Preformed Line Products Company (PLP) reported a net sales figure of $593.7 million for the fiscal year ending December 31, 2024, reflecting a decrease of $76.0 million, or 11%, compared to the previous year. The decline was primarily attributed to inventory destocking in the U.S. markets, which impacted sales volumes in both the communications and energy product segments. Gross profit also fell to $189.8 million, down 19% from $234.8 million in 2023, with gross margins decreasing from 35.1% to 32.0%. The company's net income for 2024 was $37.1 million, a significant drop from $63.3 million in 2023, marking a 40% decrease.
In terms of operational changes, PLP's international segments showed resilience, with sales figures remaining comparable to the prior year despite the overall decline in consolidated sales. The Americas segment saw an 11% increase in net sales, driven by higher energy product volumes, while the Asia-Pacific segment reported a 6% increase. The company also focused on cost containment, reducing total costs and expenses by approximately 8% year-over-year, which contributed to a decrease in operating expenses from $150.7 million in 2023 to $139.1 million in 2024.
Strategically, PLP continued to enhance its product offerings and operational capabilities through acquisitions, including the purchase of Pilot Plastics in February 2023, which expanded its injection molding capabilities. The company also maintained a strong focus on research and development, investing in new technologies and product lines to meet evolving market demands. As of December 31, 2024, PLP employed 3,401 individuals, with a significant portion of its workforce based in the U.S.
Looking ahead, PLP's management expressed cautious optimism regarding future performance, emphasizing the importance of adapting to market conditions and customer needs. The company noted that while inflationary pressures had subsided, ongoing economic uncertainties could impact demand and pricing strategies. PLP's backlog orders stood at approximately $191.0 million at the end of 2024, indicating a solid pipeline of future business. The company plans to leverage its global manufacturing network and continue investing in growth opportunities to enhance its market position in the energy and communications sectors.
About PREFORMED LINE PRODUCTS CO
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