2008–2009 Technical solutions provider to electrical ... - Sonepar USA

2008 Financials
Kathy Rusko
Sales Breakdown
By Customer
Others 5%
Utility 13%
West 7%
Midwest 13%
By Region
NorthEast/
Mid-Atlantic 33%
CFO
Sonepar USA
By Product
Cable and Wire 26%
Sonepar USA experienced profitable
sales growth of 13% through the first
three quarters of 2008, but the last quarter
was severely impacted by the economic
slowdown and the copper collapse, whose
related products lost almost 60% of their
pick value, eroding profits, margins and
asset values across operating companies.
We anticipate a challenging 2009 as most
markets are still experiencing compression
in the residential sector, and declining growth
in the commercial and industrial sectors.
Thanks to the dedication of our associates,
in 2008, Sonepar USA achieved its key
financial targets:
• Free cash flow increased 90%
• Working capital is 11%
• Balance sheet strengthened
• Integration of six acquisitions
Along with a strong and long-term
sustainable commitment and the dedication
of our associates, our financial targets
were reached through improved
standardized processes and functions,
performed in a more integrated, efficient
and cost effective manner.
Continue to leverage
our investments
For the past four years we have focused on
integrating key business activities and data
utilizing a unique IT Platform.
Our ongoing plan, driven by a team of
experts, shows its efficiency through a
process which allows conversions from
existing legacy and stand-alone systems
to an integrated platform, without any
disruption of our daily business and
customer service.
Together with our Business Intelligence
initiative, Sonepar USA has a better
business visibility to share data, work
on best practices, enable efficiencies
and create opportunities.
In addition, our Shared Service Centers
offer areas of efficiency in terms of:
• Common products management
• EDI capability with our customers
and vendors
• Accounting and administrative activities
Globally, our Shared Service Centers
are key for Sonepar USA businesses to
constantly improve and offer the most cost
effective access to markets, customers
and vendors.
Last, but certainly not least, our Son@biz
program is moving along for deployment
in each of our businesses. Son@biz is a
common electronic platform which allows our
customers to look for any product information
and purchase online. Son@biz offers our
companies their own branded website and
marketing programs, and an enhanced
user-friendly selling tool. Cooper Electric
online and Capital Lighting online offer their
customers new services for a better and
easier shopping experience.
Turmoil Presents
Challenges and
Opportunites
In this challenging market and economic
environment there is a great opportunity to
move faster and offer value-added services
to our customers.
We are better positioned today to reinforce
our current relationships with customers and
discover new ways to offer them products,
technologies and services beyond current
offerings. While our overall goal is to take
market share, today’s climate and the future
demands greater productivity and value,
and we must move with urgency to take full
advantage of these opportunities.
Again, this hard economic environment is
a great opportunity to look at our business
differently—innovate and be creative.
This is key for our success in the future.
Industrial 15%
Contractor 67%
South 47%
Electrical
Products 44%
Others 11% Tools 1% Lighting 18%
4,400 associates 2% organic growth 10% total sales growth
7