##### 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, 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
    
    
    26Item 4. Controls and Procedures
    
    
    26Part II  Other InformationItem 1. Legal Proceedings
    
    
    26Item 1A. Risk Factors
    
    
    27Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    27Item 3. Defaults Upon Senior Securities
    
    
    27Item 4. (Removed and Reserved)
    
    
    27Item 5. Other Information
    
    
    27Item 6. Exhibits
    
    
    27SIGNATURES
    
    
    30Exhibit 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
    
    2010
    
    
    2009ASSETSCash and cash equivalents
    
    $
    22,110
    
    
    $
    24,097Accounts receivable, less allowances of $1,157 ($995 in 2009)
    
    
    51,894
    
    
    
    49,245Inventories  net
    
    
    57,131
    
    
    
    56,036Deferred income taxes
    
    
    3,452
    
    
    
    3,256Prepaids
    
    
    3,705
    
    
    
    3,214Prepaid taxes
    
    
    3,759
    
    
    
    1,049Other current assets
    
    
    1,241
    
    
    
    2,062TOTAL CURRENT ASSETS
    
    
    143,292
    
    
    
    138,959Property and equipment  net
    
    
    68,304
    
    
    
    67,766Patents and other intangibles  net
    
    
    7,501
    
    
    
    8,087Goodwill
    
    
    6,654
    
    
    
    6,925Deferred income taxes
    
    
    5,038
    
    
    
    4,358Other assets
    
    
    9,287
    
    
    
    9,277TOTAL ASSETS
    
    $
    240,076
    
    
    $
    235,372LIABILITIES AND SHAREHOLDERS EQUITYNotes payable to banks
    
    $
    3,268
    
    
    $
    3,181Current portion of long-term debt
    
    
    1,080
    
    
    
    1,330Trade accounts payable
    
    
    20,405
    
    
    
    18,764Accrued compensation and amounts withheld from employees
    
    
    11,167
    
    
    
    8,345Accrued expenses and other liabilities
    
    
    7,490
    
    
    
    8,375Accrued profit-sharing and other benefits
    
    
    2,652
    
    
    
    3,890Dividends payable
    
    
    1,091
    
    
    
    1,076Income taxes payable and deferred income taxes
    
    
    1,522
    
    
    
    1,379TOTAL CURRENT LIABILITIES
    
    
    48,675
    
    
    
    46,340Long-term debt, less current portion
    
    
    3,704
    
    
    
    3,099Unfunded pension obligation
    
    
    9,202
    
    
    
    8,678Income taxes payable, noncurrent
    
    
    1,722
    
    
    
    1,898Deferred income taxes
    
    
    852
    
    
    
    1,515Other noncurrent liabilities
    
    
    2,924
    
    
    
    3,021SHAREHOLDERS EQUITYPLPC Shareholders equity:Common stock  $2 par value per share, 15,000,000 shares authorized,
5,253,306 and 5,248,298
issued and outstanding, net of 553,747 and 554,059 treasury shares at par, respectively
    
    
    10,507
    
    
    
    10,497Paid in capital
    
    
    7,301
    
    
    
    5,885Retained earnings
    
    
    171,048
    
    
    
    165,953Accumulated other comprehensive loss
    
    
    (15,591
    )
    
    
    (11,369
    )TOTAL PLPC SHAREHOLDERS EQUITY
    
    
    173,265
    
    
    
    170,966Noncontrolling interest
    
    
    (268
    )
    
    
    (145
    )TOTAL SHAREHOLDERS EQUITY
    
    
    172,997
    
    
    
    170,821TOTAL LIABILITIES AND SHAREHOLDERS EQUITY
    
    $
    240,076
    
    
    $
    235,372
 See notes to consolidated financial statements (unaudited).
  3




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##### Table of Contents



PREFORMED LINE PRODUCTS COMPANY
STATEMENTS OF CONSOLIDATED INCOME
(UNAUDITED)
 Three month periods ended June 30
    
    
    Six month periods ended June 302010
    
    
    2009
    
    
    2010
    
    
    2009(Thousands of dollars, except share and per share data)Net sales
    
    $
    82,137
    
    
    $
    59,568
    
    
    $
    151,045
    
    
    $
    118,262Cost of products sold
    
    
    54,682
    
    
    
    39,718
    
    
    
    103,565
    
    
    
    79,834GROSS PROFIT
    
    
    27,455
    
    
    
    19,850
    
    
    
    47,480
    
    
    
    38,428Costs and expensesSelling
    
    
    7,038
    
    
    
    5,526
    
    
    
    13,540
    
    
    
    10,890General and administrative
    
    
    9,666
    
    
    
    7,371
    
    
    
    19,144
    
    
    
    14,423Research and engineering
    
    
    2,700
    
    
    
    2,159
    
    
    
    5,559
    
    
    
    4,220Other operating expense (income)
    
    
    1,135
    
    
    
    (311
    )
    
    
    990
    
    
    
    (22
    )20,539
    
    
    
    14,745
    
    
    
    39,233
    
    
    
    29,511OPERATING INCOME
    
    
    6,916
    
    
    
    5,105
    
    
    
    8,247
    
    
    
    8,917Other income (expense)Interest income
    
    
    94
    
    
    
    87
    
    
    
    177
    
    
    
    212Interest expense
    
    
    (126
    )
    
    
    (107
    )
    
    
    (296
    )
    
    
    (216
    )Other income
    
    
    409
    
    
    
    178
    
    
    
    760
    
    
    
    657377
    
    
    
    158
    
    
    
    641
    
    
    
    653INCOME BEFORE INCOME TAXES
    
    
    7,293
    
    
    
    5,263
    
    
    
    8,888
    
    
    
    9,570Income taxes
    
    
    1,197
    
    
    
    1,721
    
    
    
    1,758
    
    
    
    3,311NET INCOME
    
    
    6,096
    
    
    
    3,542
    
    
    
    7,130
    
    
    
    6,259Net (loss) attributable to noncontrolling interest, net of tax
    
    
    
    
    
    
    (42
    )
    
    
    (98
    )
    
    
    (47
    )NET INCOME ATTRIBUTABLE TO PLPC
    
    $
    6,096
    
    
    $
    3,584
    
    
    $
    7,228
    
    
    $
    6,306BASIC EARNINGS PER SHARENet income attributable to PLPC common shareholders
    
    $
    1.16
    
    
    $
    0.69
    
    
    $
    1.38
    
    
    $
    1.21DILUTED EARNINGS PER SHARENet income attributable to PLPC common shareholders
    
    $
    1.13
    
    
    $
    0.68
    
    
    $
    1.34
    
    
    $
    1.19Cash dividends declared per share
    
    $
    0.20
    
    
    $
    0.20
    
    
    $
    0.40
    
    
    $
    0.40Weighted-average number of shares outstanding  basic
    
    
    5,253
    
    
    
    5,231
    
    
    
    5,253
    
    
    
    5,228Weighted-average number of shares outstanding  diluted
    
    
    5,402
    
    
    
    5,311
    
    
    
    5,401
    
    
    
    5,306
 See notes to consolidated financial statements (unaudited).
  4




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PREFORMED LINE PRODUCTS COMPANY
STATEMENTS OF CONSOLIDATED CASH FLOWS
(UNAUDITED)
 Six month periods ended June 302010
    
    
    2009(Thousands of dollars)OPERATING ACTIVITIESNet income
    
    $
    7,130
    
    
    $
    6,259Adjustments to reconcile net income to net cash provided by operations:Depreciation and amortization
    
    
    4,042
    
    
    
    3,404Provision for accounts receivable allowances
    
    
    277
    
    
    
    345Provision for inventory reserves
    
    
    737
    
    
    
    1,548Deferred income taxes
    
    
    (1,164
    )
    
    
    95Share-based compensation expense
    
    
    1,383
    
    
    
    669Excess tax benefits from share-based awards
    
    
    
    
    
    
    (75
    )Net investment in life insurance
    
    
    (26
    )
    
    
    (33
    )Unrealized foreign currency gain on hedge contract
    
    
    (451
    )
    
    
    Other  net
    
    
    (5
    )
    
    
    (9
    )Changes in operating assets and liabilities:Accounts receivable
    
    
    (3,586
    )
    
    
    (4,947
    )Inventories
    
    
    (2,113
    )
    
    
    431Trade accounts payables and accrued liabilities
    
    
    4,446
    
    
    
    3,154Income taxes payable
    
    
    (627
    )
    
    
    517Other  net
    
    
    (3,331
    )
    
    
    (144
    )NET CASH PROVIDED BY OPERATING ACTIVITIES
    
    
    6,712
    
    
    
    11,214INVESTING ACTIVITIESCapital expenditures
    
    
    (6,606
    )
    
    
    (4,198
    )Business acquisitions
    
    
    
    
    
    
    (433
    )Proceeds from the sale of discontinued operations
    
    
    
    
    
    
    750Proceeds from the sale of property and equipment
    
    
    225
    
    
    
    89NET CASH USED IN INVESTING ACTIVITIES
    
    
    (6,381
    )
    
    
    (3,792
    )FINANCING ACTIVITIESIncrease (decrease) in notes payable to banks
    
    
    (3
    )
    
    
    818Proceeds from the issuance of long-term debt
    
    
    11,946
    
    
    
    706Payments of long-term debt
    
    
    (11,471
    )
    
    
    (250
    )Dividends paid
    
    
    (2,167
    )
    
    
    (2,125
    )Excess tax benefits from share-based awards
    
    
    
    
    
    
    75Proceeds from issuance of common shares
    
    
    84
    
    
    
    188Purchase of common shares for treasury
    
    
    (21
    )
    
    
    (57
    )NET CASH USED IN FINANCING ACTIVITIES
    
    
    (1,632
    )
    
    
    (645
    )Effects of exchange rate changes on cash and cash equivalents
    
    
    (686
    )
    
    
    1,055Net increase (decrease) in cash and cash equivalents
    
    
    (1,987
    )
    
    
    7,832Cash and cash equivalents at beginning of year
    
    
    24,097
    
    
    
    19,869CASH AND CASH EQUIVALENTS AT END OF PERIOD
    
    $
    22,110
    
    
    $
    27,701
 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
 June 30
    
    
    December 312010
    
    
    2009Finished products
    
    $
    27,404
    
    
    $
    26,161Work-in-process
    
    
    4,365
    
    
    
    3,473Raw materials
    
    
    33,644
    
    
    
    34,78865,413
    
    
    
    64,422Excess of current cost over LIFO cost
    
    
    (5,108
    )
    
    
    (4,463
    )Noncurrent portion of inventory
    
    
    (3,174
    )
    
    
    (3,923
    )$
    57,131
    
    
    $
    56,036
   6




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##### Table of Contents



Property and equipment  net
  June 30
    
    
    December 312010
    
    
    2009Land and improvements
    
    $
    7,009
    
    
    $
    7,188Buildings and improvements
    
    
    51,772
    
    
    
    51,297Machinery and equipment
    
    
    106,566
    
    
    
    104,179Construction in progress
    
    
    5,734
    
    
    
    6,068171,081
    
    
    
    168,732Less accumulated depreciation
    
    
    102,777
    
    
    
    100,966$
    68,304
    
    
    $
    67,766
 Comprehensive income (loss)
  PLPC
    
    
    Noncontrolling interest
    
    
    TotalThree month period
    
    
    Three month period
    
    
    Three month periodended June 30
    
    
    ended June 30
    
    
    ended June 302010
    
    
    2009
    
    
    2010
    
    
    2009
    
    
    2010
    
    
    2009Net income (loss)
    
    $
    6,096
    
    
    $
    3,584
    
    
    $
    
    
    
    $
    (42
    )
    
    $
    6,096
    
    
    $
    3,542Other comprehensive income, net of tax:Change in unrealized gains on
available-for-sale securities, net of tax
    
    
    
    
    
    
    88
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    88Foreign currency translation adjustments
    
    
    (4,140
    )
    
    
    9,172
    
    
    
    41
    
    
    
    9
    
    
    
    (4,099
    )
    
    
    9,181Recognized net actuarial loss, net of tax
    
    
    30
    
    
    
    84
    
    
    
    
    
    
    
    
    
    
    
    30
    
    
    
    84Total other comprehensive income (loss), net of tax
    
    
    (4,110
    )
    
    
    9,344
    
    
    
    41
    
    
    
    9
    
    
    
    (4,069
    )
    
    
    9,353Comprehensive income (loss)
    
    $
    1,986
    
    
    $
    12,928
    
    
    $
    41
    
    
    $
    (33
    )
    
    $
    2,027
    
    
    $
    12,895
 PLPC
    
    
    Noncontrolling interest
    
    
    TotalSix month period
    
    
    Six month period
    
    
    Six month periodended June 30
    
    
    ended June 30
    
    
    ended June 302010
    
    
    2009
    
    
    2010
    
    
    2009
    
    
    2010
    
    
    2009Net income (loss)
    
    $
    7,228
    
    
    $
    6,306
    
    
    $
    (98
    )
    
    $
    (47
    )
    
    $
    7,130
    
    
    $
    6,259Other comprehensive income, net of tax:Change in unrealized losses on available-for-sale securities, net of tax
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Foreign currency translation adjustments
    
    
    (4,310
    )
    
    
    5,923
    
    
    
    25
    
    
    
    6
    
    
    
    (4,285
    )
    
    
    5,929Recognized net actuarial loss, net of tax
    
    
    88
    
    
    
    167
    
    
    
    
    
    
    
    
    
    
    
    88
    
    
    
    167Total other comprehensive income (loss), net of tax
    
    
    (4,222
    )
    
    
    6,090
    
    
    
    25
    
    
    
    6
    
    
    
    (4,197
    )
    
    
    6,096Comprehensive income (loss)
    
    $
    3,006
    
    
    $
    12,396
    
    
    $
    (73
    )
    
    $
    (41
    )
    
    $
    2,933
    
    
    $
    12,355
 Legal proceedings
   7




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##### Table of Contents



Three month period ended June 30
    
    
    Six month period ended June 302010
    
    
    2009
    
    
    2010
    
    
    2009Service cost
    
    $
    185
    
    
    $
    216
    
    
    $
    407
    
    
    $
    431Interest cost
    
    
    276
    
    
    
    292
    
    
    
    598
    
    
    
    584Expected return on plan
assets
    
    
    (240
    )
    
    
    (183
    )
    
    
    (480
    )
    
    
    (366
    )Recognized net actuarial loss
    
    
    49
    
    
    
    132
    
    
    
    140
    
    
    
    264Net periodic benefit cost
    
    $
    269
    
    
    $
    457
    
    
    $
    665
    
    
    $
    913
     For the three month period ended June 30
    
    
    For the six month period ended June 302010
    
    
    2009
    
    
    2010
    
    
    2009NumeratorNet income attributable to PLPC
    
    $
    6,096
    
    
    $
    3,584
    
    
    $
    7,228
    
    
    $
    6,306DenominatorDetermination of sharesWeighted average common shares outstanding
    
    
    5,253
    
    
    
    5,231
    
    
    
    5,253
    
    
    
    5,228Dilutive effect  share-based awards
    
    
    149
    
    
    
    80
    
    
    
    148
    
    
    
    78Diluted weighted average common shares outstanding
    
    
    5,402
    
    
    
    5,311
    
    
    
    5,401
    
    
    
    5,306Earnings per common share attributable to PLPC shareholdersBasic
    
    $
    1.16
    
    
    $
    0.69
    
    
    $
    1.38
    
    
    $
    1.21Diluted
    
    $
    1.13
    
    
    $
    0.68
    
    
    $
    1.34
    
    
    $
    1.19
   8




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##### Table of Contents



June 30, 2010
    
    
    December 31, 2009Gross Carrying
    
    
    Accumulated
    
    
    Gross Carrying
    
    
    AccumulatedAmount
    
    
    Amortization
    
    
    Amount
    
    
    AmortizationFinite-lived intangible assetsPatents
    
    $
    4,826
    
    
    $
    (3,370
    )
    
    $
    4,827
    
    
    $
    (3,213
    )Land use rights
    
    
    1,227
    
    
    
    (62
    )
    
    
    1,365
    
    
    
    (55
    )Trademark
    
    
    313
    
    
    
    (43
    )
    
    
    311
    
    
    
    Customer relationships
    
    
    5,359
    
    
    
    (749
    )
    
    
    5,372
    
    
    
    (520
    )$
    11,725
    
    
    $
    (4,224
    )
    
    $
    11,875
    
    
    $
    (3,788
    )Indefinite-lived intangible assetsGoodwill
    
    $
    6,654
    
    
    
    
    
    
    $
    6,925
    Australia
    
    
    South Africa
    
    
    Poland
    
    
    All Other
    
    
    TotalBalance at January 1, 2010
    
    $
    2,243
    
    
    $
    52
    
    
    $
    1,161
    
    
    $
    3,469
    
    
    $
    6,925Currency translation
    
    
    (92
    )
    
    
    (2
    )
    
    
    (178
    )
    
    
    1
    
    
    
    (271
    )Balance at June 30, 2010
    
    $
    2,151
    
    
    $
    50
    
    
    $
    983
    
    
    $
    3,470
    
    
    $
    6,654
  The 1999 Stock Option Plan
    9




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##### Table of Contents



WeightedWeighted
    
    
    AverageAverage
    
    
    Remaining
    
    
    AggregateNumber of
    
    
    Exercise Price
    
    
    Contractual
    
    
    IntrinsicShares
    
    
    per Share
    
    
    Term (Years)
    
    
    ValueOutstanding at January 1, 2010
    
    
    85,502
    
    
    $
    33.29Granted
    
    
    
    
    
    $
    0.00Exercised
    
    
    (4,696
    )
    
    $
    15.13Forfeited
    
    
    
    
    
    $
    0.00Outstanding (vested and expected
to vest) at June 30, 2010
    
    
    80,806
    
    
    $
    34.34
    
    
    
    5.8
    
    
    $
    226Exercisable at June 30, 2010
    
    
    69,056
    
    
    $
    32.94
    
    
    
    5.1
    
    
    $
    226
   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 June 30, 2010
    
    
    182,319
    
    
    
    19,778
    
    
    
    202,097
    
    
    $
    37.35
     Share Option Awards
     11




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##### Table of Contents



WeightedWeighted
    
    
    AverageAverage
    
    
    Remaining
    
    
    AggregateNumber of
    
    
    Exercise Price
    
    
    Contractual
    
    
    IntrinsicShares
    
    
    per Share
    
    
    Term (Years)
    
    
    ValueOutstanding at January 1, 2010
    
    
    11,000
    
    
    $
    38.76Granted
    
    
    
    
    
    $
    0.00Exercised
    
    
    
    
    
    $
    0.00Forfeited
    
    
    
    
    
    $
    0.00Outstanding (vested and expected
to vest) at June 30, 2010
    
    
    11,000
    
    
    $
    38.76
    
    
    
    9.5
    
    
    $
    0Exercisable at June 30, 2010
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
     June 30, 2010
    
    
    December 31, 2009Fair Value
    
    
    Carrying Value
    
    
    Fair Value
    
    
    Carrying ValueLong-term debt and
related current
maturities
    
    $
    4,724
    
    
    $
    4,784
    
    
    $
    4,617
    
    
    $
    4,429
     12




---



##### Table of Contents



Asset DerivativeFair Value at June 30,Derivative Not Designated as Hedging Instrument
    
    Balance Sheet Classification
    
    2010
    
    
    2009Foreign exchange forward contracts
    
    Other current assets
    
    $
    451.0
    
    
    $
    
  Amount of Gain (Loss)Location of Gain or (loss)
    
    Recognized in EarningsRecognized in Income on
    
    On Derivative at June 30,Derivative not Desigated as Hedging Instruments
    
    Derivative
    
    2010
    
    
    2009Foreign exchange forward contracts
    
    Other income (expense)
    
    $
    451.0
    
    
    $
    
       13




---



##### Table of Contents



Three month period ended June 30
    
    
    Six month period ended June 302010
    
    
    2009
    
    
    2010
    
    
    2009Net salesPLP-USA
    
    $
    30,666
    
    
    $
    26,028
    
    
    $
    57,147
    
    
    $
    54,699Australia
    
    
    13,287
    
    
    
    6,260
    
    
    
    24,178
    
    
    
    11,942Brazil
    
    
    7,637
    
    
    
    5,690
    
    
    
    16,264
    
    
    
    10,882South Africa
    
    
    2,969
    
    
    
    2,293
    
    
    
    5,780
    
    
    
    4,147Canada
    
    
    3,026
    
    
    
    3,200
    
    
    
    5,614
    
    
    
    5,555Poland
    
    
    4,090
    
    
    
    2,737
    
    
    
    7,403
    
    
    
    5,695All Other
    
    
    20,462
    
    
    
    13,360
    
    
    
    34,659
    
    
    
    25,342Total net sales
    
    $
    82,137
    
    
    $
    59,568
    
    
    $
    151,045
    
    
    $
    118,262Intersegment salesPLP-USA
    
    $
    2,205
    
    
    $
    1,545
    
    
    $
    3,327
    
    
    $
    3,075Australia
    
    
    157
    
    
    
    19
    
    
    
    208
    
    
    
    34Brazil
    
    
    212
    
    
    
    230
    
    
    
    1,082
    
    
    
    970South Africa
    
    
    122
    
    
    
    192
    
    
    
    230
    
    
    
    204Canada
    
    
    224
    
    
    
    80
    
    
    
    394
    
    
    
    116Poland
    
    
    137
    
    
    
    306
    
    
    
    311
    
    
    
    744All Other
    
    
    6,662
    
    
    
    2,771
    
    
    
    11,109
    
    
    
    5,230Total intersegment sales
    
    $
    9,719
    
    
    $
    5,143
    
    
    $
    16,661
    
    
    $
    10,373
  14




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##### Table of Contents



Three month period ended June 30
    
    
    Six month period ended June 302010
    
    
    2009
    
    
    2010
    
    
    2009Income taxes (benefit)PLP-USA
    
    $
    (40
    )
    
    $
    1,218
    
    
    $
    (468
    )
    
    $
    2,139Australia
    
    
    342
    
    
    
    21
    
    
    
    597
    
    
    
    49Brazil
    
    
    (323
    )
    
    
    31
    
    
    
    (75
    )
    
    
    89South Africa
    
    
    250
    
    
    
    116
    
    
    
    438
    
    
    
    236Canada
    
    
    219
    
    
    
    277
    
    
    
    370
    
    
    
    422Poland
    
    
    111
    
    
    
    32
    
    
    
    149
    
    
    
    138All Other
    
    
    638
    
    
    
    26
    
    
    
    747
    
    
    
    238Total income taxes
    
    $
    1,197
    
    
    $
    1,721
    
    
    $
    1,758
    
    
    $
    3,311Net incomePLP-USA
    
    $
    1,834
    
    
    $
    1,094
    
    
    $
    805
    
    
    $
    2,250Australia
    
    
    560
    
    
    
    62
    
    
    
    1,018
    
    
    
    112Brazil
    
    
    702
    
    
    
    51
    
    
    
    1,167
    
    
    
    145South Africa
    
    
    642
    
    
    
    304
    
    
    
    1,125
    
    
    
    611Canada
    
    
    489
    
    
    
    616
    
    
    
    825
    
    
    
    938Poland
    
    
    424
    
    
    
    123
    
    
    
    556
    
    
    
    548All Other
    
    
    1,445
    
    
    
    1,292
    
    
    
    1,634
    
    
    
    1,655Total net income
    
    
    6,096
    
    
    
    3,542
    
    
    
    7,130
    
    
    
    6,259Loss attributable to noncontrolling
interest, net of tax
    
    
    
    
    
    
    (42
    )
    
    
    (98
    )
    
    
    (47
    )Net income attributable to PLPC
    
    $
    6,096
    
    
    $
    3,584
    
    
    $
    7,228
    
    
    $
    6,306
 June 30
    
    
    December 312010
    
    
    2009AssetsPLP-USA
    
    $
    69,250
    
    
    $
    65,266Australia
    
    
    34,353
    
    
    
    31,269Brazil
    
    
    24,608
    
    
    
    25,194South Africa
    
    
    8,567
    
    
    
    7,081Canada
    
    
    9,661
    
    
    
    9,006Poland
    
    
    12,914
    
    
    
    14,777All Other
    
    
    80,354
    
    
    
    82,330239,707
    
    
    
    234,923Corporate assets
    
    
    369
    
    
    
    449Total assets
    
    $
    240,076
    
    
    $
    235,372
        15




---



##### Table of Contents



ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
         16




---



##### Table of Contents



Preface
      17




---



##### Table of Contents



Three month period ended June 30Thousands of dollars
    
    2010
    
    
    2009
    
    
    Change
    
    
    % ChangeNet sales
    
    $
    82,137
    
    
    $
    59,568
    
    
    $
    22,569
    
    
    
    38
    %Cost of products sold
    
    
    54,682
    
    
    
    39,718
    
    
    
    14,964
    
    
    
    38Gross profit
    
    
    27,455
    
    
    
    19,850
    
    
    
    7,605
    
    
    
    38Gross profit as percentage of net sales
    
    
    33
    %
    
    
    33
    %Costs and expenses
    
    
    20,539
    
    
    
    14,745
    
    
    
    5,794
    
    
    
    39Costs and expenses as percentage of net sales
    
    
    25
    %
    
    
    25
    %Operating income
    
    
    6,916
    
    
    
    5,105
    
    
    
    1,811
    
    
    
    35Other income
    
    
    377
    
    
    
    158
    
    
    
    219
    
    
    
    139Income before income taxes
    
    
    7,293
    
    
    
    5,263
    
    
    
    2,030
    
    
    
    39Income before income taxes as percentage of net sales
    
    
    9
    %
    
    
    9
    %Income taxes
    
    
    1,197
    
    
    
    1,721
    
    
    
    (524
    )
    
    
    (30
    )Net income
    
    $
    6,096
    
    
    $
    3,542
    
    
    $
    2,554
    
    
    
    72
    %
 Net Sales.
 Three month period ended June 30Change
    
    
    Changedue to
    
    
    excludingcurrency
    
    
    currency
    
    
    %thousands of dollars
    
    2010
    
    
    2009
    
    
    Change
    
    
    translation
    
    
    tranlation
    
    
    changeNet salesPLP-USA
    
    $
    30,666
    
    
    $
    26,028
    
    
    $
    4,638
    
    
    $
    
    
    
    $
    4,638
    
    
    
    18
    %Australia
    
    
    13,287
    
    
    
    6,260
    
    
    
    7,027
    
    
    
    1,933
    
    
    
    5,094
    
    
    
    81Brazil
    
    
    7,637
    
    
    
    5,690
    
    
    
    1,947
    
    
    
    1,043
    
    
    
    904
    
    
    
    16South Africa
    
    
    2,969
    
    
    
    2,293
    
    
    
    676
    
    
    
    329
    
    
    
    347
    
    
    
    15Canada
    
    
    3,026
    
    
    
    3,200
    
    
    
    (174
    )
    
    
    363
    
    
    
    (537
    )
    
    
    (17
    )Poland
    
    
    4,090
    
    
    
    2,737
    
    
    
    1,353
    
    
    
    201
    
    
    
    1,152
    
    
    
    42All Other
    
    
    20,462
    
    
    
    13,360
    
    
    
    7,102
    
    
    
    (208
    )
    
    
    7,310
    
    
    
    55Consolidated
    
    $
    82,137
    
    
    $
    59,568
    
    
    $
    22,569
    
    
    $
    3,661
    
    
    $
    18,908
    
    
    
    32
    %
   18




---



##### Table of Contents



Gross profit.
 Three month period ended June 30Change
    
    
    Changedue to
    
    
    excludingcurrency
    
    
    currency
    
    
    %thousands of dollars
    
    2010
    
    
    2009
    
    
    Change
    
    
    translation
    
    
    translation
    
    
    changeGross profitPLP-USA
    
    $
    9,729
    
    
    $
    8,808
    
    
    $
    921
    
    
    $
    
    
    
    $
    921
    
    
    
    10
    %Australia
    
    
    4,416
    
    
    
    1,694
    
    
    
    2,722
    
    
    
    661
    
    
    
    2,061
    
    
    
    122Brazil
    
    
    2,048
    
    
    
    1,302
    
    
    
    746
    
    
    
    269
    
    
    
    477
    
    
    
    37South Africa
    
    
    1,461
    
    
    
    901
    
    
    
    560
    
    
    
    162
    
    
    
    398
    
    
    
    44Canada
    
    
    1,357
    
    
    
    1,435
    
    
    
    (78
    )
    
    
    161
    
    
    
    (239
    )
    
    
    (17
    )Poland
    
    
    1,304
    
    
    
    800
    
    
    
    504
    
    
    
    58
    
    
    
    446
    
    
    
    56All Other
    
    
    7,140
    
    
    
    4,910
    
    
    
    2,230
    
    
    
    (38
    )
    
    
    2,268
    
    
    
    46Consolidated
    
    $
    27,455
    
    
    $
    19,850
    
    
    $
    7,605
    
    
    $
    1,273
    
    
    $
    6,332
    
    
    
    32
    %
   19




---



##### Table of Contents



Costs and expenses
 Three month period ended June 30Change
    
    
    Changedue to
    
    
    excludingcurrency
    
    
    currency
    
    
    %thousands of dollars
    
    2010
    
    
    2009
    
    
    Change
    
    
    translation
    
    
    translation
    
    
    changeCosts and expensesPLP-USA
    
    $
    10,149
    
    
    $
    7,753
    
    
    $
    2,396
    
    
    $
    
    
    
    $
    2,396
    
    
    
    31
    %Australia
    
    
    2,525
    
    
    
    1,293
    
    
    
    1,232
    
    
    
    392
    
    
    
    840
    
    
    
    65Brazil
    
    
    1,604
    
    
    
    1,217
    
    
    
    387
    
    
    
    216
    
    
    
    171
    
    
    
    14South Africa
    
    
    481
    
    
    
    417
    
    
    
    64
    
    
    
    51
    
    
    
    13
    
    
    
    3Canada
    
    
    505
    
    
    
    388
    
    
    
    117
    
    
    
    60
    
    
    
    57
    
    
    
    15Poland
    
    
    745
    
    
    
    650
    
    
    
    95
    
    
    
    26
    
    
    
    69
    
    
    
    11All Other
    
    
    4,530
    
    
    
    3,027
    
    
    
    1,503
    
    
    
    (9
    )
    
    
    1,512
    
    
    
    50Consolidated
    
    $
    20,539
    
    
    $
    14,745
    
    
    $
    5,794
    
    
    $
    736
    
    
    $
    5,058
    
    
    
    34
    %
  Other income.
 Income taxes.
  20




---



##### Table of Contents



Net income
 Three month period ended June 30Change
    
    
    Changedue to
    
    
    excludingcurrency
    
    
    currency
    
    
    %thousands of dollars
    
    2010
    
    
    2009
    
    
    Change
    
    
    translation
    
    
    translation
    
    
    changeNet incomePLP-USA
    
    $
    1,834
    
    
    $
    1,094
    
    
    $
    740
    
    
    $
    
    
    
    $
    740
    
    
    
    68
    %Australia
    
    
    560
    
    
    
    62
    
    
    
    498
    
    
    
    69
    
    
    
    429
    
    
    
    692Brazil
    
    
    702
    
    
    
    51
    
    
    
    651
    
    
    
    68
    
    
    
    583
    
    
    
    1,143South Africa
    
    
    642
    
    
    
    304
    
    
    
    338
    
    
    
    71
    
    
    
    267
    
    
    
    88Canada
    
    
    489
    
    
    
    616
    
    
    
    (127
    )
    
    
    58
    
    
    
    (185
    )
    
    
    (30
    )Poland
    
    
    424
    
    
    
    123
    
    
    
    301
    
    
    
    24
    
    
    
    277
    
    
    
    225All Other
    
    
    1,445
    
    
    
    1,292
    
    
    
    153
    
    
    
    (45
    )
    
    
    198
    
    
    
    15Consolidated
    
    $
    6,096
    
    
    $
    3,542
    
    
    $
    2,554
    
    
    $
    245
    
    
    $
    2,309
    
    
    
    65
    %
    Six month period ended June 30Thousands of dollars
    
    2010
    
    
    2009
    
    
    Change
    
    
    % ChangeNet sales
    
    $
    151,045
    
    
    $
    118,262
    
    
    $
    32,783
    
    
    
    28
    %Cost of products sold
    
    
    103,565
    
    
    
    79,834
    
    
    
    23,731
    
    
    
    30Gross profit
    
    
    47,480
    
    
    
    38,428
    
    
    
    9,052
    
    
    
    24Gross profit as percentage of net sales
    
    
    31
    %
    
    
    32
    %Costs and expenses
    
    
    39,233
    
    
    
    29,511
    
    
    
    9,722
    
    
    
    33Costs and expenses as percentage of net sales
    
    
    26
    %
    
    
    25
    %Operating income
    
    
    8,247
    
    
    
    8,917
    
    
    
    (670
    )
    
    
    (8
    )Other income
    
    
    641
    
    
    
    653
    
    
    
    (12
    )
    
    
    (2
    )Income before income taxes
    
    
    8,888
    
    
    
    9,570
    
    
    
    (682
    )
    
    
    (7
    )Income before income taxes as percentage of net sales
    
    
    6
    %
    
    
    8
    %Income taxes
    
    
    1,758
    
    
    
    3,311
    
    
    
    (1,553
    )
    
    
    (47
    )Net income
    
    $
    7,130
    
    
    $
    6,259
    
    
    $
    871
    
    
    
    14
    %
  21




---



##### Table of Contents



Net Sales
 Six month period ended June 30Change
    
    
    Changedue to
    
    
    excludingcurrency
    
    
    currency
    
    
    %thousands of dollars
    
    2010
    
    
    2009
    
    
    Change
    
    
    translation
    
    
    tranlation
    
    
    changeNet salesPLP-USA
    
    $
    57,147
    
    
    $
    54,699
    
    
    $
    2,448
    
    
    $
    
    
    
    $
    2,448
    
    
    
    4
    %Australia
    
    
    24,178
    
    
    
    11,942
    
    
    
    12,236
    
    
    
    4,828
    
    
    
    7,408
    
    
    
    62Brazil
    
    
    16,264
    
    
    
    10,882
    
    
    
    5,382
    
    
    
    2,944
    
    
    
    2,438
    
    
    
    22South Africa
    
    
    5,780
    
    
    
    4,147
    
    
    
    1,633
    
    
    
    1,007
    
    
    
    626
    
    
    
    15Canada
    
    
    5,614
    
    
    
    5,555
    
    
    
    59
    
    
    
    782
    
    
    
    (723
    )
    
    
    (13
    )Poland
    
    
    7,403
    
    
    
    5,695
    
    
    
    1,708
    
    
    
    750
    
    
    
    958
    
    
    
    17All Other
    
    
    34,659
    
    
    
    25,342
    
    
    
    9,317
    
    
    
    286
    
    
    
    9,031
    
    
    
    36Consolidated
    
    $
    151,045
    
    
    $
    118,262
    
    
    $
    32,783
    
    
    $
    10,597
    
    
    $
    22,186
    
    
    
    19
    %
  Gross profit.
 Six month period ended June 30Change
    
    
    Changedue to
    
    
    excludingcurrency
    
    
    currency
    
    
    %thousands of dollars
    
    2010
    
    
    2009
    
    
    Change
    
    
    translation
    
    
    translation
    
    
    changeGross profitPLP-USA
    
    $
    16,321
    
    
    $
    18,128
    
    
    $
    (1,807
    )
    
    $
    
    
    
    $
    (1,807
    )
    
    
    (10
    )%Australia
    
    
    8,093
    
    
    
    3,247
    
    
    
    4,846
    
    
    
    1,642
    
    
    
    3,204
    
    
    
    99Brazil
    
    
    4,453
    
    
    
    2,739
    
    
    
    1,714
    
    
    
    789
    
    
    
    925
    
    
    
    34South Africa
    
    
    2,745
    
    
    
    1,644
    
    
    
    1,101
    
    
    
    471
    
    
    
    630
    
    
    
    38Canada
    
    
    2,441
    
    
    
    2,402
    
    
    
    39
    
    
    
    340
    
    
    
    (301
    )
    
    
    (13
    )Poland
    
    
    2,214
    
    
    
    1,741
    
    
    
    473
    
    
    
    211
    
    
    
    262
    
    
    
    15All Other
    
    
    11,213
    
    
    
    8,527
    
    
    
    2,686
    
    
    
    128
    
    
    
    2,558
    
    
    
    30Consolidated
    
    $
    47,480
    
    
    $
    38,428
    
    
    $
    9,052
    
    
    $
    3,581
    
    
    $
    5,471
    
    
    
    14
    %
  22




---



##### Table of Contents



Costs and expenses
 Six month period ended June 30Change
    
    
    Changedue to
    
    
    excludingcurrency
    
    
    currency
    
    
    %thousands of dollars
    
    2010
    
    
    2009
    
    
    Change
    
    
    translation
    
    
    translation
    
    
    changeCosts and expensesPLP-USA
    
    $
    19,768
    
    
    $
    16,385
    
    
    $
    3,383
    
    
    $
    
    
    
    $
    3,383
    
    
    
    21
    %Australia
    
    
    4,875
    
    
    
    2,526
    
    
    
    2,349
    
    
    
    975
    
    
    
    1,374
    
    
    
    54Brazil
    
    
    3,228
    
    
    
    2,453
    
    
    
    775
    
    
    
    611
    
    
    
    164
    
    
    
    7South Africa
    
    
    997
    
    
    
    691
    
    
    
    306
    
    
    
    150
    
    
    
    156
    
    
    
    23Canada
    
    
    977
    
    
    
    781
    
    
    
    196
    
    
    
    137
    
    
    
    59
    
    
    
    8Poland
    
    
    1,470
    
    
    
    1,061
    
    
    
    409
    
    
    
    144
    
    
    
    265
    
    
    
    25All Other
    
    
    7,918
    
    
    
    5,614
    
    
    
    2,304
    
    
    
    151
    
    
    
    2,153
    
    
    
    38Consolidated
    
    $
    39,233
    
    
    $
    29,511
    
    
    $
    9,722
    
    
    $
    2,168
    
    
    $
    7,554
    
    
    
    26
    %
   23




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##### Table of Contents



Other income.
 Income taxes
 Net income
 Six month period ended June 30Change
    
    
    Changedue to
    
    
    excludingcurrency
    
    
    currency
    
    
    %thousands of dollars
    
    2010
    
    
    2009
    
    
    Change
    
    
    translation
    
    
    translation
    
    
    changeNet incomePLP-USA
    
    $
    805
    
    
    $
    2,250
    
    
    $
    (1,445
    )
    
    $
    
    
    
    $
    (1,445
    )
    
    
    (64
    )%Australia
    
    
    1,018
    
    
    
    112
    
    
    
    906
    
    
    
    260
    
    
    
    646
    
    
    
    577Brazil
    
    
    1,167
    
    
    
    145
    
    
    
    1,022
    
    
    
    126
    
    
    
    896
    
    
    
    618South Africa
    
    
    1,125
    
    
    
    611
    
    
    
    514
    
    
    
    184
    
    
    
    330
    
    
    
    54Canada
    
    
    825
    
    
    
    938
    
    
    
    (113
    )
    
    
    114
    
    
    
    (227
    )
    
    
    (24
    )Poland
    
    
    556
    
    
    
    548
    
    
    
    8
    
    
    
    50
    
    
    
    (42
    )
    
    
    (8
    )All Other
    
    
    1,634
    
    
    
    1,655
    
    
    
    (21
    )
    
    
    (135
    )
    
    
    114
    
    
    
    7Consolidated
    
    $
    7,130
    
    
    $
    6,259
    
    
    $
    871
    
    
    $
    599
    
    
    $
    272
    
    
    
    4
    %
     24




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##### Table of Contents



25




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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
   26




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##### Table of Contents



ITEM 1A. RISK FACTORS
  
 ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
  Total 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 ProgramsApril
    
    
    
    
    
    
    
    
    
    
    188,748
    
    
    
    11,252May
    
    
    
    
    
    
    
    
    
    
    188,748
    
    
    
    11,252June
    
    
    
    
    
    
    
    
    
    
    188,748
    
    
    
    11,252Total
    
    
    
 
 ITEM 3. DEFAULTS UPON SENIOR SECURITIES
  
 ITEM 4. (Removed and Reserved)
  
 ITEM 5. OTHER INFORMATION
  
 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.
 
  27




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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;
  28




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##### Table of Contents




    
    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;
 
    
    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.
  29




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##### Table of Contents



SIGNATURES
  August 5, 2010
    /s/  Robert G. RuhlmanRobert G. RuhlmanChairman, President and Chief Executive Officer
(Principal Executive Officer)August 5, 2010
    /s/ Eric R. GraefEric R. GraefChief Financial Officer and Vice President  Finance
(Principal Accounting Officer) 
  30




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##### Table of Contents



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.
  31