Napa Auto Parts 2008 Annual Report Download - page 14

EIS provides our suppliers an extensive distribution network of 36 locations,
including 33 stocking locations in the U.S., Puerto Rico, Dominican Republic,
Mexico and Canada, as well as three plants strategically located in North America
that provide value added fabricated material to our customers. Combined, these
locations offer our customers access to complete inventories, capable people and a
comprehensive range of innovative logistics services.
2008 performance Total revenues in 2008 increased by 7% for the
second consecutive year. We are pleased with this continued level of growth,
especially in a year of weakening economic conditions. Our ongoing commitment
to key sales initiatives and continued focus on cost management and operational
process improvement drove our improved operating performance in 2008.
Our focus on new products and markets, geographic expansion, operational
excellence and strategic customer and supplier relationships serve as key growth
initiatives at EIS. ese initiatives have strengthened our position as a preferred
source for materials, supplies, parts and systems at electrical and assembly manu-
facturers throughout North America.
new products and market opportunities We continue
to add new product lines such as an expanded offering of adhesives, tapes and
silicones for the electrical OEM and apparatus repair industries. EIS has also
improved our MRO supplies and lead wire offering. Furthermore, we continue to
explore adjacent markets, such as wire and cable, which offer large opportunities
for future growth.
In addition, we have further broadened our fabrication capabilities in traditional
electrical markets as well as new and adjacent markets. We made good progress in
penetrating the solar market in 2008, and we are encouraged by the new growth
opportunities in both the solar and wind turbine energy sectors.
strategic acquisitions We continue to improve our North Ameri-
can distribution footprint and in 2008 we expanded our electrical business into
Arkansas via the acquisition of C.H. Clowers Supply Company. Also, we expect
the evolving electrical and assembly markets in Canada, Mexico and the Carib-
bean to grow faster than the overall industry and we have plans for additional
business expansion in each of these areas.
operational excellence EIS has employed Operational Excellence,
a continuous improvement program, to address and solve business operational
issues. is disciplined approach to process improvement has resulted in increas-
ingly efficient operations and contributed to our improved operating performance
again in 2008. We see further opportunities for improvement in 2009.
strategic alliances with customers and suppliers
Initiatives to align EIS with strong customer and supplier relationships further
enhance our long-term growth strategy. rough closer supplier relationships
and continued focus on our top customers, we aim to differentiate EIS through
product, technical and service solutions that meet our customers’ unique require-
ments. Our standards for high performance make us a preferred source in the
marketplace and position EIS for continued growth.
outlook Our strategic initiatives to successfully compete in core, new and
adjacent markets provide EIS with additional opportunities to grow revenues in
2009 and beyond. We will support this sales growth with a continued focus on
cost management and high performance operational processes to ensure ongoing
improvement in our earnings results.
electrical/electronics materials group
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, apparatus repair and assembly markets.
group highlights
-leading north american distributor to the electrical
OEM, apparatus repair and assembly markets
-extensive distribution network of 33 stocking locations
and three value-add fabrication plants
-complete inventories, capable people and comprehensive
range of logistics services
-expanded product line offering
-broadening fabrication capabilities
-growing north american footprint via strategic acquisitions
-strengthened customer and supplier relationships
electrical/electronics materials group
net sales
in millions of dollars
04 05 06 07 08
336 342
408 436
466
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