Houston Wire & Cable Co., Houston, reported sales in the third quarter of 2009 of $63.6 million, up 2.7% from the second quarter of 2009 but down 35.7% when compared to the third quarter of 2008. HWC said the sales decline from 2008 was due to the current economic conditions, which curtailed product demand and average copper prices, which were 20% lower. The decrease in copper prices is estimated to have accounted for almost one-half of the sales decline.
Sales in HWC’s MRO business, and within the company’s five growth initiatives — emission controls, engineering and construction, industrials, LifeGuard and utility power generation –decreased from the prior year period. After adjusting for copper deflation, the company estimated its MRO business declined between 10% to 20%, while sales from its growth initiatives were essentially flat.
Said Chuck Sorrentino, president and CEO, “We continue to be faced with weakened industrial demand due to depressed economic conditions, but are pleased to have experienced a slight increase in sequential sales during the quarter. Operating expenses have now reached their lowest level since our IPO in 2006. In spite of the business conditions net income for the third quarter was up 21% sequentially. We continue to remain focused on market share gains and added approximately 50 new customers in the third quarter of 2009.”
Archive for November, 2009
HWC enjoys 2.7% Bump in 3Q Sales
Rockwell Earnings Drop 77% YTY in 3Q
Rockwell Automation, Milwaukee, had a tough third quarter and according to a Reuters report. CEO Keith Nosbusch said the automation giant’s initial fiscal 2010 profit forecast in a wide range that called for anything from an 11 percent rebound to a 19 percent drop. According to that report he told analysts on a conference call, “At this point, we would characterize business conditions as stable, but at demand levels well below the peak of the cycle. We expect a recovery, but no one knows what the shape of the recovery will be.”
Cree to Expand LED Manufacturing in China
LED manufacturer Cree Inc. Durham, N.C., is purchasing a 592,000-square-foot facility in Huizhou, Guangdong Province, China. The facility will be Cree’s first chip production facility outside of North America and is targeted to also house future components manufacturing expansion. More than half of Cree’s employees work in China, mostly at the current Huizhou factory.
LEDNovation Hires Bill Blackley as V.P. of Business Development
LEDnovation (Tampa, Fla.): Bill Blackley has joined the company as V.P. of business development. He has 20 years of lighting experience and most recently was with Nexxus Lighting, where he was vice president. He has also held senior management posts at Vossloh-Schwabe (Matsushita Electric) and Acuity Brands Lighting (Holophane).
Founder of Tampa’s Electric Supply Inc., Passes Away
George Morgan Adams, Sr., founder of Electric Supply Inc., Tampa., Fla., passed away on Oct. 25. He was born in Jemison, Ala., came to Tampa in 1936, enlisted in the U.S. Navy during W.W. II and served as a radioman on a PBY seaplane. After a 24-year career with Florida Electric, he founded Electric Supply Inc., in 1970. Until his recent illness, Mr. Adams was active in his church, community and business. He always made time for family and friends. Adams received various business honors including the first Florida Family Business of the Year Award and an official visit and award from U.S. Secretary of Commerce Donald Evans. He was a leader in numerous community organizations, serving as an elder at Hyde Park Presbyterian Church, president and lifetime member of the Tampa Jaycees, and exalted ruler of the Tampa Elks Club. Mr. Adams is preceded in death by his wife of 53 years, Pauline, and is survived by his son George, Jr., president, Electric Supply Inc., and his daughter Sandra A. Brock.
Quanta CEO Sees “Meaningful Recovery” in 2nd Half of 2010
Quanta Services Inc., Houston, is suffering through 2009 YTY sales declines like most companies, but its CEO sees better days ahead late next year. While third-quarter revenues for the utility services contractor were down 26 percent to $780.8 million from 1.05 billion in 3Q 2008, net income for the quarter was $63.4 million, up 22 percent from $51.9 million, in the same quarter last year. Said John Colson, Quanta’s chairman and CEO, “The slow economy continues to negatively affect the industries we serve and our revenues. While the first quarter of 2010 may be challenging, we expect a meaningful recovery in the second half of next year as spending by our customers returns.”
Quanta’s 3Q Earnings Report
Brand Takes On Additional Responsibilties at USESI
USESI Inc. (Exton, Pa.): Carl Brand is now V.P. of Vendor Relations and will retain his current responsibilities as the president of Electrical Wholesalers and Standard Electric Supply of Massachusetts, New Hampshire and Rhode Island. He has more than 30 years of industry experience and an expertise in Central Distribution Center (CDC) operations and procurement.
In other news at USESI, Randy Moore has been promoted from head of vendor relations to president of Electrical Wholesalers of Florida, and Steve Valcourt was been appointed Vice President, Procurement for USESI Region 1 (Northern New England) and Region 2 (Southern New England), effective Sept. 15. He is focusing on the efficient and effective operations of the procurement functions for Electrical Wholesalers, Standard Electric Supply and Hampden Zimmerman in Massachusetts, Rhode Island, New Hampshire and Connecticut. He reports to a USESI executive committee comprised of Carl Brand, Ted Dlugolecki, John Reznick, Mark Lauria and Richard Worthy and is based out of Stoughton, Mass.
Acuity Brands to License Philips LED Technology
Philips Eindhoven, the Netherlands, and Acuity Brands Inc., Atlanta, have entered into a license agreement allowing Acuity Brands to access Philips’ LED-based patent portfolio. Philips makes its patent portfolio for LED systems and controls available via a licensing program to third parties in order to foster industry growth.
The agreement will apply to worldwide sales of LED-based luminaires developed and marketed by all of the Acuity Brands businesses. Through the agreement, Acuity Brands will be able to incorporate Philips’ patented technologies related to the development and digital control of LED systems for general lighting, architectural and theatrical applications.
See this week’s issue of Electrical Marketing for more details.
Good News for Builders: New Home Inventory Down Again in September
A report in the Oct. 30 Eye on the Economy e-mail newsletter published by the National Association of Home Builders (NAHB), Washington, D.C., said new home inventory in Sept. 2009 was down by more than half to 251,000, the lowest level since November 1982. New home inventories peaked at 572,000 in July 2006. There was a 7.5 months’ supply of unsold homes in September, down from an all-time of 12.4 months in January of this year. The inventory has declined by almost 100,000 additional units from the 340,000 new homes on the market in the first month of the year, which in healthier times would have been a near-normal level. NAHB said the fact that the months’ supply was running at a somewhat elevated level in September when the inventory was below normal levels clearly indicates that the major problem facing the housing market is no longer oversupply, but weak demand.
Summit expands in New Orleans
Summit Electric Supply, based in Albuquerque, N.M., has expanded its presence in the New Orleans market. The electrical distributor’s 32,500-square-foot location at 5601 Caterpillar Point in Harahan, original home of its marine division, has been turned into a full-service branch with electrical products for commercial and industrial customers. The location now offers counter service, job-site delivery and 24/7 emergency service.