
    
    
    $
    5,489
    
    
    $
    6,306
    
    
    $
    8,439
 See notes to consolidated financial statements (unaudited).
  4




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PREFORMED LINE PRODUCTS COMPANY
STATEMENTS OF CONSOLIDATED CASH FLOWS
(UNAUDITED)
 Six month periodsended June 30Thousands of dollars
    
    2009
    
    
    2008OPERATING ACTIVITIESNet income
    
    $
    6,259
    
    
    $
    8,550Less: income from discontinued operations
    
    
    
    
    
    
    769Income from continuing operations
    
    
    6,259
    
    
    
    7,781Adjustments to reconcile net income to net cash provided by operations:Depreciation and amortization
    
    
    3,404
    
    
    
    3,983Provision for accounts receivable allowances
    
    
    345
    
    
    
    248Provision for inventory reserves
    
    
    1,548
    
    
    
    735Deferred income taxes
    
    
    95
    
    
    
    (330
    )Share-based compensation expense
    
    
    669
    
    
    
    88Excess tax benefits from share-based awards
    
    
    (75
    )
    
    
    (16
    )Net investment in life insurance
    
    
    (33
    )
    
    
    (196
    )Other  net
    
    
    (9
    )
    
    
    67Changes in operating assets and liabilities:Accounts receivable
    
    
    (4,947
    )
    
    
    (11,113
    )Inventories
    
    
    431
    
    
    
    35Trade accounts payables and accrued liabilities
    
    
    3,154
    
    
    
    4,950Income taxes payable
    
    
    517
    
    
    
    1,175Other  net
    
    
    (144
    )
    
    
    (1,256
    )NET CASH PROVIDED BY OPERATING ACTIVITIES
    
    
    11,214
    
    
    
    6,151INVESTING ACTIVITIESCapital expenditures
    
    
    (4,198
    )
    
    
    (6,256
    )Business acquisitions
    
    
    (433
    )
    
    
    (231
    )Proceeds from the sale of discontinued operations
    
    
    750
    
    
    
    11,783Proceeds from the sale of property and equipment
    
    
    89
    
    
    
    185NET CASH (USED IN) PROVIDED BY INVESTING
ACTIVITIES
    
    
    (3,792
    )
    
    
    5,481FINANCING ACTIVITIESIncrease (decrease) in notes payable to banks
    
    
    818
    
    
    
    (987
    )Proceeds from the issuance of long-term debt
    
    
    706
    
    
    
    3,600Payments of long-term debt
    
    
    (250
    )
    
    
    (4,330
    )Dividends paid
    
    
    (2,125
    )
    
    
    (2,152
    )Excess tax benefits from share-based awards
    
    
    75
    
    
    
    16Proceeds from issuance of common shares
    
    
    188
    
    
    
    201Purchase of common shares for treasury
    
    
    (57
    )
    
    
    (7,457
    )NET CASH USED IN FINANCING ACTIVITIES
    
    
    (645
    )
    
    
    (11,109
    )Effects of exchange rate changes on cash and cash equivalents
    
    
    1,055
    
    
    
    54Net increase in cash and cash equivalents
    
    
    7,832
    
    
    
    577NET CASH USED IN DISCONTINUED OPERATIONSOperating cash flows
    
    
    
    
    
    
    958Investing cash flows
    
    
    
    
    
    
    (1,596
    )NET CASH USED IN DISCONTINUED OPERATIONS
    
    
    
    
    
    
    (638
    )Cash and cash equivalents at beginning of period
    
    
    19,869
    
    
    
    23,392CASH AND CASH EQUIVALENTS AT END OF PERIOD
    
    $
    27,701
    
    
    $
    23,331
 See notes to consolidated financial statements (unaudited).
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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
      Reclassifications
   Inventories  net
 June 30
    
    
    December 312009
    
    
    2008Finished products
    
    $
    21,988
    
    
    $
    21,829Work-in-process
    
    
    3,145
    
    
    
    2,382Raw materials
    
    
    31,179
    
    
    
    32,23156,312
    
    
    
    56,442Excess of current cost over LIFO cost
    
    
    (3,577
    )
    
    
    (5,122
    )Noncurrent portion of inventory
    
    
    (3,586
    )
    
    
    (2,908
    )$
    49,149
    
    
    $
    48,412
   6




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##### Table of Contents



Property and equipment  net
  June 30
    
    
    December 312009
    
    
    2008Land and improvements
    
    $
    5,707
    
    
    $
    5,490Buildings and improvements
    
    
    48,901
    
    
    
    47,048Machinery and equipment
    
    
    97,028
    
    
    
    91,097Construction in progress
    
    
    3,181
    
    
    
    2,133154,817
    
    
    
    145,768Less accumulated depreciation
    
    
    96,048
    
    
    
    89,828$
    58,769
    
    
    $
    55,940
   Comprehensive income
  PLPC
    
    
    Noncontrolling interest
    
    
    TotalThree month period
    
    
    Three month period
    
    
    Three month periodended June 30
    
    
    ended June 30
    
    
    ended June 302009
    
    
    2008
    
    
    2009
    
    
    2008
    
    
    2009
    
    
    2008Net income (loss)
    
    $
    3,584
    
    
    $
    5,489
    
    
    $
    (42
    )
    
    $
    78
    
    
    $
    3,542
    
    
    $
    5,567Other comprehensive income, net of tax:Change in unrealized gains on available-for-sale securities, net of
tax
    
    
    88
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    88
    
    
    
    Foreign currency translation adjustments
    
    
    9,172
    
    
    
    3,200
    
    
    
    9
    
    
    
    6
    
    
    
    9,181
    
    
    
    3,206Recognized net actuarial loss
    
    
    84
    
    
    
    4
    
    
    
    
    
    
    
    
    
    
    
    84
    
    
    
    4Total other comprehensive income, net of tax
    
    
    9,344
    
    
    
    3,204
    
    
    
    9
    
    
    
    6
    
    
    
    9,353
    
    
    
    3,210Comprehensive income (loss)
    
    $
    12,928
    
    
    $
    8,693
    
    
    $
    (33
    )
    
    $
    84
    
    
    $
    12,895
    
    
    $
    8,777
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PLPC
    
    
    Noncontrolling interest
    
    
    TotalSix month period
    
    
    Six month period
    
    
    Six month periodended June 30
    
    
    ended June 30
    
    
    ended June 302009
    
    
    2008
    
    
    2009
    
    
    2008
    
    
    2009
    
    
    2008Net income (loss)
    
    $
    6,306
    
    
    $
    8,439
    
    
    $
    (47
    )
    
    $
    111
    
    
    $
    6,259
    
    
    $
    8,550Other comprehensive income, net of tax:Change in unrealized losses on available-for-sale securities, net of
tax
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Foreign currency translation adjustments
    
    
    5,923
    
    
    
    5,104
    
    
    
    6
    
    
    
    6
    
    
    
    5,929
    
    
    
    5,110Recognized net actuarial loss
    
    
    167
    
    
    
    8
    
    
    
    
    
    
    
    
    
    
    
    167
    
    
    
    8Total other comprehensive income, net of tax
    
    
    6,090
    
    
    
    5,112
    
    
    
    6
    
    
    
    6
    
    
    
    6,096
    
    
    
    5,118Comprehensive income (loss)
    
    $
    12,396
    
    
    $
    13,551
    
    
    $
    (41
    )
    
    $
    117
    
    
    $
    12,355
    
    
    $
    13,668
 Legal proceedings
    Three month period
    
    
    Six month periodended June 30
    
    

ended June 302009
    
    
    2008
    
    
    2009
    
    
    2008Service cost
    
    $
    216
    
    
    $
    167
    
    
    $
    431
    
    
    $
    335Interest cost
    
    
    292
    
    
    
    256
    
    
    
    584
    
    
    
    512Expected return on plan
assets
    
    
    (183
    )
    
    
    (261
    )
    
    
    (366
    )
    
    
    (522
    )Recognized net actuarial loss
    
    
    132
    
    
    
    6
    
    
    
    264
    
    
    
    12Net periodic benefit cost
    
    $
    456
    
    
    $
    168
    
    
    $
    913
    
    
    $
    337
     8




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##### Table of Contents



For the three month
    
    
    For the six monthperiod ended June 30
    
    
    period ended June 302009
    
    
    2008
    
    
    2009
    
    
    2008NumeratorAmount attributable to PLPC shareholdersIncome from continuing operations
    
    $
    3,584
    
    
    $
    4,869
    
    
    $
    6,306
    
    
    $
    7,670Income from discontinued operations
    
    
    
    
    
    
    620
    
    
    
    
    
    
    
    769Net income attributable to PLPC
    
    $
    3,584
    
    
    $
    5,489
    
    
    $
    6,306
    
    
    $
    8,439Denominator (in thousands)Determination of sharesWeighted-average common shares outstanding
    
    
    5,231
    
    
    
    5,296
    
    
    
    5,228
    
    
    
    5,339Dilutive effect  share-based awards
    
    
    80
    
    
    
    49
    
    
    
    78
    
    
    
    48Diluted weighted-average common shares
outstanding
    
    
    5,311
    
    
    
    5,345
    
    
    
    5,306
    
    
    
    5,387Earnings per common share attributable to
PLPC shareholdersBasicIncome from continuing operations
    
    $
    0.69
    
    
    $
    0.92
    
    
    $
    1.21
    
    
    $
    1.44Income from discontinued operations
    
    $
    
    
    
    $
    0.12
    
    
    $
    
    
    
    $
    0.14Net income attributable to PLPC
    
    $
    0.69
    
    
    $
    1.04
    
    
    $
    1.21
    
    
    $
    1.58DilutedIncome from continuing operations
    
    $
    0.68
    
    
    $
    0.91
    
    
    $
    1.19
    
    
    $
    1.43Income from discontinued operations
    
    $
    
    
    
    $
    0.12
    
    
    $
    
    
    
    $
    0.14Net income attributable to PLPC
    
    $
    0.68
    
    
    $
    1.03
    
    
    $
    1.19
    
    
    $
    1.57
    June 30, 2009
    
    
    December 31, 2008Gross Carrying
    
    
    Accumulated
    
    
    Gross Carrying
    
    
    AccumulatedAmount
    
    
    Amortization
    
    
    Amount
    
    
    AmortizationFinite-lived intangible assetsPatents
    
    $
    4,807
    
    
    $
    (3,057
    )
    
    $
    4,807
    
    
    $
    (2,901
    )Land use rights
    
    
    1,275
    
    
    
    (43
    )
    
    
    1,350
    
    
    
    (32
    )Customer relationships
    
    
    1,003
    
    
    
    (447
    )
    
    
    1,003
    
    
    
    (369
    )$
    7,085
    
    
    $
    (3,547
    )
    
    $
    7,160
    
    
    $
    (3,302
    )Indefinite-lived intangible assetsGoodwill
    
    $
    6,151
    
    
    
    
    
    
    $
    5,520
    9




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##### Table of Contents



Australia
    
    
    South Africa
    
    
    Poland
    
    
    All Other
    
    
    TotalBalance at January 1, 2009
    
    $
    1,735
    
    
    $
    41
    
    
    $
    1,140
    
    
    $
    2,604
    
    
    $
    5,520Additions
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    433
    
    
    
    433Curency translation
    
    
    286
    
    
    
    8
    
    
    
    (94
    )
    
    
    (2
    )
    
    
    198Balance at June 30, 2009
    
    $
    2,021
    
    
    $
    49
    
    
    $
    1,046
    
    
    $
    3,035
    
    
    $
    6,151
  The 1999 Stock Option Plan
   2008Risk-free interest rate
    
    
    4.2
    %Dividend yield
    
    
    2.8
    %Expected life (years)
    
    
    6Expected volatility
    
    
    34.4
    %
  Weighted-Weighted-
    
    
    AverageAverage
    
    
    Remaining
    
    
    AggregateNumber of
    
    
    Exercise Price
    
    
    Contractual
    
    
    IntrinsicShares
    
    
    per Share
    
    
    Term (Years)
    
    
    ValueOutstanding at January 1, 2009
    
    
    107,092
    
    
    $
    27.83Granted
    
    
    
    
    
    
    Exercised
    
    
    (13,609
    )
    
    $
    15.95Forfeited
    
    
    
    
    
    
    Outstanding (vested and expected to vest) at June 30, 2009
    
    
    93,483
    
    
    $
    29.56
    
    
    
    5.1
    
    
    $
    1,454Exercisable at June 30, 2009
    
    
    83,233
    
    
    $
    27.57
    
    
    
    4.6
    
    
    $
    1,422
  10




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##### Table of Contents



Long Term Incentive Plan of 2008
     Restricted Share AwardsPerformance
    
    
    
    
    
    
    Total
    
    
    Weighted-Averageand Service
    
    
    Service
    
    
    Restricted
    
    
    Grant-DateRequired
    
    
    Required
    
    
    Awards
    
    
    Fair ValueNonvested as of January 1,
2009
    
    
    39,364
    
    
    
    4,273
    
    
    
    43,637
    
    
    $
    54.74Granted
    
    
    75,982
    
    
    
    8,202
    
    
    
    84,184
    
    
    
    29.75Vested
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Forfeited
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Nonvested as of June 30, 2009
    
    
    115,346
    
    
    
    12,475
    
    
    
    127,821
    
    
    $
    38.28
    11




---



##### Table of Contents



June 30, 2009
    
    
    December 31, 2008Fair Value
    
    
    Carrying Value
    
    
    Fair Value
    
    
    Carrying ValueLong-term debt and
related current
maturities
    
    $
    3,767
    
    
    $
    3,824
    
    
    $
    3,294
    
    
    $
    3,147
  12




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##### Table of Contents



13




---



##### Table of Contents



14




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##### Table of Contents



Three month period
    
    
    Six month periodended June 30
    
    
    ended June 302009
    
    
    2008
    
    
    2009
    
    
    2008Net salesPLP-USA
    
    $
    26,028
    
    
    $
    30,697
    
    
    $
    54,699
    
    
    $
    55,704Australia
    
    
    6,260
    
    
    
    7,783
    
    
    
    11,942
    
    
    
    14,688Brazil
    
    
    5,690
    
    
    
    9,884
    
    
    
    10,882
    
    
    
    15,939South Africa
    
    
    2,293
    
    
    
    2,536
    
    
    
    4,147
    
    
    
    4,137Canada
    
    
    3,200
    
    
    
    2,706
    
    
    
    5,555
    
    
    
    5,072Poland
    
    
    2,737
    
    
    
    5,439
    
    
    
    5,695
    
    
    
    9,374All Other
    
    
    13,360
    
    
    
    16,317
    
    
    
    25,342
    
    
    
    30,313Total net sales
    
    $
    59,568
    
    
    $
    75,362
    
    
    $
    118,262
    
    
    $
    135,227Intersegment salesPLP-USA
    
    $
    1,545
    
    
    $
    1,609
    
    
    $
    3,075
    
    
    $
    3,051Australia
    
    
    19
    
    
    
    21
    
    
    
    34
    
    
    
    19Brazil
    
    
    230
    
    
    
    425
    
    
    
    970
    
    
    
    1,010South Africa
    
    
    192
    
    
    
    307
    
    
    
    204
    
    
    
    500Canada
    
    
    80
    
    
    
    163
    
    
    
    116
    
    
    
    213Poland
    
    
    306
    
    
    
    104
    
    
    
    744
    
    
    
    232All Other
    
    
    2,771
    
    
    
    1,395
    
    
    
    5,230
    
    
    
    4,334Total intersegment sales
    
    $
    5,143
    
    
    $
    4,024
    
    
    $
    10,373
    
    
    $
    9,359Interest incomePLP-USA
    
    $
    
    
    
    $
    21
    
    
    $
    15
    
    
    $
    67Australia
    
    
    5
    
    
    
    31
    
    
    
    9
    
    
    
    55Brazil
    
    
    20
    
    
    
    18
    
    
    
    38
    
    
    
    29South Africa
    
    
    29
    
    
    
    46
    
    
    
    67
    
    
    
    73Canada
    
    
    3
    
    
    
    24
    
    
    
    10
    
    
    
    53Poland
    
    
    9
    
    
    
    1
    
    
    
    18
    
    
    
    4All Other
    
    
    21
    
    
    
    75
    
    
    
    55
    
    
    
    149Total interest income
    
    $
    87
    
    
    $
    216
    
    
    $
    212
    
    
    $
    430Interest expensePLP-USA
    
    $
    
    
    
    $
    (14
    )
    
    $
    (8
    )
    
    $
    (22
    )Australia
    
    
    (20
    )
    
    
    (46
    )
    
    
    (35
    )
    
    
    (96
    )Brazil
    
    
    (14
    )
    
    
    (3
    )
    
    
    (25
    )
    
    
    (5
    )South Africa
    
    
    (1
    )
    
    
    
    
    
    
    (1
    )
    
    
    Canada
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Poland
    
    
    (4
    )
    
    
    (22
    )
    
    
    (12
    )
    
    
    (40
    )All Other
    
    
    (68
    )
    
    
    (53
    )
    
    
    (135
    )
    
    
    (114
    )Total interest expense
    
    $
    (107
    )
    
    $
    (138
    )
    
    $
    (216
    )
    
    $
    (277
    )Income from continuing operations, net of taxPLP-USA
    
    $
    1,094
    
    
    $
    1,471
    
    
    $
    2,250
    
    
    $
    2,349Australia
    
    
    62
    
    
    
    139
    
    
    
    112
    
    
    
    227Brazil
    
    
    51
    
    
    
    456
    
    
    
    145
    
    
    
    576South Africa
    
    
    304
    
    
    
    591
    
    
    
    611
    
    
    
    914Canada
    
    
    616
    
    
    
    540
    
    
    
    938
    
    
    
    841Poland
    
    
    123
    
    
    
    522
    
    
    
    548
    
    
    
    722All Other
    
    
    1,292
    
    
    
    1,228
    
    
    
    1,655
    
    
    
    2,152Total income from continuing operations, net of tax
    
    
    3,542
    
    
    
    4,947
    
    
    
    6,259
    
    
    
    7,781Income from discontinued operations, net of tax
    
    
    
    
    
    
    620
    
    
    
    
    
    
    
    769Net income
    
    
    3,542
    
    
    
    5,567
    
    
    
    6,259
    
    
    
    8,550Net income (loss) attributable to noncontrolling
interest, net of tax
    
    
    (42
    )
    
    
    78
    
    
    
    (47
    )
    
    
    111Net income attributable to PLPC
    
    $
    3,584
    
    
    $
    5,489
    
    
    $
    6,306
    
    
    $
    8,439
  15




---



##### Table of Contents



June 30
    
    
    December 312009
    
    
    2008AssetsPLP-USA
    
    $
    73,578
    
    
    $
    72,641Australia
    
    
    23,560
    
    
    
    19,438Brazil
    
    
    21,507
    
    
    
    16,087South Africa
    
    
    7,982
    
    
    
    5,569Canada
    
    
    10,060
    
    
    
    8,545Poland
    
    
    13,394
    
    
    
    13,920All Other
    
    
    58,020
    
    
    
    54,675Total assets
    
    $
    208,101
    
    
    $
    190,875
    
    16




---



##### Table of Contents



ITEM 2.
    
    MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
       Preface
    17




---



##### Table of Contents



Net Sales
 Three month period ended June 30Change
    
    
    Changedue to
    
    
    excludingcurrency
    
    
    currency
    
    
    %thousands of dollars
    
    2009
    
    
    2008
    
    
    Change
    
    
    translation
    
    
    tranlation
    
    
    changeNet salesPLP-USA
    
    $
    26,028
    
    
    $
    30,697
    
    
    $
    (4,669
    )
    
    $
    
    
    
    $
    (4,669
    )
    
    
    (15
    )%Australia
    
    
    6,260
    
    
    
    7,783
    
    
    
    (1,523
    )
    
    
    (1,540
    )
    
    
    17
    
    
    
    Brazil
    
    
    5,690
    
    
    
    9,884
    
    
    
    (4,194
    )
    
    
    (1,424
    )
    
    
    (2,770
    )
    
    
    (28
    )South Africa
    
    
    2,293
    
    
    
    2,536
    
    
    
    (243
    )
    
    
    (219
    )
    
    
    (24
    )
    
    
    (1
    )Canada
    
    
    3,200
    
    
    
    2,706
    
    
    
    494
    
    
    
    (503
    )
    
    
    997
    
    
    
    37Poland
    
    
    2,737
    
    
    
    5,439
    
    
    
    (2,702
    )
    
    
    (1,376
    )
    
    
    (1,326
    )
    
    
    (24
    )All Other
    
    
    13,360
    
    
    
    16,317
    
    
    
    (2,957
    )
    
    
    (1,559
    )
    
    
    (1,398
    )
    
    
    (9
    )Consolidated
    
    $
    59,568
    
    
    $
    75,362
    
    
    $
    (15,794
    )
    
    $
    (6,621
    )
    
    $
    (9,173
    )
    
    
    (12
    )%
   18




---



##### Table of Contents



Gross profit.
 Three month period ended June 30Change
    
    
    Changedue to
    
    
    excludingcurrency
    
    
    currency
    
    
    %thousands of dollars
    
    2009
    
    
    2008
    
    
    Change
    
    
    translation
    
    
    translation
    
    
    changeGross profitPLP-USA
    
    $
    8,808
    
    
    $
    9,584
    
    
    $
    (776
    )
    
    $
    
    
    
    $
    (776
    )
    
    
    (8
    )%Australia
    
    
    1,694
    
    
    
    2,343
    
    
    
    (649
    )
    
    
    (402
    )
    
    
    (247
    )
    
    
    (11
    )Brazil
    
    
    1,302
    
    
    
    2,030
    
    
    
    (728
    )
    
    
    (328
    )
    
    
    (400
    )
    
    
    (20
    )South Africa
    
    
    901
    
    
    
    1,258
    
    
    
    (357
    )
    
    
    (93
    )
    
    
    (264
    )
    
    
    (21
    )Canada
    
    
    1,435
    
    
    
    1,271
    
    
    
    164
    
    
    
    (228
    )
    
    
    392
    
    
    
    31Poland
    
    
    800
    
    
    
    1,497
    
    
    
    (697
    )
    
    
    (399
    )
    
    
    (298
    )
    
    
    (20
    )All Other
    
    
    4,910
    
    
    
    5,694
    
    
    
    (784
    )
    
    
    (546
    )
    
    
    (238
    )
    
    
    (4
    )Consolidated
    
    $
    19,850
    
    
    $
    23,677
    
    
    $
    (3,827
    )
    
    $
    (1,996
    )
    
    $
    (1,831
    )
    
    
    (8
    )%
  Cost and expenses
 Three month period ended June 30Change
    
    
    Changedue to
    
    
    excludingcurrency
    
    
    currency
    
    
    %thousands of dollars
    
    2009
    
    
    2008
    
    
    Change
    
    
    translation
    
    
    translation
    
    
    changeCosts and expensesPLP-USA
    
    $
    7,753
    
    
    $
    8,555
    
    
    $
    (802
    )
    
    $
    
    
    
    $
    (802
    )
    
    
    (9
    )%Australia
    
    
    1,293
    
    
    
    1,755
    
    
    
    (462
    )
    
    
    (318
    )
    
    
    (144
    )
    
    
    (8
    )Brazil
    
    
    1,217
    
    
    
    1,261
    
    
    
    (44
    )
    
    
    (242
    )
    
    
    198
    
    
    
    16South Africa
    
    
    417
    
    
    
    359
    
    
    
    58
    
    
    
    (39
    )
    
    
    97
    
    
    
    27Canada
    
    
    388
    
    
    
    408
    
    
    
    (20
    )
    
    
    (63
    )
    
    
    43
    
    
    
    11Poland
    
    
    650
    
    
    
    829
    
    
    
    (179
    )
    
    
    (330
    )
    
    
    151
    
    
    
    18All Other
    
    
    3,027
    
    
    
    3,281
    
    
    
    (254
    )
    
    
    (408
    )
    
    
    154
    
    
    
    5Consolidated
    
    $
    14,745
    
    
    $
    16,448
    
    
    $
    (1,703
    )
    
    $
    (1,400
    )
    
    $
    (303
    )
    
    
    (2
    )%
  19




---



##### Table of Contents



Operating income
 Other income (expense)
 Income taxes
  20




---



##### Table of Contents



Income from continuing operations, net of tax
 Three month period ended June 30Change
    
    
    Changedue to
    
    
    excludingcurrency
    
    
    currency
    
    
    %thousands of dollars
    
    2009
    
    
    2008
    
    
    Change
    
    
    translation
    
    
    translation
    
    
    changeIncome from continuing
operations, net of taxPLP-USA
    
    
    1,094
    
    
    $
    1,471
    
    
    $
    (377
    )
    
    $
    
    
    
    $
    (377
    )
    
    
    (26
    )%Australia
    
    
    62
    
    
    
    139
    
    
    
    (77
    )
    
    
    (7
    )
    
    
    (70
    )
    
    
    (50
    )Brazil
    
    
    51
    
    
    
    456
    
    
    
    (405
    )
    
    
    (77
    )
    
    
    (328
    )
    
    
    (72
    )South Africa
    
    
    304
    
    
    
    591
    
    
    
    (287
    )
    
    
    (34
    )
    
    
    (253
    )
    
    
    (43
    )Canada
    
    
    616
    
    
    
    540
    
    
    
    76
    
    
    
    (97
    )
    
    
    173
    
    
    
    32Poland
    
    
    123
    
    
    
    522
    
    
    
    (399
    )
    
    
    (56
    )
    
    
    (343
    )
    
    
    (66
    )All Other
    
    
    1,292
    
    
    
    1,228
    
    
    
    64
    
    
    
    (48
    )
    
    
    112
    
    
    
    9Consolidated
    
    $
    3,542
    
    
    $
    4,947
    
    
    $
    (1,405
    )
    
    $
    (319
    )
    
    $
    (1,086
    )
    
    
    (22
    )%
   Net Sales
 Six month period ended June 30Change
    
    
    Changedue to
    
    
    excludingcurrency
    
    
    currency
    
    
    %thousands of dollars
    
    2009
    
    
    2008
    
    
    Change
    
    
    translation
    
    
    translation
    
    
    changeNet salesPLP-USA
    
    $
    54,699
    
    
    $
    55,704
    
    
    $
    (1,005
    )
    
    $
    
    
    
    $
    (1,005
    )
    
    
    (2
    )%Australia
    
    
    11,942
    
    
    
    14,688
    
    
    
    (2,746
    )
    
    
    (3,639
    )
    
    
    893
    
    
    
    6Brazil
    
    
    10,882
    
    
    
    15,939
    
    
    
    (5,057
    )
    
    
    (3,206
    )
    
    
    (1,851
    )
    
    
    (12
    )South Africa
    
    
    4,147
    
    
    
    4,137
    
    
    
    10
    
    
    
    (724
    )
    
    
    734
    
    
    
    18Canada
    
    
    5,555
    
    
    
    5,072
    
    
    
    483
    
    
    
    (1,064
    )
    
    
    1,547
    
    
    
    31Poland
    
    
    5,695
    
    
    
    9,374
    
    
    
    (3,679
    )
    
    
    (2,729
    )
    
    
    (950
    )
    
    
    (10
    )All Other
    
    
    25,342
    
    
    
    30,313
    
    
    
    (4,971
    )
    
    
    (3,320
    )
    
    
    (1,651
    )
    
    
    (5
    )Consolidated
    
    $
    118,262
    
    
    $
    135,227
    
    
    $
    (16,965
    )
    
    $
    (14,682
    )
    
    $
    (2,283
    )
    
    
    (2
    )%
  21




---



##### Table of Contents



Gross profit.
 Six month period ended June 30Change
    
    
    Changedue to
    
    
    excludingcurrency
    
    
    currency
    
    
    %thousands of dollars
    
    2009
    
    
    2008
    
    
    Change
    
    
    translation
    
    
    translation
    
    
    changeGross profitPLP-USA
    
    $
    18,128
    
    
    $
    17,684
    
    
    $
    444
    
    
    $
    
    
    
    $
    444
    
    
    
    3
    %Australia
    
    
    3,247
    
    
    
    4,373
    
    
    
    (1,126
    )
    
    
    (970
    )
    
    
    (156
    )
    
    
    (4
    )Brazil
    
    
    2,739
    
    
    
    3,514
    
    
    
    (775
    )
    
    
    (809
    )
    
    
    34
    
    
    
    1South Africa
    
    
    1,644
    
    
    
    1,988
    
    
    
    (344
    )
    
    
    (302
    )
    
    
    (42
    )
    
    
    (2
    )Canada
    
    
    2,402
    
    
    
    2,281
    
    
    
    121
    
    
    
    (459
    )
    
    
    580
    
    
    
    25Poland
    
    
    1,741
    
    
    
    2,431
    
    
    
    (690
    )
    
    
    (843
    )
    
    
    153
    
    
    
    6All Other
    
    
    8,527
    
    
    
    10,411
    
    
    
    (1,884
    )
    
    
    (1,150
    )
    
    
    (734
    )
    
    
    (7
    )Consolidated
    
    $
    38,428
    
    
    $
    42,682
    
    
    $
    (4,254
    )
    
    $
    (4,533
    )
    
    $
    279
    
    
    
    1
    %
   22




---



##### Table of Contents



Cost and expenses
 Six month period ended June 30, 2009Change
    
    
    Changedue to
    
    
    excludingcurrency
    
    
    currency
    
    
    %thousands of dollars
    
    2009
    
    
    2008
    
    
    Change
    
    
    translation
    
    
    translation
    
    
    changeCosts and expensesPLP-USA
    
    $
    16,385
    
    
    $
    16,288
    
    
    $
    97
    
    
    $
    
    
    
    $
    97
    
    
    
    1
    %Australia
    
    
    2,526
    
    
    
    3,319
    
    
    
    (793
    )
    
    
    (768
    )
    
    
    (25
    )
    
    
    (1
    )Brazil
    
    
    2,453
    
    
    
    2,531
    
    
    
    (78
    )
    
    
    (655
    )
    
    
    577
    
    
    
    23South Africa
    
    
    691
    
    
    
    590
    
    
    
    101
    
    
    
    (114
    )
    
    
    215
    
    
    
    36Canada
    
    
    781
    
    
    
    855
    
    
    
    (74
    )
    
    
    (156
    )
    
    
    82
    
    
    
    10Poland
    
    
    1,061
    
    
    
    1,481
    
    
    
    (420
    )
    
    
    (505
    )
    
    
    85
    
    
    
    6All Other
    
    
    5,614
    
    
    
    6,213
    
    
    
    (599
    )
    
    
    (841
    )
    
    
    242
    
    
    
    4Consolidated
    
    $
    29,511
    
    
    $
    31,277
    
    
    $
    (1,766
    )
    
    $
    (3,039
    )
    
    $
    1,273
    
    
    
    4
    %
  Operating income
 Other income (expense)
 Income taxes
  23




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##### Table of Contents



Income from continuing operations, net of tax
 Six month period ended June 30Change
    
    
    Changedue to
    
    
    excludingcurrency
    
    
    currency
    
    
    %thousands of dollars
    
    2009
    
    
    2008
    
    
    Change
    
    
    translation
    
    
    translation
    
    
    changeIncome from continuing
operations, net of taxPLP-USA
    
    
    2,250
    
    
    $
    2,349
    
    
    $
    (99
    )
    
    $
    
    
    
    $
    (99
    )
    
    
    (4
    )%Australia
    
    
    112
    
    
    
    227
    
    
    
    (115
    )
    
    
    (23
    )
    
    
    (92
    )
    
    
    (41
    )Brazil
    
    
    145
    
    
    
    576
    
    
    
    (431
    )
    
    
    (108
    )
    
    
    (323
    )
    
    
    (56
    )South Africa
    
    
    611
    
    
    
    914
    
    
    
    (303
    )
    
    
    (121
    )
    
    
    (182
    )
    
    
    (20
    )Canada
    
    
    938
    
    
    
    841
    
    
    
    97
    
    
    
    (175
    )
    
    
    272
    
    
    
    32Poland
    
    
    548
    
    
    
    722
    
    
    
    (174
    )
    
    
    (266
    )
    
    
    92
    
    
    
    13All Other
    
    
    1,655
    
    
    
    2,152
    
    
    
    (497
    )
    
    
    (173
    )
    
    
    (324
    )
    
    
    (15
    )Consolidated
    
    $
    6,259
    
    
    $
    7,781
    
    
    $
    (1,522
    )
    
    $
    (866
    )
    
    $
    (656
    )
    
    
    (8
    )%
       24




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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
  Changes in Internal Control over Financial Reporting
  
 PART II  OTHER INFORMATION
 
 ITEM 1.
    
    LEGAL PROCEEDINGS
  
 ITEM 1A.
    
    RISK FACTORS
   27




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##### Table of Contents



ITEM 2.
    
    UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
  Total
    
    
    
    
    
    
    Total Number of Shares
    
    
    Maximum Number ofNumber of
    
    
    Average
    
    
    Purchased as Part of
    
    
    Shares that may yet beShares
    
    
    Price Paid
    
    
    Publicly Announced
    
    
    Purchased under thePeriod (2009)
    
    Purchased
    
    
    per Share
    
    
    Plans or Programs
    
    
    Plans or ProgramsApril
    
    
    
    
    
    
    
    
    
    
    185,748
    
    
    
    14,252May
    
    
    
    
    
    
    
    
    
    
    185,748
    
    
    
    14,252June
    
    
    
    
    
    
    
    
    
    
    185,748
    
    
    
    14,252Total
    
    
    
 
 ITEM 3.
    
    DEFAULTS UPON SENIOR SECURITIES
  
 ITEM 4.
    
    SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
  Term Expiration
    
    
    Votes For
    
    
    Votes Withheld
    
    
    Abstention
    
    
    Shares not VotedBarbara P. Ruhlman
    
    
    2011
    
    
    
    3,947,186
    
    
    
    726,196
    
    
    
    138,564
    
    
    
    413,684Robert G. Ruhlman
    
    
    2011
    
    
    
    4,673,382
    
    
    
    
    
    
    
    138,564
    
    
    
    413,684Richard R. Gascoigne
    
    
    2011
    
    
    
    3,959,845
    
    
    
    713,537
    
    
    
    138,564
    
    
    
    413,684
  
 
 ITEM 5.
    
    OTHER INFORMATION
   28




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##### Table of Contents



ITEM 6.
    
    EXHIBITS
 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, 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;
  30




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
    
    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;
 
    
    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;
 
    
    Those factors described under the heading Risk Factors on page 12 of the Companys
Annual Report on Form 10-K for the year ended December 31, 2008 filed on March 13, 2009.
  31




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##### Table of Contents



SIGNATURES
  August 7, 2009
    /s/  Robert G. RuhlmanRobert G. RuhlmanChairman, President and Chief Executive Officer

(Principal Executive Officer)August 7, 2009
    /s/ Eric R. GraefEric R. GraefChief Financial Officer and Vice President  Finance 
(Principal Accounting Officer)  32




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EXHIBIT INDEX
 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