Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The number of common shares outstanding as of ~~April~~July 26, 2021: ~~4,912,959.~~4,906,559.

	March 31, 2021			December 31, 2020			June 30, 2021			December 31, 2020
(Thousands of dollars, except share and per share data)	(Unaudited)						(Unaudited)
ASSETS
Cash and cash equivalents	$	34,685		$	45,175		$	33,454		$	45,175
Accounts receivable, less allowances of $3,436 ($3,464 in 2020)		93,654			92,686
Accounts receivable, less allowances of $3,605 ($3,464 in 2020)								104,674			92,686
Inventories - net		99,694			97,537			105,428			97,537
Prepaids		7,642			15,289			10,169			15,289
Prepaid taxes		1,080			2,371			1,728			2,371
Other current assets		3,283			3,256			3,149			3,256
TOTAL CURRENT ASSETS		240,038			256,314			258,602			256,314
Property, plant and equipment - net		145,400			125,965			148,511			125,965
Operating lease, right-of-use assets		12,426			13,139			13,414			13,139
Intangibles - net		13,811			14,443			13,655			14,443
Goodwill		28,844			29,508			29,316			29,508
Deferred income taxes		5,459			10,863			9,191			10,863
Other assets		11,025			10,855			10,720			10,855
TOTAL ASSETS	$	457,003		$	461,087		$	483,409		$	461,087
LIABILITIES AND SHAREHOLDERS’ EQUITY
Trade accounts payable	$	33,945		$	31,646		$	38,737		$	31,646
Notes payable to banks		12,853			17,428			14,661			17,428
Operating lease liabilities, current		2,083			2,240			2,108			2,240
Current portion of long-term debt		9,033			5,216			6,717			5,216
Accrued compensation and amounts withheld from employees		16,823			14,736			19,950			14,736
Accrued expenses and other liabilities		18,001			17,508			18,412			17,508
Accrued profit-sharing and other benefits		3,104			8,252			5,022			8,252
Dividends payable		1,183			1,292			1,222			1,292
Income taxes payable		648			5,456			617			5,456
TOTAL CURRENT LIABILITIES		97,673			103,774			107,446			103,774
Long-term debt, less current portion		37,394			33,333			42,066			33,333
Unfunded pension obligation		5,522			5,826			5,218			5,826
Operating lease liabilities, non-current		8,190			8,743			9,202			8,743
Deferred income taxes		2,802			2,921			2,817			2,921
Other noncurrent liabilities		14,284			14,421			13,017			14,421
SHAREHOLDERS’ EQUITY
Shareholders’ equity:
Common shares - $2 par value per share, 15,000,000 shares authorized, 4,912,959 and 4,902,233 issued and outstanding, at March 31, 2021 and December 31, 2020, respectively		13,155			13,028
Common shares issued to rabbi trust, 261,781 and 265,508 shares at March 31, 2021 and December 31, 2020, respectively		(10,820	)		(10,940	)
Common shares - $2 par value per share, 15,000,000 shares authorized, 4,906,559 and 4,902,233 issued and outstanding, at June 30, 2021 and December 31, 2020, respectively								13,170			13,028
Common shares issued to rabbi trust, 262,181 and 265,508 shares at June 30, 2021 and December 31, 2020, respectively								(10,850	)		(10,940	)
Deferred compensation liability		10,820			10,940			10,850			10,940
Paid-in capital		44,322			43,134			45,564			43,134
Retained earnings		385,184			379,035			393,032			379,035
Treasury shares, at cost, 1,664,517 and 1,611,927 shares at March 31, 2021 and December 31, 2020, respectively		(92,246	)		(88,568	)
Treasury shares, at cost, 1,678,317 and 1,611,927 shares at June 30, 2021 and December 31, 2020, respectively								(93,292	)		(88,568	)
Accumulated other comprehensive loss		(59,266	)		(54,551	)		(54,842	)		(54,551	)
TOTAL PREFORMED LINE PRODUCTS, COMPANY SHAREHOLDERS’ EQUITY		291,149			292,078			303,632			292,078
Noncontrolling interest		(11	)		(9	)		11			(9	)
TOTAL SHAREHOLDERS’ EQUITY		291,138			292,069			303,643			292,069
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	457,003		$	461,087		$	483,409		$	461,087

	Three Months Ended March 31						Three Months Ended June 30						Six Months Ended June 30
	2021			2020			2021			2020			2021			2020
(Amounts in thousands of dollars, except earnings per share data)
Net sales	$	117,553		$	102,852		$	133,038		$	117,629		$	250,591		$	220,481
Cost of products sold		77,361			69,942			89,999			78,063			167,360			148,005
GROSS PROFIT		40,192			32,910			43,039			39,566			83,231			72,476
Costs and expenses
Selling		9,601			8,905			10,099			8,439			19,701			17,344
General and administrative		14,394			13,434			13,770			12,432			28,164			25,865
Research and engineering		4,611			4,296			4,763			4,113			9,374			8,408
Other operating expense - net		818			1,122			1,669			(225	)		2,486			1,408
		29,424			27,757			30,301			24,759			59,725			53,025
OPERATING INCOME		10,768			5,153			12,738			14,807			23,506			19,451
Other income (expense)
Interest income		21			111			26			79			47			190
Interest expense		(463	)		(709	)		(457	)		(719	)		(920	)		(1,428	)
Other income - net		228			549
Other income (expense) - net								270			(282	)		498			776
		(214	)		(49	)		(161	)		(922	)		(375	)		(462	)
INCOME BEFORE INCOME TAXES		10,554			5,104			12,577			13,885			23,131			18,989
Income tax expense		3,377			1,451			3,686			3,397			7,063			4,848
NET INCOME	$	7,177		$	3,653		$	8,891		$	10,488		$	16,068		$	14,141
Net loss attributable to noncontrolling interests		2			45			(22	)		(7	)		(20	)		38
NET INCOME ATTRIBUTABLE TO PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS	$	7,179		$	3,698		$	8,869		$	10,481		$	16,048		$	14,179
AVERAGE NUMBER OF SHARES OF COMMON STOCK OUTSTANDING:
Basic		4,917			5,008			4,912			4,966			4,914			4,987
Diluted		4,936			5,017			4,930			4,973			4,935			4,994
EARNINGS PER SHARE OF COMMON STOCK ATTRIBUTABLE TO PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS:
Basic	$	1.46		$	0.74		$	1.81		$	2.11		$	3.27		$	2.84
Diluted	$	1.45		$	0.74		$	1.80		$	2.11		$	3.25		$	2.84

	Three Months Ended March 31						Three Months Ended June 30						Six Months Ended June 30
	2021			2020			2021			2020			2021			2020
(Thousands of dollars)
Net income	$	7,177		$	3,653		$	8,891		$	10,488		$	16,068		$	14,141
Other comprehensive income (loss), net of tax
Foreign currency translation adjustment		(4,829	)		(16,881	)		4,311			5,472			(518	)		(11,409	)
Recognized net actuarial gain (net of tax provision of $35 and $31 for the three months ended March 31, 2021 and 2020, respectively).		114			98
Other comprehensive loss, net of tax		(4,715	)		(16,783	)
Comprehensive loss attributable to noncontrolling interests		2			45
Comprehensive income (loss) attributable to Preformed Line Products Company shareholders	$	2,464		$	(13,085	)
Recognized net actuarial gain (net of tax provision of $35 and $39 for the three months ended June 30, 2021 and 2020, respectively). Recognized net actuarial gain (net of tax provision of $70 for both six-month periods ended June 30, 2021 and 2020).								113			91			227			189
Other comprehensive gain (loss), net of tax								4,424			5,563			(291	)		(11,220	)
Comprehensive (loss) gain attributable to noncontrolling interests								(22	)		(7	)		(20	)		38
Comprehensive income attributable to Preformed Line Products Company shareholders							$	13,293		$	16,044		$	15,757		$	2,959

	Three Months Ended March 31						Six Months Ended June 30
	2021			2020			2021			2020
(Thousands of dollars)
OPERATING ACTIVITIES
Net income	$	7,177		$	3,653		$	16,068		$	14,141
Adjustments to reconcile net income to net cash provided by (used in) operations:
Depreciation and amortization		3,145			3,357			6,832			6,661
Provision for accounts receivable allowances		390			424			1,046			678
Provision for inventory reserves		811			365			1,033			1,001
Deferred income taxes		4,921			1,163			1,575			677
Share-based compensation expense		1,034			976			1,927			1,588
Loss on sale of property and equipment		(16	)		0
Gain on sale of property and equipment								(30	)		0
Other - net		318			(364	)		318			(330	)
Changes in operating assets and liabilities
Accounts receivable		(3,114	)		(5,192	)		(13,446	)		(15,713	)
Inventories		(5,154	)		(3,481	)		(9,470	)		(4,780	)
Prepaid expenses		8,134			(1,409	)		5,758			(121	)
Trade accounts payable and accrued liabilities		795			(2,112	)		9,040			4,710
Income taxes - net		(4,782	)		(328	)		(4,815	)		95
Other - net		(423	)		(107	)		(1,775	)		577
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES		13,236			(3,055	)
NET CASH PROVIDED BY OPERATING ACTIVITIES								14,061			9,184
INVESTING ACTIVITIES ⁽¹⁾
Capital expenditures		(3,469	)		(5,997	)		(7,338	)		(11,820	)
Proceeds from the sale of property and equipment		4			0			23			0
NET CASH USED IN INVESTING ACTIVITIES		(3,465	)		(5,997	)		(7,315	)		(11,820	)
FINANCING ACTIVITIES⁽¹⁾
(Decrease) increase in notes payable to banks		(3,811	)		3,337			(2,183	)		5,148
Proceeds from long-term debt		15,242			24,945			42,954			41,163
Payments of long-term debt		(27,106	)		(17,652	)		(53,029	)		(36,717	)
Dividends paid		(1,131	)		(1,175	)		(2,114	)		(2,173	)
Proceeds from issuance of common shares		0			236			364			266
Purchase of common shares for treasury		0			(1,602	)		(176	)		(4,613	)
Purchase of common shares for treasury from related parties		(3,678	)		(2,378	)		(4,548	)		(2,378	)
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES		(20,484	)		5,711			(18,732	)		696
Effects of exchange rate changes on cash and cash equivalents		223			(1,805	)		265			(817	)
Net decrease in cash, cash equivalents and restricted cash		(10,490	)		(5,146	)		(11,721	)		(2,757	)
Cash, cash equivalents and restricted cash at beginning of year		45,175			39,263			45,175			39,263
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD	$	34,685		$	34,117		$	33,454		$	36,506

(1) Non-cash investing and financing activities: The Company purchased a new corporate aircraft during ~~the~~six-month period ended ~~March 31,~~June 30, 2021 with a term loan in the principal amount of $20.5 million. For further information regarding this transaction, refer to Note P, “Debt Arrangements.”

The accompanying unaudited consolidated financial statements of Preformed Line Products Company and subsidiaries (the “Company” or “PLPC”) have been prepared in accordance with United States of America (U.S.) generally accepted accounting principles (GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X.

The preparation of these consolidated financial statements requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and the accompanying notes. Actual results could differ from these estimates. In the opinion of management, these consolidated financial statements contain all estimates and adjustments, consisting of normal recurring accruals, required to fairly present the financial position, results of operations, and cash flows for the interim periods. Operating results for the three and six months ended ~~March 31,~~June 30, 2021 are not necessarily indicative of the results to be expected for the full-year ending December 31, 2021.

Noncontrolling interests are presented in the Company’s consolidated financial statements as if parent company investors (controlling interests) and other minority investors (noncontrolling interests) in partially-owned subsidiaries have similar economic interests in a single entity. As a result, investments in noncontrolling interests are reported as equity in the Company’s consolidated financial statements. Additionally, the Company’s consolidated financial statements include 100% of a controlled subsidiary’s earnings, rather than only its share. Transactions between the parent company and noncontrolling interests are reported in equity as transactions between stockholders, provided that these transactions do not create a change in control.

The Consolidated Balance Sheet at December 31, 2020 has been derived from the audited consolidated financial statements but does not include all of the information and notes required by U.S. GAAP for complete financial statements. For further information, refer to the consolidated financial statements and notes to consolidated financial statements included in the Company’s 2020 Annual Report on Form 10-K filed on March 5, 2021 with the Securities and Exchange Commission.

Net sales include products and shipping and handling charges, net of estimates for product returns. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring products. All revenue is recognized when the Company satisfies the performance obligations under the contract and control of the product is transferred to the customer, primarily based on shipping terms. Revenue for shipping and handling charges are recognized at the time the products are shipped to, delivered to or picked up by the customer. The Company estimates product returns based on historical return rates.

	Three Months Ended March 31, 2021															Three Months Ended June 30, 2021
Product Type	PLP-USA			The Americas			EMEA			Asia-Pacific			Consolidated			PLP-USA			The Americas			EMEA			Asia-Pacific			Consolidated
Energy		57	%		74	%		60	%		72	%		63	%		61	%		65	%		51	%		65	%		60	%
Communications		38			22			33			5			29			35			31			44			3			30
Special Industries		5			4			7			23			8			4			4			5			32			10
Total		100	%		100	%		100	%		100	%		100	%		100	%		100	%		100	%		100	%		100	%

	Three Months Ended March 31, 2020															Three Months Ended June 30, 2020
Product Type	PLP-USA			The Americas			EMEA			Asia-Pacific			Consolidated			PLP-USA			The Americas			EMEA			Asia-Pacific			Consolidated
Energy		64	%		71	%		62	%		74	%		66	%		65	%		78	%		60	%		74	%		68	%
Communications		30			22			30			4			24			30			18			33			4			23
Special Industries		6			7			8			22			10			5			4			7			22			9
Total		100	%		100	%		100	%		100	%		100	%		100	%		100	%		100	%		100	%		100	%

	March 31, 2021			December 31, 2020			June 30, 2021			December 31, 2020
Raw materials	$	55,150		$	53,947		$	60,987		$	53,947
Work-in-process		9,251			9,272			10,654			9,272
Finished Goods		40,315			38,801			40,065			38,801
		104,716			102,020			111,706			102,020
Excess of current cost over LIFO cost		(5,022	)		(4,483	)		(6,278	)		(4,483	)
Net Inventory	$	99,694		$	97,537		$	105,428		$	97,537

Cost of inventories for certain material is determined using the last-in-first-out (LIFO) method and totaled approximately ~~$32.1~~$32.4 million at ~~March 31,~~June 30, 2021 and $32.0 million at December 31, 2020. An actual valuation of inventories under the LIFO method can be made only at the end of the year based on the inventory levels and costs at that time. Accordingly, interim LIFO calculations are based on management’s estimates of expected year-end inventory levels and costs. Because these estimates are subject to change and may be different than the actual inventory levels and costs at the end of the year, interim results are subject to the final year-end LIFO inventory valuation. During the ~~three-month~~three and six-month periods ended ~~March 31,~~June 30, 2021, the net change in LIFO inventories resulted in expense of $1.3 million and $1.8 million, respectively, to Income before income taxes. During the three and six-month periods ended June 30, 2020, the net change in LIFO inventories resulted in expense of ~~$.5~~less than $.1 million and $.2 million, respectively, to Income before income taxes.

Major classes of Property, plant and equipment are stated at cost and were as follows:

	March 31, 2021			December 31, 2020			June 30, 2021			December 31, 2020
Land and improvements	$	21,507		$	22,132		$	21,875		$	22,132
Buildings and improvements		99,366			97,909			100,377			97,909
Machinery, equipment and aircraft		195,897			176,377			199,447			176,377
Construction in progress		9,348			9,563			12,577			9,563
		326,118			305,981			334,276			305,981
Less accumulated depreciation		(180,718	)		(180,016	)		(185,765	)		(180,016	)
	$	145,400		$	125,965		$	148,511		$	125,965

The Company can be party to a variety of pending legal proceedings and claims arising in the normal course of business, including, but not limited to, litigation relating to employment, workers’ compensation, product liability, environmental and intellectual property. The Company has liability insurance to cover many of these claims.

Although the outcomes of these matters are not predictable with certainty, the Company records a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. In the event the Company determines that a loss is not probable, but is reasonably possible, and the likelihood to develop what the Company believes to be a reasonable range of potential loss exists, the Company will include disclosure related to such matters. To the extent that there is a reasonable possibility the losses could exceed amounts already accrued, the Company will adjust the accrual in the period in which the determination is made, disclose an estimate of the additional loss or range of loss and if the amount of such adjustment cannot be reasonably estimated, disclose that an estimate cannot be made. ~~During the year ended~~As of June 30, 2021 and December 31, 2020, the Company has accrued approximately $2.2 million, representing its best estimate for losses to be incurred on a variety of global legal matters. ~~The accrual remained unchanged at $2.2 million at March 31, 2021.~~

The Company and its subsidiaries Helix Uniformed Ltd. (“Helix”) and Preformed Line Products (Canada) Limited (“PLPC Canada”), were each named, jointly and severally, with each of SNC-Lavalin ATP, Inc. (“SNC ATP”), HD Supply Canada Inc., by its trade names HD Supply Power Solutions and HD Supply Utilities (“HD Supply”), and Anixter Power Solutions Canada Inc. (the corporate successor to HD Supply), “Anixter” and, together with the Company, PLPC Canada, Helix, SNC ATP and HD Supply, the (“Defendants”) in a complaint filed by Altalink, L.P. (the “Plaintiff”) in the Court of Queen’s Bench of Alberta in Alberta, Canada in November 2016 (the “Complaint”).

The Complaint states that Plaintiff engaged SNC ATP to design, engineer, procure and construct numerous power distribution and transmission facilities in Alberta (the “Projects”) and that through SNC ATP and HD Supply (now Anixter), spacer dampers manufactured by Helix were procured and installed in the Projects. The Complaint alleges that the spacer dampers have and may continue to become loose, open and detach from the conductors, resulting in damage and potential injury and a failure to perform the intended function of providing spacing and damping to the Project. The Plaintiffs are seeking an estimated $56.0 million Canadian dollars in damages jointly and severally from the Defendants, representing the costs of monitoring and replacing the spacer dampers and remediating property damage, due to alleged defects in the design and construction of, and supply of materials for, the Projects by SNC ATP and HD Supply/Anixter and in the design of the spacer dampers by Helix.

The Company believes the claims against it are without merit and intends to vigorously defend against such claims. The Company is unable to predict the outcome of this case, however, it has recorded a reserve for the low end of the range for potential loss associated with this matter. If this matter is concluded in a manner adverse to the Company, it could have a material effect on the Company’s financial results.

The Company is not a party to any other pending legal proceedings that the Company believes would, individually or in the aggregate, have a material adverse effect on its financial condition, results of operations or cash flows.

The following table reflects the changes in shareholders equity for the ~~three~~six months ended ~~March 31,~~June 30, 2021 and 2020:


																			Accumulated Other Comprehensive Income (Loss)																																	Accumulated Other Comprehensive Income (Loss)
		Common Shares		Common Shares Issued to Rabbi Trust			Deferred Compensation Liability			Paid in Capital			Retained Earnings			Treasury Shares			Cumulative Translation Adjustment			Unrecognized Pension Benefit Cost			Total Preformed Line Products Company Equity			Noncontrolling Interests			Total Equity				Common Shares		Common Shares Issued to Rabbi Trust			Deferred Compensation Liability			Paid in Capital			Retained Earnings			Treasury Shares			Cumulative Translation Adjustment			Unrecognized Pension Benefit Cost			Total Preformed Line Products Company Equity			Noncontrolling Interests			Total Equity
	(In thousands, except share and per share data)																																	(In thousands, except share and per share data)
Balance at December 31, 2020		$	13,028	$	(10,940	)	$	10,940		$	43,134		$	379,035		$	(88,568	)	$	(47,847	)	$	(6,704	)	$	292,078		$	(9	)	$	292,069			$	13,028	$	(10,940	)	$	10,940		$	43,134		$	379,035		$	(88,568	)	$	(47,847	)	$	(6,704	)	$	292,078		$	(9	)	$	292,069
Net income (loss)														7,179												7,179			(2	)		7,177															7,179												7,179			(2	)		7,177
Foreign currency translation adjustment																				(4,829	)					(4,829	)					(4,829	)																				(4,829	)					(4,829	)					(4,829	)
Recognized net actuarial gain, net of tax provision of $35																							114			114						114																								114			114						114
Total comprehensive income																										2,464			(2	)		2,462																											2,464			(2	)		2,462
Share-based compensation											1,034			(40	)											994						994												1,034			(40	)											994						994
Purchase of 52,590 common shares																	(3,678	)								(3,678	)					(3,678	)																	(3,678	)								(3,678	)					(3,678	)
Issuance of 63,316 common shares			127								270															397						397				127								270															397						397
Common shares distributed from rabbi trust of 3,727, net					120			(120	)																	0						0						120			(120	)																	0						0
Cash dividends declared - $.20 per share											(116	)		(990	)											(1,106	)					(1,106	)											(116	)		(990	)											(1,106	)					(1,106	)
Balance at March 31, 2021		$	13,155	$	(10,820	)	$	10,820		$	44,322		$	385,184		$	(92,246	)	$	(52,676	)	$	(6,590	)	$	291,149		$	(11	)	$	291,138			$	13,155	$	(10,820	)	$	10,820		$	44,322		$	385,184		$	(92,246	)	$	(52,676	)	$	(6,590	)	$	291,149		$	(11	)	$	291,138
Net income (loss)																																															8,869												8,869			22			8,891
Foreign currency translation adjustment																																																					4,311						4,311						4,311
Recognized net actuarial gain, net of tax provision of $35																																																								113			113						113
Total comprehensive income																																																											13,293			22			13,315
Share-based compensation																																												893			(40	)											853						853
Purchase of 13,800 common shares																																																		(1,046	)								(1,046	)					(1,046	)
Issuance of 7,400 common shares																																				15								349															364						364
Common shares issued to rabbi trust of 400, net																																						(30	)		30																		0						0
Cash dividends declared - $.20 per share																																															(981	)											(981	)					(981	)
Balance at June 30, 2021																																			$	13,170	$	(10,850	)	$	10,850		$	45,564		$	393,032		$	(93,292	)	$	(48,365	)	$	(6,477	)	$	303,632		$	11		$	303,643

																			Accumulated Other Comprehensive Income (Loss)																																	Accumulated Other Comprehensive Income (Loss)
		Common Shares		Common Shares Issued to Rabbi Trust			Deferred Compensation Liability			Paid in Capital			Retained Earnings			Treasury Shares			Cumulative Translation Adjustment			Unrecognized Pension Benefit Cost			Total Preformed Line Products Company Equity			Noncontrolling Interests			Total Equity				Common Shares		Common Shares Issued to Rabbi Trust			Deferred Compensation Liability			Paid in Capital			Retained Earnings			Treasury Shares			Cumulative Translation Adjustment			Unrecognized Pension Benefit Cost			Total Preformed Line Products Company Equity			Noncontrolling Interests			Total Equity
	(In thousands, except share and per share data)																																	(In thousands, except share and per share data)
Balance at December 31, 2019		$	12,848	$	(10,981	)	$	10,981		$	38,854		$	353,292		$	(79,106	)	$	(51,682	)	$	(5,671	)	$	268,535		$	33		$	268,568			$	12,848	$	(10,981	)	$	10,981		$	38,854		$	353,292		$	(79,106	)	$	(51,682	)	$	(5,671	)	$	268,535		$	33		$	268,568
Net income														3,698												3,698			(45	)		3,653
Net income (loss)																																															3,698												3,698			(45	)		3,653
Foreign currency translation adjustment																				(16,881	)					(16,881	)					(16,881	)																				(16,881	)					(16,881	)					(16,881	)
Recognized net actuarial gain, net of tax provision of $31																							98			98						98																								98			98						98
Total comprehensive income																										(13,085	)		(45	)		(13,130	)																										(13,085	)		(45	)		(13,130	)
Share-based compensation											976			(43	)											933						933												976			(43	)											933						933
Purchase of 75,246 common shares																	(3,980	)								(3,980	)					(3,980	)																	(3,980	)								(3,980	)					(3,980	)
Issuance of 77,381 common shares			155																							155						155				155																							155						155
Common shares distributed from rabbi trust of 3,358, net					101			(101	)																	0						0						101			(101	)																	0						0
Cash dividends declared - $.20 per share											(83	)		(963	)											(1,046	)					(1,046	)											(83	)		(963	)											(1,046	)					(1,046	)
Balance at March 31, 2020		$	13,003	$	(10,880	)	$	10,880		$	39,747		$	355,984		$	(83,086	)	$	(68,563	)	$	(5,573	)	$	251,512		$	(12	)	$	251,500			$	13,003	$	(10,880	)	$	10,880		$	39,747		$	355,984		$	(83,086	)	$	(68,563	)	$	(5,573	)	$	251,512		$	(12	)	$	251,500
Net income																																															10,481												10,481			7			10,488
Foreign currency translation adjustment																																																					5,472						5,472						5,472
Recognized net actuarial gain, net of tax provision of $31																																																								91			91						91
Total comprehensive income																																																											16,044			7			16,051
Share-based compensation																																												612			(26	)											586						586
Purchase of 29,724 common shares																																																		(3,011	)								(3,011	)					(3,011	)
Issuance of 525 common shares																																												26															26						26
Common shares distributed from rabbi trust of 525, net																																						(30	)		30																		0						0
Cash dividends declared - $.20 per share																																															(996	)											(996	)					(996	)
Balance at June 30, 2020																																			$	13,003	$	(10,910	)	$	10,910		$	40,385		$	365,443		$	(86,097	)	$	(63,091	)	$	(5,482	)	$	264,161		$	(5	)	$	264,156

The Company uses a December 31 measurement date for the Preformed Line Products Company Employees’ Retirement Plan (the “Plan”). Net periodic pension cost for this plan included the following components:

	Three Months Ended March 31						Three Months Ended June 30						Six Months Ended June 30
	2021			2020			2021			2020			2021			2020
Service cost	$	0		$	91		$	0		$	90		$	0		$	181
Interest cost		282			327			282			326			564			653
Expected return on plan assets		(586	)		(557	)		(586	)		(556	)		(1,172	)		(1,113	)
Recognized net actuarial loss		149			129			149			130			298			259
Net periodic pension cost (benefit)	$	(155	)	$	(10	)	$	(155	)	$	(10	)	$	(310	)	$	(20	)

There were 0 contributions to the Plan during the ~~three~~six months ended ~~March 31,~~June 30, 2021. The Company does 0t plan to contribute additional funds to the Plan during the remainder of 2021.

The following tables set forth the total changes in AOCI by component, net of tax:

Three Months Ended March 31, 2021

Three Months Ended March 31, 2020

Unrecognized
pension
benefit cost

Currency
Translation
Adjustment

Total

Unrecognized
pension
benefit cost

Currency
Translation
Adjustment

Total

Balance at January 1

$
(6,704
)

$
(47,847
)

$
(54,551
)

$
(5,671
)

$
(51,682
)

$
(57,353
)
Other comprehensive loss before
   reclassifications:

Loss on foreign currency
   translation adjustment

0

(4,829
)

(4,829
)

0

(16,881
)

(16,881
)
Amounts reclassified from AOCI:

Amortization of defined benefit
   pension actuarial gain (a)

114

0

114

98

0

98

Net current period other
   comprehensive income (loss)

114

(4,829
)

(4,715
)

98

(16,881
)

(16,783
)
Balance at March 31

$
(6,590
)

$
(52,676
)

$
(59,266
)

$
(5,573
)

$
(68,563
)

$
(74,136
)

	Three Months Ended June 30, 2021									Three Months Ended June 30, 2020
	Unrecognized pension benefit cost			Currency Translation Adjustment			Total			Unrecognized pension benefit cost			Currency Translation Adjustment			Total
Balance at April 1	$	(6,590	)	$	(52,676	)	$	(59,266	)	$	(5,573	)	$	(68,563	)	$	(74,136	)
Other comprehensive income before reclassifications:
Gain on foreign currency translation adjustment		0			4,311			4,311			0			5,472			5,472
Amounts reclassified from AOCI:
Amortization of defined benefit pension actuarial gain (a)		113			0			113			91			0			91
Net current period other comprehensive income		113			4,311			4,424			91			5,472			5,563
Balance at June 30	$	(6,477	)	$	(48,365	)	$	(54,842	)	$	(5,482	)	$	(63,091	)	$	(68,573	)

Basic earnings per share were computed by dividing Net income by the weighted-average number of common shares outstanding for each respective period. Diluted earnings per share were calculated by dividing Net income by the weighted-average of all potentially dilutive common stock that was outstanding during the periods presented.

The calculation of basic and diluted earnings per share for the ~~three-month~~three and six-month periods ended ~~March 31,~~June 30, 2021 and 2020 was as follows:

	Three Months Ended March 31				Three Months Ended June 30				Six Months Ended June 30
	2021		2020		2021		2020		2021		2020
Numerator
Net income	$	7,179	$	3,698	$	8,869	$	10,481	$	16,048	$	14,179
Denominator
Determination of shares
Weighted-average common shares outstanding		4,917		5,008		4,912		4,966		4,914		4,987
Dilutive effect - share-based awards		19		9		18		7		21		7
Diluted weighted-average common shares outstanding		4,936		5,017		4,930		4,973		4,935		4,994
Earnings per common share
Basic	$	1.46	$	0.74	$	1.81	$	2.11	$	3.27	$	2.84
Diluted	$	1.45	$	0.74	$	1.80	$	2.11	$	3.25	$	2.84

For the ~~three-month~~three and six-month periods ended ~~March 31,~~June 30, 2021, 0 and 10,000 stock options, respectively, were excluded from the calculation of diluted earnings per share as the effect would have been anti-dilutive. For the three and six-month periods ended June 30, 2020, ~~15,000~~40,313 and ~~20,000~~30,157 stock options, respectively, were excluded from the calculation of diluted earnings per share as the effect would have been anti-dilutive.

The Company’s finite and indefinite-lived intangible assets consist of the following:

	March 31, 2021					December 31, 2020					June 30, 2021					December 31, 2020
	Gross Carrying Amount		Accumulated Amortization			Gross Carrying Amount		Accumulated Amortization			Gross Carrying Amount		Accumulated Amortization			Gross Carrying Amount		Accumulated Amortization
Finite-lived intangible assets
Patents	$	4,813	$	(4,806	)	$	4,806	$	(4,806	)	$	4,813	$	(4,806	)	$	4,806	$	(4,806	)
Land use rights		1,259		(413	)		1,286		(396	)		1,346		(442	)		1,286		(396	)
Trademarks		1,863		(1,482	)		1,756		(1,474	)		1,872		(1,509	)		1,756		(1,474	)
Technology		7,458		(2,489	)		7,673		(2,402	)		7,593		(2,657	)		7,673		(2,402	)
Customer relationships		16,250		(8,642	)		16,441		(8,441	)		16,399		(8,954	)		16,441		(8,441	)
	$	31,643	$	(17,832	)	$	31,962	$	(17,519	)	$	32,023	$	(18,368	)	$	31,962	$	(17,519	)
Indefinite-lived intangible assets
Goodwill	$	28,844				$	29,508				$	29,316				$	29,508

The aggregate amortization expense for other intangibles with finite lives for the ~~three-month~~three and six-month periods ended ~~March 31,~~June 30, 2021 ~~and 2020~~ was $.5 million and $.9 million, respectively. The aggregate amortization expense for other intangibles with finite lives for the three and six-month periods ended June 30, 2020 was $.4 million and $.9 million, respectively. Amortization expense is estimated to be ~~$1.5~~$.8 million for the remainder of 2021, $1.7 million for 2022 and 2023, $1.6 million for 2024 and $1.4 million for 2025. The combined weighted-average remaining amortization period is approximately ~~12.2~~12.1 years. The weighted-average remaining amortization period by intangible asset class is as follows: patents, ~~4.8~~0 years; land use rights, ~~55.2~~55.0 years; trademarks, ~~6.3~~6.4 years; technology, ~~9.8~~9.6 years; and customer relationships, ~~9.2~~9.1 years.

The Company’s measurement date for its annual impairment test for goodwill is October 1st of each year. The Company performs its annual impairment test for goodwill utilizing a discounted cash flow methodology, market comparables, and an overall market capitalization reasonableness test in computing fair value by reporting unit. The Company then compares the fair value of the reporting unit to its carrying value to assess if goodwill has been impaired. Based on the assumptions as to growth, discount rates and the weighting used for each respective valuation methodology, results of the valuations could be significantly different. However, the Company believes that the methodologies and weightings used are reasonable and result in appropriate fair values of the reporting units. The Company’s valuation method uses Level 3 inputs under the fair value hierarchy.

As of the Company’s most recent annual impairment assessment date, the Asia-Pacific reporting unit’s fair value exceeded carrying value by approximately 15%. Accordingly, the reporting unit is potentially at risk of impairment in the future if there is a continued negative impact on the long-term outlook resulting from the continued effects of the COVID-19 pandemic or other factors such as a postponement of government capital spending. Total goodwill associated with this reporting unit was $7.6 million at June 30, 2021.

The Company’s only intangible asset with an indefinite life is goodwill. The changes in the carrying amount of goodwill, by segment, for the ~~three~~six months ended ~~March 31,~~June 30, 2021 are as follows:

	USA		The Americas		EMEA			Asia-Pacific			Total			USA		The Americas		EMEA			Asia-Pacific			Total
Balance at January 1, 2021	$	3,078	$	4,251	$	14,449		$	7,730		$	29,508		$	3,078	$	4,251	$	14,449		$	7,730		$	29,508
Currency translation		0		62		(584	)		(142	)		(664	)		0		159		(227	)		(124	)		(192	)
Balance at March 31, 2021	$	3,078	$	4,313	$	13,865		$	7,588		$	28,844
Balance at June 30, 2021														$	3,078	$	4,410	$	14,222		$	7,606		$	29,316

The Company maintains an equity award program to give the Company a competitive advantage in attracting, retaining, and motivating officers, employees and directors and to provide an incentive to those individuals to increase shareholder value through long-term incentives directly linked to the Company’s performance. Under the Preformed Line Products Company Long Term Incentive Plan of 2008 (the “LTIP”), certain employees, officers, and directors were eligible to receive awards of options, restricted shares and restricted share units (RSUs). The total number of Company common shares reserved for awards under the LTIP was 900,000, of which 800,000 common shares were reserved for RSUs and 100,000 common shares have been reserved for share options. The LTIP was terminated and replaced with the Preformed Line Products Company 2016 Incentive Plan (the “Incentive Plan”) in May 2016 upon approval by the Company’s Shareholders at the 2016 Annual Meeting of Shareholders on May 10, 2016. No further awards will be made under the LTIP and previously granted awards remain outstanding in accordance with their terms. Under the Incentive Plan, certain employees, officers, and directors will be eligible to receive awards of options, restricted shares and RSUs. The total number of Company common shares reserved for awards under the Incentive Plan is 1,000,000 of which 900,000 common shares have been reserved for restricted share awards and 100,000 common shares have been reserved for share options. The Incentive Plan expires on May 10, 2026.

For the regular annual grants, a portion of the RSUs is subject to time-based cliff vesting and a portion is subject to vesting based upon the Company’s performance over a set period for all participants except the CEO. All of the CEO’s regular annual RSUs are subject to vesting based upon the Company’s performance over a set-year period.

The RSUs are offered at no cost to the employees. The fair value of RSUs is based on the market price of a common share on the grant date and the shares underlying the awards are not issued until they vest. Dividends declared are accrued in cash.

A summary of the RSUs outstanding under the LTIP for the ~~three~~six months ended ~~March 31,~~June 30, 2021 is as follows:

	Restricted Share Units										Restricted Share Units
	Performance and Service Required ⁽¹⁾			Service Required		Total Restricted Share Units			Weighted-Average Grant-Date Fair Value		Performance and Service Required ⁽¹⁾			Service Required		Total Restricted Share Units			Weighted-Average Grant-Date Fair Value
Nonvested as of January 1, 2021		183,777			15,786		199,563		$	60.33		183,777			15,786		199,563		$	60.33
Granted		51,308			12,285		63,593			71.84		51,308			12,285		63,593			71.84
Vested		(56,973	)		0		(56,973	)		73.86		(56,973	)		0		(56,973	)		73.86
Forfeited		0			0		0			0.00		0			0		0			0.00
Nonvested as of March 31, 2021		178,112			28,071		206,183		$	60.49
Nonvested as of June 30, 2021												178,112			28,071		206,183		$	60.49

For time-based RSUs, the Company recognizes stock-based compensation expense on a straight-line basis over the requisite service period of the award in General and administrative expense in the accompanying Statements of Consolidated Income. Compensation expense related to the time-based RSUs for ~~both three-month~~three and six-month periods ended ~~March 31,~~June 30, 2021 was $.1 million and $.3 million, respectively. Compensation expense related to the time-based RSUs for both three and six-month periods ended June 30, 2020 was $.1 ~~million.~~million and $.2 million, respectively. As of ~~March 31,~~June 30, 2021, there was ~~$1.2~~$1.1 million of total unrecognized compensation cost related to time-based RSUs that is expected to be recognized over the weighted-average remaining period of approximately ~~2.4~~2.1 years.

For the performance-based RSUs, the number of RSUs in which the participants will vest depends on the Company’s level of performance measured by growth in either operating or pre-tax income and sales growth over a requisite performance period. Depending on the extent to which the performance criterions are satisfied under the LTIP and the Incentive Plan, the participants are eligible to earn common shares over the vesting period. Performance-based compensation expense for the ~~three-month~~three and six-month periods ended ~~March 31,~~June 30, 2021 was $.8 million and $1.5 million, respectively. Performance-based compensation expense for the three and six-month periods ended June 30, 2020 was ~~$.7~~$.5 million and ~~$.8~~$1.3 million, respectively. As of ~~March 31,~~June 30, 2021, the remaining compensation expense of ~~$4.8~~$4.0 million for outstanding performance-based ~~RSU’s~~RSUs is expected to be recognized over the weighted-average period of approximately ~~1.9~~1.8 years.

In the event of a Change in Control (as defined in the LTIP and the Incentive Plan), vesting of the RSUs will be accelerated and all restrictions will lapse. Unvested performance-based awards will vest on a target potential payout.

To satisfy the vesting of its RSU awards, the Company has reserved new shares from its authorized but unissued shares. Any additional awards granted will also be issued from the Company’s authorized but unissued shares.

The LTIP permitted and now the Incentive Plan permits the grant of 100,000 options to buy common shares of the Company to certain employees at not less than fair market value of the shares on the date of grant. Options issued to date under the LTIP and the Incentive Plan vest 50% after one year following the date of the grant, 75% after two years, and 100% after three years, and expire from five to ten years from the date of grant. Shares issued as a result of stock option exercises will be funded with the issuance of new shares.

The Company utilizes the Black-Scholes option pricing model for estimating fair values of options. The Black-Scholes model requires assumptions regarding the volatility of the Company’s stock, the expected life of the stock award and the Company’s dividend yield. The Company utilizes historical data in determining these assumptions. The risk-free rate for periods within the contractual life of the option is based on the U.S. zero coupon Treasury yield in effect at the time of grant.

There were 0 options granted during ~~either of~~ the ~~three-month periods~~six-month period ended ~~March 31,~~June 30, 2021 and 25,500 granted during the six-month period ended June 30, 2020.

Stock option activity under the Company’s LTIP for ~~three~~six months ended ~~March 31,~~June 30, 2021 was as follows:

	Number of Shares		Weighted Average Exercise Price per Share		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value (000's)		Number of Shares			Weighted Average Exercise Price per Share		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value (000's)
Outstanding at January 1, 2021		50,950	$	54.81						50,950		$	54.81
Granted		0								0
Exercised		0								(7,000	)	$	47.66
Forfeited		0								0
Outstanding (vested and expected to vest) at March 31, 2021		50,950	$	54.81		7.3	$	730
Exercisable at March 31, 2021		21,700	$	61.62		4.8	$	184
Outstanding (vested and expected to vest) at June 30, 2021										43,950		$	55.95		6.7	$	802
Exercisable at June 30, 2021										27,450		$	58.91		5.5	$	420

There were 7,000 stock option exercises during the six-month period ended June 30, 2021 and 0stock option shares were exercised during ~~either of~~ the ~~three-month periods~~six-month period ended ~~March 31, 2021 and~~June 30, 2020.

For the ~~three-month~~three and six-month periods ended ~~March 31,~~June 30, 2021, the Company recorded compensation expense related to the stock options currently vested of less than $.1 million and $.1 million, respectively. For the each of three and six-month periods ended June 30, 2020, the Company recorded compensation expense related to the stock options currently vested of ~~$.1 million and~~ less than $.1 ~~million, respectively.~~million. The total compensation cost related to nonvested awards not yet recognized at ~~March 31,~~June 30, 2021 is expected to be ~~$.3~~$.2 million over a weighted-average period of approximately ~~1.9~~1.7 years.

The Company maintains a trust, commonly referred to as a rabbi trust, in connection with the Company’s deferred compensation plan. This plan allows for 2 deferrals. First, Directors make elective deferrals of Director fees payable and held in the rabbi trust. The deferred compensation plan allows the Directors to elect to receive Director fees in common shares of the Company at a later date instead of fees paid each quarter in cash. Second, this plan allows certain Company employees to defer restricted shares or RSUs for future distribution in the form of common shares. Assets of the rabbi trust are consolidated, and the value of the Company’s common shares held in the rabbi trust is classified in Shareholders’ equity and generally accounted for in a manner similar to treasury stock. The Company recognizes the original amount of the deferred compensation (fair value of the deferred stock award at the date of grant) as the basis for recognition in common shares issued to the rabbi trust. Changes in the fair value of amounts owed to certain employees or Directors are not recognized as the Company’s deferred compensation plan does not permit diversification and must be settled by the delivery of a fixed number of the Company’s common shares. As of ~~March 31,~~June 30, 2021, ~~261,781~~262,181 shares have been deferred and are being held in the rabbi trust.

The Company measures and records certain assets and liabilities at fair value. A fair value hierarchy is used for those assets and liabilities measured at fair value that distinguishes between assumptions based on market data (observable inputs) and the Company’s assumptions (unobservable inputs). The hierarchy consists of the following three levels:

The following table summarizes the Company’s assets and liabilities, recorded and measured at fair value, on the Company’s Consolidated Balance Sheets as of ~~March 31,~~June 30, 2021 and December 31, 2020:

Description	Balance as of March 31, 2021		Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance as of June 30, 2021		Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Foreign currency forward contracts	$	634	$	0	$	634	$	0	$	295	$	0	$	295	$	0
Total Assets	$	634	$	0	$	634	$	0	$	295	$	0	$	295	$	0

Liabilities:
Supplemental profit sharing plan	$	7,136	$	0	$	7,136	$	0	$	7,330	$	0	$	7,330	$	0
Foreign currency forward contracts		55		0		55		0		155		0		155		0
Total Liabilities	$	7,191	$	0	$	7,191	$	0	$	7,485	$	0	$	7,485	$	0

The Company operates internationally and enters into intercompany transactions denominated in foreign currencies. Consequently, the Company is subject to market risk arising from exchange rate movements between the dates when foreign currency transactions occur and the dates they are settled. The Company currently uses foreign currency forward contracts to reduce the risk related to some of these transactions. These contracts usually have maturities of 90 days or less and generally require an exchange of foreign currencies for U.S. dollars at maturity at rates stated in the contracts. These contracts are not designated as hedging instruments under U.S. GAAP. Accordingly, the changes in the fair value of the foreign currency forward contracts are recognized in each accounting period in “Other operating expense - net” on the Consolidated Statements of Income together with the transaction gain or loss from the related balance sheet position. For the ~~three-month~~three and six-month periods ended ~~March 31,~~June 30, 2021, the Company recognized net losses of $1.3 million and $.9 million, respectively, on foreign currency forward contracts. For the three and six-month periods ended June 30, 2020, the Company recognized a net ~~gains~~loss of $.3 million and ~~$1.1~~a net gain of $.9 million, respectively, on foreign currency forward contracts.

The Company has a non-qualified Supplemental Profit Sharing Plan for its executives and directors. The liability for this unfunded Supplemental Profit Sharing Plan was $~~7.1~~7.3 million and $7.1 million at ~~both March 31,~~June 30, 2021 and December 31, ~~2020.~~2020, respectively. These amounts are recorded within Other noncurrent liabilities on the Company’s Consolidated Balance Sheets. The Supplemental Profit Sharing Plan allows participants the ability to hypothetically invest their proportionate award into various investment options, which primarily include mutual funds. The Company credits earnings, gains and losses to the participants’ deferred compensation account balances based on the investments selected by the participants. The Company measures the fair value of the Supplemental Profit Sharing Plan liability using the market values of the participants’ underlying investment accounts.

In ~~January 2021,~~March 2020, the ~~Financial Accounting Standards Board (FASB)~~FASB issued Accounting Standards Update ~~(“ASU”~~("ASU" No. ~~2021-01)~~2020-04), Reference Rate Reform (“Topic 848”) to. Certain amendments were provided for in ASU No. ~~2020-04,~~2021-01, Reference Rate Reform ~~(ASU 2021-01)~~(Topic 848) Scope, which was ~~effective immediately. The amendments~~issued in January 2021. ASU ~~2021-01 provide~~2020-04 provides temporary optional ~~expedients and exceptions for applying GAAP~~guidance to ~~contract modifications and hedging relationships, subject to meeting certain criteria, that reference~~ease the financial reporting burden associated with the expected market transition from the London ~~Interbank Offered~~Inter-Bank Offer Rate ~~(“LIBOR”~~("LIBOR") ~~or another~~to alternative reference rates. This guidance is available immediately and may be implemented in any period prior to the guidance expiration on December 31, 2022. The Company is currently assessing which of its various contracts will require an update for a new reference rate ~~expected to be discontinued because~~and will determine the timing for implementation of the reference rate reform. The provisions must be applied at a Topic, Subtopic, or Industry Subtopic level for all transactions other than derivatives, which may be applied at a hedging relationship level. The Company adopted ASU 2021-01 onthis guidance after completing that analysis.

On January 1, 2021, the Company adopted Account Standards Update (ASU) 2019-12, Income Taxes (ASC 740) – Simplifying the Accounting for Income Taxes, which simplifies the accounting for income taxes by removing certain exceptions to the general principles in ASC 740 and ~~is currently evaluating the potential future impact, if~~also clarifies and amends existing guidance to improve consistent application. The adoption of ASU 2019-12 did not result in any ~~on its Consolidated Financial Statements.~~ material adjustments

The Company considers the applicability and impact of all ASUs. Recently issued ASUs that are not considered were assessed and determined to be not applicable in the current reporting period.

The following tables present a summary of the Company’s reportable segments for the three and six months ended ~~March 31,~~June 30, 2021 and 2020. Financial results for the PLP-USA segment include the elimination of all segments’ intercompany profit in inventory.

	Three Months Ended March 31						Three Months Ended June 30					Six Months Ended June 30
	2021			2020			2021			2020		2021			2020
Net sales
PLP-USA	$	56,231		$	46,601		$	62,087		$	53,966	$	118,316		$	100,567
The Americas		17,521			17,241			18,625			17,486		36,146			34,727
EMEA		23,481			20,360			27,352			21,048		50,834			41,408
Asia-Pacific		20,320			18,650			24,974			25,129		45,295			43,779
Total net sales	$	117,553		$	102,852		$	133,038		$	117,629	$	250,591		$	220,481
Intersegment sales
PLP-USA	$	2,385		$	2,860		$	3,779		$	2,129	$	6,164		$	5,001
The Americas		2,066			1,863			2,556			2,813		4,622			4,677
EMEA		511			450			1,421			1,156		1,932			1,622
Asia-Pacific		3,652			2,087			4,812			3,910		8,465			6,004
Total intersegment sales	$	8,614		$	7,260		$	12,568		$	10,008	$	21,183		$	17,304
Income taxes
PLP-USA	$	2,376		$	845		$	2,481		$	2,025	$	4,859		$	2,871
The Americas		610			634			659			812		1,268			1,445
EMEA		445			86			409			445		854			531
Asia-Pacific		(54	)		(114	)		137			115		82			1
Total income taxes	$	3,377		$	1,451		$	3,686		$	3,397	$	7,063		$	4,848
Net income attributable to Preformed Line Products Company shareholders
PLP-USA	$	5,576		$	3,550		$	6,319		$	6,135	$	11,895		$	9,686
The Americas		1,192			995			1,962			1,695		3,153			2,690
EMEA		1,195			337			1,043			2,247		2,239			2,583
Asia-Pacific		(784	)		(1,184	)		(455	)		404		(1,239	)		(780	)
Total net income attributable to Preformed Line Products Company shareholders	$	7,179		$	3,698		$	8,869		$	10,481	$	16,048		$	14,179

The Company’s effective tax rate was ~~32%~~29% and ~~28%~~24% for the ~~three month~~three-month periods ended ~~March 31,~~June 30, 2021 and 2020, respectively, and 31% and 26% for the six months ended June 30, 2021 and 2020, respectively. The higher effective tax rate for the three and six months ended ~~March 31,~~June 30, 2021 and 2020 compared to the U.S. federal statutory rate of 21% was primarily due to ~~increases~~an increase in U.S. permanent items primarily related to limitations on the deductibility of executive compensation, plus adjustments due to foreign income and an increase in earnings in jurisdictions with higher tax rates than the U.S. federal statutory rate where such earnings are permanently ~~reinvested and an increase in various U.S. permanent items, primarily from the deductibility of officer’s compensations.~~reinvested. The effective tax rate ~~increased~~increase for the ~~three months ended March 31,~~second quarter of 2021 compared to the ~~three months ended March 31,~~second quarter of 2020 is primarily due to a greater increase in pre-tax earnings along with the ~~decrease~~permanent items having a less significant change in ~~non-deductible executive compensation combined with an increase from adjustments due~~the second quarter of 2021 compared to ~~foreign income.~~the second quarter of 2020.

The Company provides valuation allowances against deferred tax assets when it is more likely than not that some portion or all of its deferred tax assets will not be realized. NaN significant changes to the valuation allowances were reflected for the periods ended ~~March 31,~~June 30, 2021 or December 31, 2020.

There were 0 significant changes to any of the balances of unrecognized tax benefits on for the ~~three~~six months ended ~~March 31,~~June 30, 2021 or the year ended December 31, 2020.

The Company records an accrual for estimated warranty costs to Costs of products sold in the Statements of Consolidated Income. These amounts are recorded in Accrued expenses and other liabilities on the Company’s Consolidated Balance Sheets. The Company records and accounts for its warranty reserve based on specific claim incidents. Should the Company become aware of a specific potential warranty claim for which liability is probable and reasonably estimable, a specific charge is recorded and accounted for accordingly. Adjustments are made quarterly to the accruals as claim information changes.

	Three Months Ended March 31						Six Months Ended June 30
	2021			2020			2021			2020
Beginning of period balance	$	1,282		$	1,309		$	1,282		$	1,309
Additions charged to income		313			38			1,325			48
Warranty usage		(93	)		(28	)		(244	)		(28	)
Currency translation		(30	)		(152	)		0			(87	)
End of period balance	$	1,472		$	1,167		$	2,363		$	1,242

On January 19, 2021, the Company received funding for a term loan from PNC Equipment Finance, LLC in the principal amount of $20.5 million to fund the purchase of a corporate aircraft. In September 2020, the Company made a deposit of $6.8 million toward the purchase of the aircraft which ~~amount~~ was subsequently refunded in January 2021 and the full amount of the $20.5 million purchase price was drawn on the loan. The aircraft replaces the Company’s previously owned aircraft, which was sold in December 2020. The proceeds of the sale were used to pay off the debt associated with the previously-owned aircraft. The term of the new loan is 120 months at a fixed interest rate of 2.744%. The loan is payable in 119 equal monthly installments, which commenced on March 1, 2021 with a final payment of any outstanding principal and accrued interest due and payable on the final monthly payment date. Of the ~~$20.3~~$19.8 million outstanding on this debt facility at ~~March 31,~~June 30, 2021, $2.1 million was classified as current. The loan is secured by the aircraft.

On April 17, 2020, the Company extended the term on its $65 million credit facility from June 30, 2021 to June 30, 2024 and added its Austrian subsidiary as a borrower on the facility. All other terms remain the same, including the interest rate at LIBOR plus 1.125% unless the Company’s funded debt to Earnings before Interest, Taxes and Depreciation ratio exceeds 2.25 to 1, at which point the LIBOR spread becomes 1.500%. At ~~March 31,~~June 30, 2021, the U.S. borrowed $5.9 million on the facility with a term expiring June 30, 2024.

.At June 30, 2021, the Company’s Polish subsidiary had borrowed ~~$6.3~~$6.6 million U.S. dollars at a rate of ~~1.125%~~1.125% plus the Warsaw Interbank Offer Rate with a term expiring June 30, 2024. At ~~March 31,~~June 30, 2021, the Company’s Australian subsidiary had borrowed $3.7 million U.S. dollars, also with a term expiring June 30, 2024. At ~~March 31,~~June 30, 2021, the Company’s Austrian subsidiary had borrowed $.6 million U.S. dollars with a term expiring June 30, 2024. At ~~March 31,~~June 30, 2021, the interest rates on the U.S., Polish, Australian and Austrian line of credit agreement were ~~1.236%~~1.236%, ~~1.315%~~1.305%, ~~1.145%~~1.150% and ~~1.273%~~1.216%, respectively. Under the credit facility, at ~~March 31,~~June 30, 2021, the Company had utilized ~~$11.5~~$16.8 million with ~~$53.5~~$45.2 million available under the line of credit, net of long-term outstanding letters of credit of $.1 million. The line of credit agreement contains, among other provisions, requirements for maintaining levels of net worth and profitability. At ~~March 31,~~June 30, 2021, the Company was in compliance with these covenants.

On April 25, 2019, the Company borrowed $8.0 million U.S. dollars on behalf of its Indonesian subsidiary at a rate of 3.501% with a term expiring on April 30, 2024. At ~~March 31,~~June 30, 2021, ~~$5.7~~$6.3 million was outstanding on this debt facility, of which $.8 million is classified as current.

On August 14, 2019, the Company’s New Zealand subsidiary borrowed $5.3 million U.S. dollars at a rate of 3.900% with a term expiring on August 26, 2021. At ~~March 31,~~June 30, 2021, ~~$4.1~~$3.8 million was outstanding on this facility, all of which is classified as current and has an interest rate of 3.150%. This loan is secured by the Company’s New Zealand subsidiary’s land and building.

For the periods ended ~~March 31,~~June 30, 2021 and December 31, 2020, the Company’s ~~Asia Pacific~~Asia-Pacific segment had ~~$.7~~$.3 million and $.6 million, respectively, in restricted cash used to secure bank debt. The restricted cash is shown on the Company’s Consolidated Balance Sheets in Cash and cash equivalents.

The Company regularly enters into leases in the normal course of business. As of ~~March 31,~~June 30, 2021, the leases in effect were related to land, buildings, vehicles, office equipment and other production equipment under operating leases with lease terms of up to 99 years. The Company often has the option to renew lease terms for buildings and other assets. The exercise of lease renewal options are generally at the Company’s sole discretion. In addition, certain lease arrangements may be terminated prior to their original expiration date at the Company’s discretion. The Company evaluates renewal and termination options at the lease commencement date to determine if the Company is reasonably certain to exercise the option on the basis of economic factors. The weighted average remaining lease term for the Company’s operating and financing leases as of ~~March 31,~~June 30, 2021 was ~~18.5~~17.9 and ~~3.1~~3.0 years, respectively.

Lease expense is recognized for these leases on a straight-line basis over the lease term with variable lease payments recognized in the period those payments are incurred. The components of operating and finance lease costs are recognized in Costs and expenses and Interest expense, respectively, on the Company’s Consolidated Statements of Income. The Company’s operating and finance lease costs for the ~~three~~six months ended ~~March 31,~~June 30, 2021 and 2020 were as follows:

	Three Months Ended				Six Months Ended
	March 31, 2021		March 31, 2020		June 30, 2021		June 30, 2020
Components of lease expense
Operating lease cost	$	698	$	709	$	1,483	$	1,442

Finance lease cost
Amortization of right-of-use assets		103		16		205		32
Interest on lease liabilities		8		2		16		5
Total lease cost	$	809	$	727	$	1,704	$	1,479

The discount rate implicit within each lease is often not determinable and, therefore, the Company establishes the discount rate based on its incremental borrowing rate. The incremental borrowing rate for the Company’s leases is determined based on lease term and currency in which lease payments are made, adjusted for impacts of collateral. The weighted average discount rate used to measure the Company’s operating and finance lease liabilities as of ~~March 31,~~June 30, 2021 was ~~4.93%~~4.92% and 4.14%, respectively.

Future maturities of the Company’s lease liabilities as of ~~March 31,~~June 30, 2021 are as follows:

	Operating Leases		Finance Leases		Operating Leases		Finance Leases
2021	$	1,801	$	306	$	1,241	$	202
2022		2,188		215		2,342		231
2023		1,532		126		1,688		130
2024		738		79		988		81
2025 and thereafter		9,801		86		11,098		88
Total lease payments		16,060		812		17,357		732
Less amount of lease payment representing interest		5,787		51		6,047		45
Total present value of lease payments	$	10,273	$	761	$	11,310	$	687

The total minimum sublease rentals under noncancelable subleases to be received through 2023 is ~~$2.4~~$2.1 million.

Supplemental cash flow information related to leases for the ~~three-month~~six-month period ended ~~March 31,~~June 30, 2021 was as follows:

	March 31, 2021		March 31, 2020		June 30, 2021		June 30, 2020
Supplemental cash flow information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	740	$	2	$	1,440	$	1,341
Operating cash flows from finance leases		8		730		16		5
Financing cash flows from finance leases		108		29		209		57

On January 4, 2021, the Company purchased 1,160 shares of the Company from a retired Officer at a price per share of $66.01, which was calculated from a 30-day average market price in connection with the vesting of equity awards. The Audit Committee of the Board of Directors approved this transaction.

On February 3, 2021, the Company purchased 29,676 shares of the Company from current and retired Officers at a price per share of $69.19, which was calculated from a 30-day average market price in connection with the vesting of equity awards. The Audit Committee of the Board of Directors approved this transaction.

On March 10, 2021, the Company purchased 19,497 shares of the Company from current Officers at a price per share of $71.10, which was calculated from a 30-day average market price in connection with the vesting of equity awards. The Audit Committee of the Board of Directors approved this transaction.

On March 15, 2021, the Company purchased 2,257 shares of the Company from a current employee at a price per share of $71.91, which was calculated from a 30-day average market price in connection with the vesting of equity awards. The Audit Committee of the Board of Directors approved this transaction.

On June 9, 2021, the Company purchased 1,500 shares of the Company from a current employee at a price per share of $74.09, which was calculated from a 30-day average market price in connection with the vesting of equity awards. The Audit Committee of the Board of Directors approved this transaction.

On June 15, 2021, the Company purchased 10,000 shares of the Company from a current Officer at a price per share of $75.87, which was calculated from a 30-day average market price in connection with the vesting of equity awards. The Audit Committee of the Board of Directors approved this transaction.

!ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) is intended to help the readers of our consolidated financial statements better understand our results of operations, financial condition and present business environment. The MD&A is provided as a supplement to, and should be read in conjunction with, our unaudited consolidated financial statements and related notes included elsewhere in this report.

Preformed Line Products Company (the “Company”, “PLPC”, “we”, “us”, or “our”) was incorporated in Ohio in 1947. We are an international designer and manufacturer of products and systems employed in the construction and maintenance of overhead and underground networks for the energy, telecommunication, cable operators, information (data communication), and other similar industries. Our primary products support, protect, connect, terminate, and secure cables and wires. We also provide solar hardware systems, mounting hardware for a variety of solar power applications, and fiber optic and copper splice closures. PLPC is respected around the world for quality, dependability and market-leading customer service. Our goal is to continue to achieve profitable growth as a leader in the research, innovation, development, ~~manufacture,~~manufacturing, and marketing of technically advanced products and services related to energy, communications and cable systems and to take advantage of this leadership position to sell additional quality products in familiar markets. We have 30 sales and manufacturing operations in 22 different countries.

We report our segments in four geographic regions: PLP-USA (including corporate), The Americas (includes operations in North and South America without PLP-USA), EMEA (Europe, Middle East & Africa) and Asia-Pacific, in accordance with accounting standards codified in Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 280, Segment Reporting. Each segment distributes a full range of our primary products. Our PLP-USA segment is comprised of our U.S. operations manufacturing our traditional products primarily supporting our domestic energy, communications and special industries products. Our other three segments, The Americas, EMEA and Asia-Pacific, support our energy, communications and special industries products in each respective geographical region.

The segment managers responsible for each region report directly to the Company’s Chief Executive Officer, who is the chief operating decision maker, and are accountable for the financial results and performance of their entire segment for which they are responsible. The business components within each segment are managed to maximize the results of the entire operating segment and Company rather than the results of any individual business component of the segment.

We evaluate segment performance and allocate resources based on several factors primarily based on sales and net income.

Our consolidated financial statements are prepared in conformity with U.S. generally accepted accounting principles (GAAP). Our discussions of the financial results include non-GAAP measures (e.g., foreign currency impact) to provide additional information concerning our financial results and provide information that we believe is useful to the readers of our consolidated financial statements in the assessment of our performance and operating trends.

The following discussion describes our results of operations for the three ~~months~~and six month periods ended ~~March 31,~~June 30, 2021. The first quarter of 2020 saw the initial global outbreak of a novel strain of coronavirus (“COVID-19”), which in the latter part of ~~the~~that quarter created significant global economic disruption. While the ~~prior year~~ outbreak did not have a material impact on our results for those ~~reported periods,~~prior year, it created challenges for us in countries that were the earliest to be impacted by the pandemic, namely countries in our Asia-Pacific business segment. ~~Due to restrictions on our operations, the operations of our customers and the global supply chain, we are continuing to actively monitor the impact of COVID-19 on current and future periods.~~

As the virus spread, we took action to protect the health and safety of our employees while we maintained critical operations to protect our customers and suppliers. Many of our customers are considered “essential” and remained open for business, although in a limited capacity in some cases, which slowed demand into the second and third quarter of ~~the prior~~2020 year, most notably for specific customers in our Asia Pacific segment. Our North American plants have remained fully operational and only some of our international plants were closed temporarily. ~~While there are~~

During the quarter ended June 30, 2021, the resurgence of COVID-19 and the Delta variant has resulted in new temporary closure requirements, primarily in our Asia Pacific segment. There have been some restrictions to the supply of products since the pandemic began and, during the quarter ended June 30, 2021, we experienced significant raw material and transportation cost inflation that negatively affected our earnings. To offset these increased costs, we announced price increases in June 2021, but due to our order backlog, these price increases had a limited effect in offsetting increased costs during the second quarter. Continued cost inflation in these areas through the second half of 2021 may require further price adjustments going forward to maintain profit margin, and any price increases may have a negative effect on demand.

We may experience other potential price increases globally and ~~those~~ restrictions on operations may continue or expand to other regions, however, we believe that our global supply chain currently remains strong.

Due to the continued uncertainty created by COVID-19, restrictions on our operations, the operations of our customers and the global supply chain, we are continuing to actively monitor the impact of COVID-19 on current and future periods and actively manage costs and our liquidity position to provide additional flexibility while still supporting our customers and their specific needs. We have reduced and may continue to reduce operating expenses and could continue to experience lower variable SG&A, primarily through a decrease in travel-related expenses incurred by our associates due to travel restrictions in place.

While we expect that the COVID-19 outbreak will continue to have an adverse impact on our business, the businesses of our customers and the global economy, we cannot predict the duration or scope of the COVID-19 pandemic or the magnitude of its impact on our business and results of operations. In addition, the impact of COVID-19 could potentially exacerbate other risks discussed, any of which could have a material adverse effect on the Company. We continue to assess all challenges related to COVID-19 and plan accordingly. The extent of any future impact is dependent upon several factors including those described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 filed with the Securities and Exchange Commission (“SEC”) on March 5, 2021.

Our consolidated financial statements are subject to fluctuations in the exchange rates of foreign currencies in relation to the U.S. dollar. As foreign currencies strengthen against the U.S. dollar, our sales and costs increase as the foreign currency-denominated financial statements translate into more U.S. dollars, and, conversely, when foreign currencies weaken, our sales and costs decrease upon translation into U.S. dollars. The fluctuations of foreign currencies during the three months ended ~~March 31,~~June 30, 2021 had a ~~$1.8~~$6.2 million favorable effect on net sales when compared to the same period in 2020. There was a ~~less than $.1~~$.3 million favorable effect on net income for the three months ended ~~March 31,~~June 30, 2021 as compared to the same period in 2020. On a reportable segment basis, the impact of foreign currency on net sales and net income for the three ~~months~~and six-month periods ended ~~March 31,~~June 30, 2021 was as follows:

	Foreign Currency Translation Impact						Foreign Currency Translation Impact
(Thousands of dollars)	Net Sales			Net Income			Net Sales					Net Income
							Three Months		Six Months			Three Months			Six Months

The Americas	$	(1,802	)	$	(48	)	$	797	$	(1,006	)	$	152		$	104
EMEA		1,682			117			3,106		4,789			170			287
Asia-Pacific		1,905			(41	)		2,271		4,176			(29	)		(69	)
Total	$	1,785		$	28		$	6,174	$	7,959		$	293		$	322

The operating results for the three months ended ~~March 31,~~June 30, 2021 are compared to the same period in 2020. Net sales for the three months ended ~~March 31,~~June 30, 2021 of ~~$117.6~~$133.0 million increased ~~$14.7~~$15.4 million, or 13%, compared to 2020. As a percentage of net sales, gross profit decreased to 32.4% in 2021 from 33.6% in 2020. Gross profit for the three-month periods ended June 30, 2021 and 2020 was $43.0 million and $39.6 million, respectively. Excluding the favorable impact of foreign currency translation, gross profit increased $1.9 million, or 4%, compared to 2020. Costs and expenses of $30.3 million increased $5.5 million compared to 2020 and included an unfavorable impact from currency translation of $1.5 million. Operating income for the three months ended June 30, 2021 was $12.7 million, a decrease of $2.1 million compared to 2020. Net income for the three months ended June 30, 2021 of $8.9 million decreased $1.6 million compared to the three months ended June 30, 2020. The effect of currency translation had favorable impacts of $.4 million and $.3 million on operating income and net income, respectively.

The operating results for the six months ended June 30, 2021 are compared to the same period in 2020. Net sales for the six months ended June 30, 2021 of $250.6 million increased $30.1 million, or 14%, compared to 2020. As a percentage of net sales, gross profit increased to ~~34.2%~~33.2% in 2021 from ~~32.0%~~32.9% in 2020. Gross profit for the ~~three-month~~six-month periods ended ~~March 31,~~June 30, 2021 and 2020 was ~~$40.2~~ $83.2

million and ~~$32.9~~$72.5 million, respectively. Excluding the favorable impact of foreign currency translation, gross profit increased ~~$6.7~~$8.3 million, or ~~20%~~11%, compared to 2020. Costs and expenses of ~~$29.4~~$59.7 million increased ~~$1.7~~$6.7 million compared to 2020 and included an unfavorable impact from currency translation of ~~$.6~~$2.0 million. Operating income for the ~~three~~six months ended ~~March 31,~~June 30, 2021 was ~~$10.8~~$23.5 million, an increase of ~~$5.6~~$4.1 million compared to 2020. Net income for the ~~three~~six months ended ~~March 31,~~June 30, 2021 of ~~$7.2~~$16.1 million increased ~~$3.5~~$1.9 million compared to the ~~three~~six months ended ~~March 31,~~June 30, 2020. The effect of currency translation had ~~negative~~favorable impacts of ~~less than $.1~~$.5 million and $.3 million on ~~both~~ operating income and net ~~income.~~

The following table reflects the impact of foreign currency fluctuations on operating income for the ~~three-month~~three and six-month periods ended ~~March 31,~~June 30, 2021 and 2020:

Despite the constant changes in the current global economy, and aside from the uncertainty created by the COVID-19 outbreak, we believe our business fundamentals and our financial position are sound and that we are strategically well-positioned. We remain focused on assessing our business structure, global facilities and overall capacity in conjunction with the requirements of local manufacturing in the markets that we serve. The growth in PLP-USA net sales will require additional investment to be made within our PLP-USA facilities, both in the form of operational capacity as well as increased warehouse space. These investments in our U.S. operations will allow us to further enhance the service we provide to our U.S. customers beginning in the quarter ended December 31, 2022. If necessary, we will modify redundant processes and further utilize our global manufacturing network to manage costs, increase sales volumes and deliver value to our customers. We have continued to invest in the business to expand into new markets for the Company, improve efficiency, develop new products, increase our capacity and become an even stronger supplier to our customers. We currently have a bank debt to equity ratio of ~~20.4%~~20.9% and ~~can~~have the continued ability borrow needed funds at a competitive interest rate under our credit facility.

THREE MONTHS ENDED ~~MARCH 31,~~JUNE 30, 2021 COMPARED TO THREE MONTHS ENDED ~~MARCH 31,~~JUNE 30, 2020

The following table sets forth a summary of the Company’s Statements of Consolidated Income and the percentage of net sales for the three months ended ~~March 31,~~June 30, 2021 and 2020. The Company’s past operating results are not necessarily indicative of future operating results.

	Three Months Ended March 31													Three Months Ended June 30
(Thousands of dollars)	2021					2020					Change			2021					2020					Change
Net sales	$	117,553		100.0%		$	102,852		100.0%		$	14,701		$	133,038		100.0%		$	117,629		100.0%		$	15,409
Cost of products sold		77,361			65.8		69,942			68.0		7,419			89,999			67.6		78,063			66.4		11,936
GROSS PROFIT		40,192			34.2		32,910			32.0		7,282			43,039			32.4		39,566			33.6		3,473
Costs and expenses		29,424			25.0		27,757			27.0		1,667			30,301			22.8		24,759			21.0		5,542
OPERATING INCOME		10,768			9.2		5,153			5.0		5,615			12,738			9.6		14,807			12.6		(2,069	)
Other expense, net		(214	)		(0.2)		(49	)		(0.0)		(165	)		(161	)		(0.1)		(922	)		(0.8)		761
INCOME BEFORE INCOME TAXES		10,554			9.0		5,104			5.0		5,450			12,577			9.5		13,885			11.8		(1,308	)
Income tax expense		3,377			2.9		1,451			1.4		1,926			3,686			2.8		3,397			2.9		289
NET INCOME		7,177			6.1		3,653			3.6		3,524			8,891			6.7		10,488			8.9		(1,597	)
Net adjustment attributable to noncontrolling interests		2			0.0		45			0.0		(43	)		(22	)		(0.0)		(7	)		(0.0)		(15	)
NET INCOME ATTRIBUTABLE TO PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS	$	7,179		6.1%		$	3,698		3.6%		$	3,481		$	8,869		6.7%		$	10,481		8.9%		$	(1,612	)

Net sales. Net sales were ~~$117.6~~$133.0 million for the three months ended ~~March 31,~~June 30, 2021, an increase of ~~$14.7~~$15.4 million, or ~~14%~~13%, from the three months ended ~~March 31,~~June 30, 2020. Excluding the favorable effect of currency translation, net sales for the three months ended ~~March 31,~~June 30, 2021 increased ~~$12.9~~$9.2 million compared to the same period in 2020, or ~~13%~~8%, as summarized in the following table:

	Three Months Ended March 31															Three Months Ended June 30
(Thousands of dollars)	2021		2020		Change		Change Due to Currency Translation			Change Excluding Currency Translation			% change			2021		2020		Change			Change Due to Currency Translation		Change Excluding Currency Translation			% change
Net sales
PLP-USA	$	56,231	$	46,601	$	9,630	$	0		$	9,630			21	%	$	62,087	$	53,966	$	8,121		$	0	$	8,121			15	%
The Americas		17,521		17,241		280		(1,802	)		2,082			12			18,625		17,486		1,139			797		342			2
EMEA		23,481		20,360		3,121		1,682			1,439			7			27,352		21,048		6,304			3,106		3,198			15
Asia-Pacific		20,320		18,650		1,670		1,905			(235	)		(1	)		24,974		25,129		(155	)		2,271		(2,426	)		(10	)
Consolidated	$	117,553	$	102,852	$	14,701	$	1,785		$	12,916			13	%	$	133,038	$	117,629	$	15,409		$	6,174	$	9,235			8	%

The year-over-year increase in PLP-USA net sales of ~~$9.6~~$8.1 million, or ~~21%~~15%, was primarily due to a volume increase in communication product sales. International net sales for the three months ended ~~March 31,~~June 30, 2021 experienced a favorable impact of ~~$1.8~~$6.2 million when local currencies were converted to U.S. dollars. The following discussion of net sales excludes the effect of currency translation. The Americas net sales of ~~$17.5~~$18.6 million increased ~~$2.1~~$.3 million, or ~~12%~~2%, primarily due to a volume increase in ~~energy~~communication product sales. EMEA net sales of ~~$23.5~~$27.4 million increased ~~$1.4~~$3.2 million, or 7%15%, primarily due to a volume increase in communication product sales within the region. Asia-Pacific net sales of ~~$20.3~~$25.0 million decreased ~~$.2~~$2.4 million, or 1%10%, compared to 2020 primarily due to a volume decrease in energy products, and partially resulting from the ~~residual~~continuing effects of the disruption to the global economy caused by the COVID-19 pandemic.

Gross profit. Gross profit was ~~$40.2~~$43.0 million and ~~$32.9~~$39.6 million for the three-month periods ended ~~March 31,~~June 30, 2021 and 2020, respectively. Excluding the ~~unfavorable~~favorable effect of currency translation, gross profit increased ~~$6.7~~$1.6 million, or ~~20%~~4%, as summarized in the following table:

	Three Months Ended March 31														Three Months Ended June 30
(Thousands of dollars)	2021		2020		Change		Change Due to Currency Translation			Change Excluding Currency Translation		% change			2021		2020		Change		Change Due to Currency Translation		Change Excluding Currency Translation			% change
Gross profit
PLP-USA	$	21,077	$	17,396	$	3,681	$	0		$	3,681		21	%	$	22,826	$	20,370	$	2,456	$	0	$	2,456			12	%
The Americas		5,544		5,246		298		(509	)		807		15			5,892		5,876		16		327		(311	)		(5	)
EMEA		8,134		5,959		2,175		593			1,582		27			8,325		7,641		684		988		(304	)		(4	)
Asia-Pacific		5,437		4,309		1,128		517			611		14			5,996		5,679		317		585		(268	)		(5	)
Consolidated	$	40,192	$	32,910	$	7,282	$	601		$	6,681		20	%	$	43,039	$	39,566	$	3,473	$	1,900	$	1,573			4	%

PLP-USA gross profit of ~~$21.1~~$22.8 million increased ~~$3.7~~$2.5 million compared to the same period in 2020 mainly as a result of increased sales volume of ~~$9.6~~$8.1 million combined with a product sales mix shift to higher margin product and continued cost containment within ~~material,~~ labor and manufacturing ~~expense.~~expense, offsetting the negative impact of rising commodity prices and inflation. International gross profit for the three months ended ~~March 31,~~June 30, 2021 was favorably impacted by ~~$.6~~$1.9 million when local currencies were translated to U.S. dollars. The following discussion of gross profit excludes the effects of currency translation. The Americas gross profit ~~increase~~decrease of ~~$.8~~$.3 million was primarily the result of ~~a $2.1 million increase in~~relatively flat year-over-year sales ~~combined with a product margin improvement~~ in the region ~~due to~~combined with an unfavorable shift in sales product mix. ~~EMEA’s gross profit increased $1.6 million, mainly as a result~~Despite an increase in sales of ~~$1.4~~$3.2 million, ~~and a shift to higher sales volume in higher margin communication products. Although Asia-Pacific’s sales decreased by $.2 million,~~EMEA’s gross profit ~~increased $.6~~decreased $.3 million, ~~primarily as a~~mainly due to margin pressure associated with rising commodity prices and inflation. Asia-Pacific’s gross profit decrease was the result of ~~continued~~a year-over-year reduction in sales of $2.4 million combined with commodity price increases, partially mitigated by ongoing cost containment initiatives to mitigate the continued effects of the COVID-19 pandemic.

Costs and expenses. Costs and expenses of ~~$29.4~~$30.3 million for the three months ended ~~March 31,~~June 30, 2021 increased ~~$1.7~~$5.5 million, or 6%22%. Excluding the unfavorable effect of currency translation, costs and expenses increased ~~$1.1~~$4.1 million, or 4%16%, as summarized in the following table:

	Three Months Ended March 31																Three Months Ended June 30
(Thousands of dollars)	2021		2020		Change			Change Due to Currency Translation			Change Excluding Currency Translation			% change			2021		2020		Change		Change Due to Currency Translation		Change Excluding Currency Translation		% change
Costs and expenses
PLP-USA	$	13,134	$	13,193	$	(59	)	$	0		$	(59	)		(0	)%	$	14,011	$	11,617	$	2,394	$	0	$	2,394		21	%
The Americas		3,721		3,530		191			(428	)		619			18			3,324		3,182		142		121		21		1
EMEA		6,464		5,601		863			439			424			8			6,784		4,956		1,828		749		1,079		22
Asia-Pacific		6,105		5,433		672			549			123			2			6,182		5,004		1,178		602		576		12
Consolidated	$	29,424	$	27,757	$	1,667		$	560		$	1,107			4	%	$	30,301	$	24,759	$	5,542	$	1,472	$	4,070		16	%

PLP-USA costs and expenses of ~~$13.1~~$14.0 million for the three months ended ~~March 31,~~June 30, 2021 ~~were relatively flat~~increased when compared to the same period in 2020 ~~mainly~~ due to ~~offsetting variances, which included~~$1.4 million in net transactional foreign currency losses, increased commissions of $.5 million, higher personnel-related costs of $.4 million combined ~~lower travel and entertainment and marketing~~with net increases in various expenses ~~partially offset by higher legal and professional fees~~ of ~~$.2 million and higher commissions of $.2~~$.1 million. On a consolidated basis, costs and expenses for the three months ended ~~March 31,~~June 30, 2021 were unfavorably impacted by ~~$.6~~$1.5 million when local currencies were translated to U.S. dollars. The following discussion of costs and expenses excludes the effect of currency translation. The Americas costs and expenses of ~~$3.7~~$3.3 million ~~increased $.6 million for the three months ended March 31, 2021~~were relatively flat when compared to the ~~same~~three-month period ~~in 2020 primarily due to higher personnel-related expense of $.1 million, higher commissions of $.1 million, combined with miscellaneous net increases of $.4 million.~~ended June 30, 2021. EMEA costs and expenses of ~~$6.5~~$6.8 million increased ~~$.4~~$1.1 million mainly due to higher personnel-related expenses of $.5 million, ~~partially offset by lower travel~~$.3 million in net transactional foreign currency losses and ~~entertainment~~$.2 million of increased professional fees and a net increase in various expenses of $.1 million. Asia-Pacific costs and expenses of ~~$6.1~~$6.2 million increased ~~$.1~~$.6 million primarily due to ~~an increase in personnel-related expenses~~unfavorable year-over-year net transactional foreign currency losses of $.4 million ~~increased travel and entertainment expenses~~combined with higher personnel costs of ~~$.1 million and higher legal and professional fees of $.1 million, partially offset by the favorable effect of transactional foreign currency exchange of $.5~~$.2 million.

Other ~~income,~~expense, net. Other ~~income,~~expense, net for the three-month periods ended ~~March 31,~~June 30, 2021 and 2020 was $.2 million and ~~less than $.1~~$.9 million, respectively.

Income taxes. Income taxes for the three months ending ~~March 31,~~June 30, 2021 and 2020 were $ ~~3.4~~3.7 million and ~~$1.5~~$3.4 million, respectively, based on pre-tax income of ~~$10.6~~$12.6 million and ~~$5.1~~$13.9 million, respectively. The effective tax ~~rate~~rates for the three-month periods ending ~~March 31,~~June 30, 2021 and 2020 ~~was 32%~~were 29% and ~~28%~~25%, respectively, compared to the U.S. federal statutory rate of 21%. Our tax rate is affected by recurring items, such as tax rates in foreign jurisdictions and the relative amount of income we earn in those jurisdictions. It is also affected by discrete items that may occur in any given year but are not consistent from year to year.

Net income. As a result of the preceding items, net income for the three months ended June 30, 2021 was $8.9 million, compared to $10.5 million for the three months ended June 30, 2020, a decrease of $1.6 million as summarized in the following table:

PLP-USA’s net income for the three months ended June 30, 2021 increased $.2 million compared to the same period in 2020, primarily due to an increase in operating income of $.2 million combined with an increase in net other income of $.5 million, partially offset by an increase in income tax expense of $.5 million. The following discussion of net income excludes the effect of currency translation. The Americas net income increased $.1 million as a result of a decrease in income tax expense of $.2 million, partially offset by a combined net decrease in operating income and net other income of $.1 million. EMEA net income decreased $1.4 million mainly as a result of a $1.4 million decrease in operating income. Asia-Pacific net income decreased $.8 largely due to a $.8 million decrease in operating income.

The following table sets forth a summary of the Company’s Statements of Consolidated Income and the percentage of net sales for the six months ended June 30, 2021 and 2020. The Company’s past operating results are not necessarily indicative of future operating results.

Net sales. Net sales were $250.6 million for the six months ended June 30, 2021, an increase of $30.1 million, or 14%, from the six months ended June 30, 2020. Excluding the favorable effect of currency translation, net sales for the six months ended June 30, 2021 increased $22.2 million compared to the same period in 2020, or 10%, as summarized in the following table:

The year-over-year increase in PLP-USA net sales of $17.7 million, or 18%, was primarily due to a volume increase in communication product sales. International net sales for the six months ended June 30, 2021 experienced a favorable impact of $8.0 million when local currencies were converted to U.S. dollars. The following discussion of net sales excludes the net effect of currency translation. The Americas net sales of $36.1 million increased $2.4 million, or 7%, primarily due to a volume increase in communication product sales. EMEA net sales of $50.8 million increased $4.6 million, or 11%, primarily due to a volume increase in communication product sales within the region. Asia-Pacific net sales of $45.3 million decreased $2.7 million, or 6%, compared to 2020 primarily due to a volume decrease in energy products, partially resulting from the continuing effects of the disruption to the global economy caused by the COVID-19 pandemic.

Gross profit. Gross profit was $83.2 million and $72.5 million for the six-month periods ended June 30, 2021 and 2020, respectively. Excluding the favorable effect of currency translation, gross profit increased $8.3 million, or 11%, as summarized in the following table:

PLP-USA gross profit of $43.9 million increased $6.1 million compared to the same period in 2020 as a result of increased sales volume of $17.7 million combined with a product sales mix shift to higher margin product and continued cost containment within labor and manufacturing expense, partially offset by commodity price increases and inflation. International gross profit for the six months ended June 30, 2021 was favorably impacted by $2.5 million when local currencies were translated to U.S. dollars. The following discussion of gross profit excludes the effects of currency translation. The Americas gross profit increase of $.5 million was primarily the result of a $2.4 million increase in sales combined with a product margin improvement in the region due to sales product mix. EMEA’s gross profit increased $1.3 million, mainly as a result an increase in sales of $4.6 million and a shift to higher sales volume in higher margin communication products. Despite a reduction in sales, Asia-Pacific’s gross profit increased $.3 million, partially as a result of continued cost containment measures to mitigate the ongoing effects of the COVID-19.

Costs and expenses. Costs and expenses of $59.7 million for the six months ended June 30, 2021 increased $6.7 million, or 13%. Excluding the unfavorable effect of currency translation, costs and expenses increased $4.7 million, or 9%, as summarized in the following table:

PLP-USA costs and expenses of $27.1 million for the six months ended June 30, 2021 increased $1.8 million when compared to the same period in 2020 mainly due to $1.2 of net unfavorable transactional foreign currency losses and increased personnel costs of $.6 million. On a consolidated basis, costs and expenses for the six months ended June 30, 2021 were unfavorably impacted by $2.0 million when local currencies were translated to U.S. dollars. The following discussion of costs and expenses excludes the effect of currency translation. The Americas costs and expenses of $7.0 million increased $.6 million for the six months ended June 30, 2021 compared to the same period in 2020 primarily due to higher personnel-related expense. EMEA costs and expenses of $13.2 million increased $1.5 million mainly due to higher personnel-related expenses of $1.0 million, and $.3 million increase in professional fees combined with $.2 million of net increases in various expenses. Asia-Pacific costs and expenses of $12.3 million increased $.7 million primarily due to an increase in personnel-related expense.

Other expense, net. Other expense, net for the six-month periods ended June 30, 2021 and 2020 was $.4 million and $.5 million, respectively

Income taxes. Income taxes for the six months ended June 30, 2021 and 2020 were $7.0 million and $4.8 million, respectively, based on pre-tax income of $23.1 million and $19.0 million, respectively. The effective tax rate for the six months ended June 30, 2021 and 2020 was 31% and 26%, respectively, compared to the U.S. federal statutory rate of 21%. Our tax rate is affected by recurring items,

such as tax rates in foreign jurisdictions and the relative amount of income we earn in those jurisdictions. It is also affected by discrete items that may occur in any given year but are not consistent from year to year.

On January 1, 2021, wethe Company adopted Account ~~Stands~~Standards Update ~~(“ASU”)~~(ASU) 2019-12, Income Taxes ~~(“ASC 740”) - “Simplifying~~(ASC 740) – Simplifying the Accounting for Income ~~Taxes”,~~Taxes, which simplifies the accounting for income taxes by removing certain exceptions to the general principles in ASC 740 and also clarifies and amends existing guidance to improve consistent application. The adoption of ASU 2019-12 did not result in any material adjustments.

Net income. As a result of the preceding items, net income for the ~~three~~six months ended ~~March 31,~~June 30, 2021 was ~~$7.2~~$16.0 million, compared to ~~$3.7~~$14.2 million for the ~~three~~six months ended ~~March 31,~~June 30, 2020, an increase of ~~$3.5~~$1.9 million as summarized in the following table:

	Three Months Ended March 31																	Six Months Ended June 30
(Thousands of dollars)	2021			2020			Change		Change Due to Currency Translation			Change Excluding Currency Translation		% change				2021			2020			Change			Change Due to Currency Translation			Change Excluding Currency Translation			% change
Net income
PLP-USA	$	5,576		$	3,550		$	2,026	$	0		$	2,026		57		%	$	11,895		$	9,686		$	2,209		$	0		$	2,209			23	%
The Americas		1,192			995			197		(48	)		245		25				3,153			2,690			463			104			359			13
EMEA		1,195			337			858		117			741		220				2,239			2,583			(344	)		287			(631	)		(24	)
Asia-Pacific		(784	)		(1,184	)		400		(41	)		441		(37	)			(1,239	)		(780	)		(459	)		(69	)		(390	)		(50	)
Consolidated	$	7,179		$	3,698		$	3,481	$	28		$	3,453		93		%	$	16,048		$	14,179		$	1,869		$	322		$	1,547			11	%

PLP-USA’s net income for the ~~three~~six months ended ~~March 31,~~June 30, 2021 increased ~~$2.0~~$2.2 million compared to the same period in 2020, primarily due to an increase in operating income of $4.3 million, partially offset by ~~a decrease~~an increase in other ~~income,~~expense, net of ~~$.8~~$.1 million combined with an increase in income tax expense of ~~$1.5~~$2.0 million. The following discussion of net income excludes the effect of currency translation. The Americas net income increased ~~$.2~~$.4 million, mainly as a result of ~~an increase~~decreased income tax expense of $.2 million combined with a decrease in other expense, net of $.3 million, partially offset by a decrease in operating income of ~~$.2~~$.1 million. EMEA net income ~~increased $.7~~decreased $.6 million as a result of a ~~$1.0~~$.2 million decrease in operating income and a $.2 million increase in other operating ~~income, partially offset by~~expense, net, of $.2 million combined with a ~~$.3~~$.2 million year-over-year increase in income tax expense. Asia-Pacific net income ~~increased~~decreased $.4 million largely due to a ~~$.5~~$.4 million decrease in operating ~~expense, partially offset by an increase in income tax expense of $.1 million.~~expense.

Our critical accounting policies are consistent with the information set forth in Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations, included in our Form 10-K for the year ended December 31, 2020 filed on March 5, 2021 with the Securities and Exchange Commission and are, therefore, not presented herein.

We measure liquidity on the basis of our ability to meet short-term and long-term operating needs, repay debt, fund additional investments, including acquisitions, and make dividend payments to shareholders. Significant factors affecting the management of liquidity are cash flows from operating activities, capital expenditures, cash dividends, business acquisitions and access to bank lines of credit.

Our investments include expenditures required for equipment and facilities as well as expenditures in support of our strategic initiatives. During the first ~~three~~six months of 2021, we used cash of ~~$3.5~~$7.3 million for capital expenditures. We ended the first ~~three~~six months of 2021 with ~~$34.7~~$33.5 million of cash, cash equivalents and restricted cash (collectively, “Cash”). Our Cash is held in various locations throughout the world. At ~~March 31,~~June 30, 2021, the majority of our Cash was held outside the United States (“U.S.”). We expect most accumulated non-U.S. Cash balances will remain outside of the U.S. and that we will meet U.S. liquidity needs through future operating cash flows, use of U.S. Cash balances, external borrowings, or some combination of these sources. We complete comprehensive reviews of our significant customers and their creditworthiness by analyzing financial statements for customers where we have identified a measure of increased risk. We closely monitor payments and developments which may signal possible customer credit issues. We currently have not identified any potential material impact on our liquidity from customer credit issues.

Total debt, including notes payable, at ~~March 31,~~June 30, 2021 was ~~$59.3~~$63.4 million. At ~~March 31,~~June 30, 2021, our unused availability under our line of credit was ~~$53.5~~$45.2 million and our bank debt to equity percentage was ~~20.4%~~20.9%. On April 17, 2020, we further extended the term on the line of credit to June 30, 2024. All other terms remain the same, including the interest rate at LIBOR plus 1.125% unless our funded debt to Earnings before Interest, Taxes and Depreciation ratio exceeds 2.25 to 1, at which point the LIBOR spread becomes 1.500%. The line of credit agreement contains, among other provisions, requirements for maintaining levels of net worth and funded debt-to-earnings before interest, taxes, depreciation and amortization along with an interest coverage ratio. The net worth and profitability requirements are calculated based on the line of credit agreement. At ~~March 31,~~June 30, 2021 and December 31, 2020, we were in compliance with these covenants.

We expect that our major source of funding for 2021 and beyond will be our operating cash flows and our existing Cash as well as our line of credit agreement. We earn a significant amount of our operating income outside the U.S., which, except for current earnings in certain jurisdictions, is deemed to be indefinitely reinvested in foreign jurisdictions.

As we cannot predict the duration or scope of the continuing COVID-19 pandemic and its impact on our customers and suppliers, the negative financial impact to our financial results and liquidity cannot be reasonably estimated but could be material. We are actively managing the business to maintain cash flow and secure favorable liquidity position. We believe that our future cash flows, together with these factors, will be more than sufficient to cover debt repayments, other contractual obligations, capital expenditures and dividends for the next twelve months and thereafter for the foreseeable future. In addition, we believe our borrowing capacity provides substantial financial resources, if needed, to supplement funding of capital expenditures and/or acquisitions. We also believe that we can expand our borrowing capacity, if necessary, however, we do not believe we would increase our debt to a level that would have a material adverse impact upon results of operations or financial condition.

Cash ~~increased $.6~~decreased $3.1 million compared to the same period in 2020. Net Cash provided by operating activities was ~~$13.2~~$14.1 million. The most significant net investing and financing uses of Cash in the ~~three~~six months ended ~~March 31,~~June 30, 2021 were payments of long-term debt of ~~$27.1~~$53.0 million, capital expenditures of ~~$3.5~~$7.3 million, share repurchases of ~~$3.7~~$4.7 million and dividends paid of ~~$1.1~~$2.1 million, partially offset by net debt and notes payable proceeds of ~~$11.4~~$40.8 million. Currency had a positive ~~$.2~~$.3 million impact on Cash when translating foreign denominated financial statements to U.S. dollars.

Net Cash provided from operating activities for the ~~three~~six months ended ~~March 31,~~June 30, 2021 was ~~$13.2~~$14.1 million compared to ~~a use of $3.1~~$9.2 million in the comparable prior year ~~three-month~~six-month period. The ~~$16.3~~$4.9 million improvement was primarily a result of an increase in net income of ~~$3.5~~$1.9 million, an increase in cash provided by non-cash items of ~~$4.7~~$2.4 million and an increase in Cash provided by operating assets (net of operating liabilities) of ~~$8.1~~$.5 million which included the ~~$6.8~~$6.5 million deposit on the new corporate aircraft that was paid in the fourth quarter of 2020 and fully refunded in ~~2021.~~2021, partially offset by increases in working capital aligned with favorable year-over-year sales.

Net Cash used in investing activities of ~~$3.5~~$7.3 million for the ~~three~~six months ended ~~March 31,~~June 30, 2021 decreased ~~$2.5~~$4.5 million when compared to Cash used in investing activities in the ~~three~~six months ended ~~March 31,~~June 30, 2020 of ~~$6.0~~$11.8 million. The change was primarily related to a year-over-year decrease in capital expenditures.

Cash used in financing activities for the ~~three~~six months ended ~~March 31,~~June 30, 2021 was ~~$20.5~~$18.7 million compared to Cash provided by financing activities of ~~$5.7~~$.7 million during the ~~three~~six months ended ~~March 31,~~June 30, 2020. The ~~$26.2~~$19.4 million change was primarily the result of a net decrease in net debt borrowings, net of payments in 2021 compared to ~~2021~~2020 of ~~$26.3~~$21.8 million, partially offset by a decrease in net share repurchases and issuances of ~~$.1~~$2.3 million.

We have commitments under operating leases, primarily for office and manufacturing space, transportation equipment, office and computer equipment and capital leases primarily for equipment. See Note Q of the Notes to the Consolidated Financial Statements for more information.

As of ~~March 31,~~June 30, 2021, the Company had total outstanding guarantees of ~~$6.9~~$7.5 million. Additionally, certain domestic and foreign customers require the Company to issue letters of credit or performance bonds as a condition of placing an order. As of ~~March 31,~~June 30, 2021, the Company had total outstanding letters of credit of ~~$9.1~~$4.5 million.

Cautionary Statement for “Safe Harbor” Purposes Under The Private Securities Litigation Reform Act of 1995

This Form 10-Q and other documents we file with the SEC contain forward-looking statements regarding the Company’s and management’s beliefs and expectations. As a general matter, forward-looking statements are those focused upon future plans, objectives or performance (as opposed to historical items) and include statements of anticipated events or trends and expectations and beliefs relating to matters not historical in nature. Such forward-looking statements are subject to uncertainties and factors relating to the Company’s operations and business environment, all of which are difficult to predict and many of which are beyond the Company’s control. Such uncertainties and factors could cause the Company’s actual results to differ materially from those matters expressed in or implied by such forward-looking statements.

The following factors, among others, could affect the Company’s future performance and cause the Company’s actual results to differ materially from those expressed or implied by forward-looking statements made in this report:

The Company operates manufacturing facilities and offices around the world and uses fixed and floating rate debt to finance the Company’s global operations. As a result, the Company is subject to business risks inherent in non-U.S. activities, including political and economic uncertainty, import and export limitations and market risk related to changes in interest rates and foreign currency exchange rates. The Company believes that the political and economic risks related to the Company’s international operations are mitigated due to the geographic diversity in which the Company’s international operations are located.

Effective July 1, 2018, Argentina was designated as a highly inflationary economy as the projected three-year cumulative inflation rate exceeded 100%. As such, beginning July 1, 2018, the functional currency for the Company’s Argentina subsidiary became the U.S. dollar. Revenue from operations in Argentina represented less than 1% of total consolidated net sales for both ~~three-month~~six-month periods ended ~~March 31,~~June 30, 2021 and 2020.

As of ~~March 31,~~June 30, 2021, the Company had ~~$.1~~$.2 million in net foreign currency forward exchange contracts outstanding. The Company does not hold derivatives for trading purposes.

The Company’s primary currency rate exposures are related to foreign denominated debt, intercompany debt, foreign denominated receivables and payables and cash and short-term investments. A hypothetical 10% change in currency rates would have a favorable/unfavorable impact on fair values on such instruments of ~~$4.3~~$5.0 million and a $.6 million favorable/unfavorable impact on income before ~~taxes of $.2 million.~~at June 30, 2021.

The Company is exposed to market risk, including changes in interest rates and foreign exchange rates since we conduct business in a variety of foreign currencies. The Company is subject to interest rate risk on its variable rate revolving credit facilities and term notes, which consisted of long-term borrowings, which includes the current portion, of ~~$46.4~~$48.8 million at ~~March 31,~~June 30, 2021. A 100 basis point increase in the interest rate would have resulted in an increase in interest expense of approximately $.6 million for the ~~three~~six months ended ~~March 31,~~June 30, 2021.

As discussed elsewhere in this report, the outbreak of COVID-19 could negatively impact the Company’s business and results of operations. Since we cannot predict the duration or scope of the COVID-19 pandemic, the potential negative financial impact to the Company’s results cannot be reasonably estimated but could be material.

The Company’s Principal Executive Officer and Principal Accounting Officer have concluded that the Company’s disclosure controls and procedures as defined in Rule 13a-15(e) or Rule 15d-15(e) of the Securities Exchange Act of 1934, as amended, were effective as of ~~March 31,~~June 30, 2021.

There were no other changes in the Company’s internal control over financial reporting (as defined in Rule 13a-15(f) and 15d-15(f)) of the Securities and Exchange Act of 1934, as amended, during the three-month period ended ~~March 31,~~June 30, 2021 that materially affected or are reasonably likely to materially affect the Company’s internal control over financial reporting.

The Company is and may in the future be party to a variety of pending legal proceedings and claims arising in the normal course of business, including, but not limited to, litigation relating to employment, workers’ compensation, product liability, environmental and intellectual property. The Company has liability insurance to cover many of these claims.

The Company and its subsidiaries, Helix Uniformed Ltd. (“Helix”) and Preformed Line Products (Canada) Limited (“PLPC Canada”), were each named, jointly and severally, with each of SNC-Lavalin ATP, Inc. (“SNC ATP”), HD Supply Canada Inc., by its trade names HD Supply Power Solutions and HD Supply Utilities (“HD Supply”), and Anixter Power Solutions Canada Inc. (the corporate successor to HD Supply), “Anixter” and, together with the Company, PLPC Canada, Helix, SNC ATP and HD Supply, the (“Defendants”) in a complaint filed by Altalink, L.P. (the “Plaintiff”) in the Court of Queen’s Bench of Alberta in Alberta, Canada in November 2016 (the “Complaint”).

There were no material changes from the risk factors previously disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 filed with the SEC on March 5, 2021. In addition, the impact of COVID-19 could potentially exacerbate other risks discussed, any of which could have a material adverse effect on the Company. The situation continues to change and additional impacts may arise that the Company is not aware of currently.

On March 16, 2020, the Board of Directors authorized a plan to repurchase up to an additional 235,625 of Preformed Line Products Company common shares, resulting in a total of 250,000 shares available for repurchase with no expiration date. The following table reflects repurchases for the three-month period ended ~~March 31,~~June 30, 2021:

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Ohio		34-0676895
(State or Other Jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification No.)

660 Beta Drive Mayfield Village, Ohio		44143
(Address of Principal Executive Office)		(Zip Code)

Title of each class		Trading Symbol		Name of exchange on which registered
Common stock, par value $2.00 per share		PLPC		NASDAQ

		Page

Part I - Financial Information

Item 1.	Financial Statements	3

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	1921

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	2631

Item 4.	Controls and Procedures	2731

Part II - Other Information

Item 1.	Legal Proceedings	2832

Item 1A.	Risk Factors	2832

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	2933

Item 3.	Defaults Upon Senior Securities	2933

Item 4.	Mine Safety Disclosures	2933

Item 5.	Other Information	2933

Item 6.	Exhibits	2933

SIGNATURES		3034

	Foreign Currency Impact
	Three Months Ended March 31
(Thousands of dollars)	2021			2020
Operating income	$	10,768		$	5,153
Translation gain		(40	)		0
Transaction loss		615			1,792
Net gain on forward currency contracts		(327	)		(1,125	)
Operating income excluding currency impact	$	11,016		$	5,820

	Foreign Currency Impact
	Three Months Ended June 30						Six Months Ended June 30
(Thousands of dollars)	2021			2020			2021			2020
Operating income	$	12,738		$	14,807		$	23,506		$	19,451
Translation gain		(429	)		0			(469	)		0
Transaction (gain) loss		(441	)		(400	)		173			1,392
Net loss (gain) on forward currency contracts		1,266			221			938			(904	)
Operating income excluding currency impact	$	13,134		$	14,628		$	24,148		$	19,939

	Six Months Ended June 30, 2021
Product Type	PLP-USA			The Americas			EMEA			Asia-Pacific			Consolidated
Energy		59	%		70	%		55	%		67	%		61	%
Communications		36			26			39			5			30
Special Industries		5			4			6			28			9
Total		100	%		100	%		100	%		100	%		100	%


	Six Months Ended June 30, 2020
Product Type	PLP-USA			The Americas			EMEA			Asia-Pacific			Consolidated
Energy		64	%		76	%		57	%		74	%		67	%
Communications		30			18			35			4			24
Special Industries		6			6			8			22			9
Total		100	%		100	%		100	%		100	%		100	%

	Six Months Ended June 30, 2021									Six Months Ended June 30, 2020
	Defined benefit pension plan activity			Currency Translation Adjustment			Total			Defined benefit pension plan activity			Currency Translation Adjustment			Total
Balance at January 1	$	(6,704	)	$	(47,847	)	$	(54,551	)	$	(5,671	)	$	(51,682	)	$	(57,353	)
Other comprehensive loss before reclassifications:
Loss on foreign currency translation adjustment		0			(518	)		(518	)		0			(11,409	)		(11,409	)
Amounts reclassified from AOCI:
Amortization of defined benefit pension actuarial gain (a)		227			0			227			189			0			189
Net current period other comprehensive income (loss)		227			(518	)		(291	)		189			(11,409	)		(11,220	)
Balance at June 30	$	(6,477	)	$	(48,365	)	$	(54,842	)	$	(5,482	)	$	(63,091	)	$	(68,573	)

Description	Balance as of December 31, 2020		Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Foreign currency forward contracts	$	359	$	0	$	359	$	0
Total Assets	$	359	$	0	$	359	$	0

Liabilities:
Supplemental profit sharing plan	$	7,143	$	0	$	7,143	$	0
Foreign currency forward contracts		56		0		56		0
Total Liabilities	$	7,199	$	0	$	7,199	$	0

Period	Total Number of Shares Purchased		Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs		Maximum Number of Shares that may yet be Purchased under the Plans or Programs
January		1,160	$	66.01		106,606		143,394
February		29,676		69.19		136,282		113,718
March		21,754		71.18		158,036		91,964
Total		52,590

~~10.1~~		~~Promissory Note dated December 31, 2020, between the Company and PNC Bank National Association (incorporated by reference to the Company’s 10-K filed for the year ended December 31, 2020)~~

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 Accounting Officer, Andrew S. Klaus, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith.

32.1		Certifications of the Principal Executive Officer, Robert G. Ruhlman, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, furnished.

32.2		Certifications of the Principal Accounting Officer, Andrew S. Klaus, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, furnished.

101.INS		Inline XBRL Instance Document.

101.SCH		Inline XBRL Taxonomy Extension Schema Document.

101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document.

101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document.

101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document.

101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document.

104		Cover Page Interactive Data (embedded with the Inline XBRL document.

~~April~~July 30, 2021		/s/ Robert G. Ruhlman
		Robert G. Ruhlman
		Chairman, President and Chief Executive Officer
		(Principal Executive Officer)

~~April~~July 30, 2021		/s/ Andrew S. Klaus
		Andrew S. Klaus
		Chief Financial Officer
		(Principal Accounting Officer)

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