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Encore Wire (WIRE)
Copper prices soared in 2005, but that didn't close the curtains on Encore Wire. A Delaware corporation based in McKinney, Tex., the low-cost manufacturer of copper wire and cable saw the price of its chief commodity jump 28%. Despite higher production costs, net sales rose by 26%, pushing total revenues to $758 million. Thanks in part to a hungry housing market, average annual profits have risen 106% over the past three years. Encore's strategy: maintain sufficient inventories for lightning-fast delivery to customers, mostly wholesale electrical distributors that like to save money by keeping inventories low. When a 160,000 square feet expansion opens later this year, Encore will be ready for a second act.
Company Info |
|
| 2005 Rank | NR |
| Market Value* ($ Millions) | 971.9 |
| Sales* ($ Millions) | 872.9 |
| Sales Growth (3-yr. avg. annual) |
40.2 % |
| Profits* ($ Millions) | 65.2 |
| Profit Growth (3-yr. avg. annual) | 106.0 % |
| Return on Inv. Capital (3-yr.) | 13.3 % |
| Share Price 12-Mo. Hi/Lo | 44/9 |
| Share Price As of 4/28/06 | 42 |
| Return on Equity | 28.6 % |
| P/E Ratio | 15 |
| No. of Employees | 686 |
| Industry | Electrical Components & Equipment |
| CURRENT MARKET INFO | WIRE > |
| COMPANY WEB SITE > | |
| Location | Mc Kinney, Tex. |
| Phone | 972 562-9473 |
*Trailing 12 months
Stock price data as of 4/28/06
DATA: Standard & Poor's Compustat
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Company Snapshot
Encore Wire manufactures copper electrical building wire and cable in the U.S. The company supplies residential wire and commercial wire. Its residential wire product line, which consists primarily of NM-B cable, a nonmetallic sheathed cable used primarily as interior wiring in homes, apartments, and manufactured housing; and UF-B cable, an underground feeder cable used to conduct power underground to outside lighting and other applications remote from residential buildings. Both NM-B cable and UF-B cable are composed of two or three PVC insulated copper wire conductors, with or without an uninsulated ground wire, sheathed in a polyvinyl chloride jacket. Encore Wire's commercial product line consists primarily of THWN-2 cable, which is used principally as feeder, circuit, and branch wiring in commercial and industrial buildings. It is composed of a single conductor, either stranded or solid, and insulated with PVC, which is further coated with nylon. The company also purchases small quantities of other types of wire to resell to the customers that buy its products. Its sells its wire products to wholesale electrical distributors and retail home improvement centers primarily through manufacturers' representatives. Encore Wire was founded by Vincent A. Rego. The company was incorporated in 1989 and is based in McKinney, Tex.
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