Napa Auto Parts 2006 Annual Report Download - page 14

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Electrical/Electronic
Materials Group
EIS    N A’    , 
,       . P   EIS 
  ,      .
EIS off ers cost eff ective distribution services through a network of 34
stocking and sales locations in the U.S., Mexico and Canada.  ese
locations provide our customers access to complete inventories, capable
people and a comprehensive range of innovative logistics services.
2006 Performance
Total revenues increased by 20% in 2006.  e strong sales growth
refl ects favorable market conditions, evident through continued
manufacturing expansion in the U.S., as well as our commitment
to on-going sales initiatives. Other initiatives involving cost manage-
ment and operational process improvement have allowed us to grow
our operating profi t and margin at a healthy rate, thus improving
our operating performance in 2006.
Our focus on new products, geographic expansion and customer
growth serve as key growth initiatives at EIS.  ese initiatives have
positioned EIS as the “one source” for process materials, production
and MRO supplies at electrical and electronic assembly manufacturers
throughout North America.
New Products
We continue to add new product lines such as motors for the apparatus
repair industry and MRO supplies for all of our customers. In addition,
we represent new thermal management products and continue to
upgrade and expand our off ering of silicones and greases. Furthermore,
our initiatives to expand and grow our fabrication solutions for tradi-
tional electrical and new assembly markets are encouraging.
Geographic Expansion
Another source of growth for EIS has been geographic expansion beyond
the U.S., where we continue to improve our North American distribution
footprint. With three locations in Mexico and one location in Canada,
we are better positioned to recognize the growth opportunities in their
evolving electrical and assembly markets.
Key Account Development Tools
Initiatives to grow sales with key customers represent another source for
sales growth. In 2006, we completed phase one of a sales process restructur-
ing program designed to maximize customer growth through more focused
contact with our accounts. We also off er a number of services to provide
solutions to our customers’ unique requirements. Our proprietary inventory
management systems (AIMS) as well as other product, technical and service
solutions further strengthen EIS as our customers’ “one source” supplier.
2007 Outlook
At EIS, we believe our strategic initiatives, as well as market conditions,
provide us with additional opportunities to grow revenues and improve
operating performance. We continue to implement our strategic plans to
capitalize on these opportunities and make 2007 another good year for
the Company.
20%increaSeinrevenueS
newproDuctS
geographicexpanSion
keyaccountDevelopment
proprietaryinventorymanagementSyStemS(aimS)
proDuct,technicalanDServiceSolutionS
StrengtheneDaS“oneSource”Supplier
2006 Highlights
Electrical/Electronic Group
Net Sales in millions of dollars
316
02 03 04 05 06
298
336 342
408
12