June 2007 -- Encore Wire Corp. manufactures copper electrical wire for interior wiring in homes, apartments, manufactured housing, and commercial and industrial buildings. In 2006, the company posted record revenues of $1.25 billion, a 65% improvement on the previous year's $758.1 million. Much of the increase can be attributed to the higher prices for copper, resulting in higher prices for Encore Wire's copper wire products. Net income, meanwhile, jumped 130%, from $50.1 million in 2005 to a record $115.1 million in 2006.
However, while sales increased modestly in the first quarter of 2007, from $252.0 million in the previous year to $260.7 million, net income dropped from $16.1 million in first-quarter 2006 to $6.4 million in first-quarter 2007. Daniel Jones, president and CEO of Encore Wire, noted that, "Certain competitors continue to respond to the much-publicized slowdown in residential construction by cutting wire prices in an attempt to maintain market shares, resulting in compressed margins and net earnings." Acknowledging that the industry has been through these competitive situations before, Jones pointed to his company's order fill rates, which they boast on their web site as being 99.95%. Encore Wire also recently went operational with a new armored cable plant, and this product will be rolled out nationally in 2007.
There was speculation in February 2007 that Encore Wire might be the target of a takeover attempt, but as of early May 2007, no such deal had been made.
