Napa Auto Parts 2005 Annual Report Download - page 14

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Electrical/Electronic Materials Group
EIS offers cost effective distribution services through a network of 34
stocking locations in the U.S., Mexico and Canada. Each EIS location
provides access to complete inventories, capable people and a com-
prehensive range of innovative logistics services to streamline the
procurement process.
2005 PERFORMANCE
Total revenues increased by 2% for the year,including the impact of
the sale of our Circuit Supply division in March of 2005. Sales for our
on-going operations were much stronger,improving by 9%. In addi-
tion to sales growth, initiatives to improve sales margins and increase
productivity resulted in an improved operating performance for the year.
GROWTH INITIATIVES
Our focus on new products, new sales opportunities and new services
has positioned EIS as the “one source” for process materials, produc-
tion and MRO supplies.
In recent years, we have added new
product lines such as motors for the
apparatus repair industry and MRO
supplies for all of our customers. In
addition, we now represent new ther-
mal management products and we
continue to upgrade and expand our
offering of silicones and greases.
Furthermore, our initiatives to expand
and grow our fabrication solutions for
both our traditional and new markets
have been extremely encouraging.
Another source of growth for us has been new sales opportunities
beyond the U.S., where we continue to improve our North American
distribution footprint. During the year,we expanded our presence in
Canada and Mexico and we are encouraged by the growth opportu-
nities in their electrical and assembly markets.
Wehave also experienced growth through a number of new services
designed to offer solutions to our customer’sunique requirements. For
example, our advanced inventory management solutions (AIMS) utilizes
hardware and software tools to reduce the customer’soverall inventory
management costs. This and other product, technical and service solu-
tions further strengthen EIS as our customers’ “one source” supplier.
OPPORTUNITIES IN 2006
EIS will continue to focus on initiatives to grow revenues and
improve operating performance. Weare encouraged by the future
of the industry and EIS is well positioned to make 2006 another
good year for the Company.
EIS IS ONE OF NORTH AMERICA’S LEADING DISTRIBUTORS OF PROCESS MATERIALS,
PRODUCTION SUPPLIES, INDUSTRIAL MRO AND VALUE ADDED FABRICATED PARTS.
PRIMARY MARKETS FOR EIS ARE THE ELECTRICAL OEM, MOTOR APPARATUS REPAIR
AND ASSEMBLYMARKETS.
2001
388
2002
316
2003
298
2004
336
2005
342
Electrical/Electronics Group
Net Sales
in millions of dollars
POSITIVE INDUSTRY TRENDS
➔Continued manufacturing expansion, as reflected in
the strength of the Institute of Supply Management’s
Purchasing Managers Index
➔Strong and steady capacity utilization rates for
manufacturers