Preformed Line Products Company reported net sales of $147.0 million for the third quarter of 2024, an 8% decrease compared to $160.4 million in the third quarter of 2023. Net income for the quarter was $7.7 million, or $1.54 per diluted share, down from $15.1 million, or $3.03 per diluted share, in the comparable prior-year period. Gross profit as a percentage of net sales was 31.2% for the third quarter of 2024.
The decline in sales was primarily attributed to a continuation of the slowdown in spending within the communications end market and ongoing customer inventory destocking. For the first nine months of 2024, net sales decreased 19% to $426.6 million compared to $524.1 million in the same period of 2023, with net income falling to $26.6 million from $57.0 million.
Executive Chairman Rob Ruhlman stated that the slower pace of the net sales decline and an increase in order backlog indicate the company may be nearing the final stages of inventory destocking. He also noted that gross margin percentage remained consistent throughout 2024, aided by cost reduction activities implemented in 2023.
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