Manufacturer works to adapt to COVID-19
Executives at Houston electrical equipment maker Powell Industries begin their day with a conference call to talk about three topics — the health and safety of their employees, their customers and their suppliers.
The coronavirus pandemic has created a lot of fear and uncertainty, but the company’s 2,350 employees are still reporting to work. As a maker of electrical control panels and other equipment for several industries, Powell was designated an essential manufacturer.
“Across our seven manufacturing facilities, we have implemented social distancing practices,” Powell Industries CEO Brett Cope said in a May investors call. “We’ve adjusted shift hours, increased the frequency and cleaning of factory and office facilities, and instituted remote work options for those roles that support our manufacturing operations.”
Powell, a 73-year old company, is adjusting to the challenges of the coronavirus pandemic after a strong financial performance in 2019 that ranks it No. 7 on the Houston Chronicle’s list of the region’s top-performing public companies.
Powell’s revenues last year climbed 16 percent to $542 million from $468 million in 2018. Earnings per share swung to $1.32 from a loss of 36 cents in 2018.
The coronavirus and its impact on energy demand will likely mean fewer orders from oil and gas and petrochemical customers, Cope said. The energy sector accounts for 66 percent of Powell’s revenues, but Cope said the company’s diverse customers, including paper mills, power plants and other industries, will allow the company to prosper, despite tough economic conditions.
On the supply side, the company has not experienced any disruption for raw materials or components made by third-party suppliers.
Looking ahead, Cope reminded investors that the effects of the 20142016 oil industry were delayed for the company by two years and that Powell survived the downturn by executing a cost-cutting playbook that increased profitability over the past twoand-a-half years.
“We’re confident we will navigate this challenge as well,” Cope said.
“We’re confident we will navigate this challenge as well.” Powell Industries CEO Brett Cope