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Distributor News: 3.15.2011

Published 3/16/2011 5:47:54 PM

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Graybar’s Year: $4.6 billion In Sales

With $4.6 billion in 2010 sales, Graybar posted a 5.4% increase over 2009’s results. The company said in its release that Q4 sales, at $1.24 billion, were up almost 15%.

From Robert Reynolds Jr., the company’s chairman, president, and CEO: “After a slow start, momentum began to build in our markets and we capitalized on this opportunity….Our performance in 2010 resulted from improving conditions and a consistent focus on our long-term view of our business….The company is well positioned for anticipated growth in 2011, as we continue to work to our customers’ advantage.”

Here are Graybar’s sales in 2010 by quarter, according to the 10-K it filed with the SEC:

Q1—$1.001 billion

Q2—$1.131 billion

Q3—$1.249 billion

Q4—$1.235 billion

A few other notes from the 10K:

  • Backlog at Dec. 31, 2010 was $604 million, up 14.7% from one year earlier.
  • 53% of products sold in 2010 came from the company’s top 25 suppliers.
  • Graybar said that it “estimates that the five largest wholesale distributors account for approximately 28% of the total market” for electrical and datacom products.

Other Graybar news:

Funding for research—Graybar donated $250,000 to ELECTRIC International, the research arm of the organized electrical construction industry, “in recognition of products purchased by NECA contractors through Graybar and Graybar ESP manufacturers from Feb. 2, 2010, to Nov. 30, 2010.

Member of the Year—according to Courant.com, the Independent Electrical Contractors of New England in December presented Graybar with the 2010 Associate Member of the Year award.

Public contracts won by Graybar

  • Adams State College said on Dec. 10, 2010, that it awarded an $11,800 contract to Graybar “for liquid-filled pad-mounted transformers.”
  • The Defense Logistics Agency awarded a $37,788 contract to Graybar for circuit breakers (March 8)
  • The Defense Supply Center awarded a $47,915.76 contract to Graybar for circuit breakers (Jan. 10).
  • Stevens Point, Wis., awarded a street lighting contract to Graybar for $45,080, according to the local newspaper (Feb. 22).


Electrical/Datacom

AAI—a Feb. 27 Post Standard article (we couldn’t find it online) discussed how Auburn Armature Inc. “changed from a small private company that primarily rebuilt electric motors to a much larger company that today derives most of its business from sales and distribution of commercial and industrial electrical products.”

            AAI’s annual sales last year were “significantly north of $40 million,” according to Mike Capocefalo, owner and president (and son of John, who founded the company in 1949). In 1998, when the company moved into a $2.5 million facility, sales were $7 million, according to the newspaper.

ALL INDUSTRIAL E.S.—All Industrial Electrical Supply (Burlingame, Calif.) and Consolidated Parts (Santa Clara, Calif.) have received $5.8 million in financing from Bridge Bank. Release. From Alex Vaysberg, president of the electrical distributor and managing partner for Parts, which provides HVAC supplies: “We deliberated a long time on this issue and have decided to switch our banking relationship to Bridge. It was definitely a hard decision, as our current bank has treated us well. But we must do what is best in the long term for our businesses.”

BUCKLES-SMITH—the company has strengthened its team in Monterey County (Calif), it said, adding Pat Ballew and Aimee Eala as account managers, Eric Ramos as project manager, and Alex Molina as inside sales rep—who have a collective 55 years of electrical industry experience. The company said it would expand its existing Salinas facility “to accommodate additional on-hand inventory to meet the same-day delivery needs of customers in the local market.”

   110315dnews1
Caption provided by Buckles-Smith:
Buckles-Smith Salinas Service Center New Hires. 
Front row, left-to-right: Bill Edwards, Aimee Eala, Caroline Foster, Eric Ramos.
 
Back row: Alex Molina, Patrick Ballew, Justin Esteban
.

            According to the release: (1) Adding the four people “facilitates continuity of service to customers formerly served by Central Wholesale,” which said in January that it would cease operations; and (2) Buckles-Smith, founded in 1939, is the oldest electrical distributor in Northern California.

ECHO E.S.—Echo Electric Supply and Plymouth Electric were identified by KWBE-AM as owners of material inside a building in Beatrice, Neb. “The material was being stored there for the new Beatrice Community Hospital, under construction,” according to the report.

FROST—a release posted to PRWeb.com from Frost informed readers that the downtown St. Louis branch “now boasts an impressive Bosch Tool Center within the store”—something that “sets Frost apart as one of only three Bosch Systems Specialist dealers in Missouri.”

RESCO—Rural Electric Supply Cooperative of Moorhead, Minn. will supply three-phase transformers for a project in Madison S.D., despite being second lowest in the bidding (at $65,500), according to The Madison Daily Leader. WESCO was lowest at $64,300. “RESCO was the chosen supplier because the cooperative’s evaluation price of $123,000 for CG Power transformers was lower than the bids from the other suppliers,” according to the article. “WESCO offered the second-lowest evaluation bid of $126,000 for General Electric equipment.”

TALLADEGA E.Sa local newspaper article that pushed “local business and individuals” to help the Talladega (Fla.) High School baseball booster club noted that lighting problems at the team’s ballpark—bulbs blown out by storms—“were donated…last year by Talledega Electrical Supply.”

TELECOM E.S.—Telecom Electric Supply was one of three winners of the Omnis Award from Oncor in that company’s supplier diversity recognition program. More.

WESCO—the company has completed its succession effort (first discussed in 2009), with Roy Haley ending his term as board chairman on May 25. John Engel, who has been president and CEO, will add the chairman’s title on that date, the company said.

            From the retiring Haley, as quoted by the Pittsburgh Business Times (March 10)—this was not included in the official release, but apparently was sent to the newspaper “in a written statement:” I have had the distinct privilege of being associated with WESCO, and I could not be more proud of our company and the quality of our organization.

            John Engel joined WESCO almost seven years ago, and he has done an outstanding job positioning WESCO for continued growth and profitability over the long term. I am confident that the management team, under John’s leadership, will be highly successful.

            Also on WESCO—CBC Connect (Miamisburg, Ohio), a unit of WESCO subsidiary Carlton-Bates, extended an agreement with The Offshore Group for “manufacturing support or ‘shelter services’” in Mexico—through 2015. That’s where “approximately 140 workers are employed in the manufacturer of industrial wire harnesses and Deutsche connectors.” More.

YALE E.S.—Yale Electric Supply (Lancaster, Pa.), which has 10 locations in Delaware, New Jersey, and Pennsylvania, was named 2010 Marketeer of the Year by Legrand North America. It’s the third straight year that Yale has taken home this honor.

    110315dnews2
Caption from Yale Electric Supply: The achievement award was presented to Jeff Frazier and John Rodman, vice president of sales, 
Lancaster Division, for Yale Electric Supply on Feb. 24 by Scott Bausch, Eastern Region vice president, Electrical Wiring Systems Division of Legrand North America;
and Chub Shenk, sales rep for Brazill Brothers, agent for Legrand North America.

Fortune’s “Most Admired” Distributors

Fortune magazine annually publishes its list of the “World’s Most Admired Companies.” Those on the list of the “Wholesalers: Diversified” included:

1. Grainger

2. Graybar

6. Anixter

8. Wesco

10. Rexel

More here.

 

© 2012 The Electrical Distributor. All rights reserved.

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