W&O Supply
W&O supplies marine valves, pipes, fittings, engineered products and valve automation solutions to commercial shipping, the U.S. Navy, Military Sealift Command, MARAD, U.S. Coast Guard, cruise lines, barge owners, offshore oil and natural-gas rigs and shipyards.
MN: How is business?
Jack Guidry, CEO W&O
The first quarter of 2009 brought in the highest revenue of any quarter in company history. Bookings of new orders also continue to be steady. We are starting to feel a bit of softening due to one particularly large project that has been put on hold. However, we are seeing a steady increase in business directly with the offshore drilling companies. Business with the U.S. Navy is continuing as planned and our international book of business is looking very positive.
MN: Please describe your most successful product/service?
The most successful aspect of our business is the expansion of our Engineered Products & Services division, which is really the direction our overall business is moving. Our automation group develops specialized actuation and control solutions by working directly with our customers' engineers. For example, our RISE bulkhead penetration system is being incorporated in military vessel repairs and retrofits as the U.S. Navy shifts from traditional block systems. The RISE system eliminates gaps between cables with a fire-resistant sealant to help prevent the spread of on-board fires, as evidenced by a fire on the USS George Washington that spread through a passageway for cables. We also secured a multi-year new-build and retrofit project with Kirby Corporation, an inland barge owner/operator headquartered in Houston. W&O worked closely with Kirby to develop an automated valve solution for its new specialized inland barges and to refit much of its existing fleet. The Engineered Products and Services group has also worked with strategic OEMs to develop marine specific applications to address emerging concerns such as fuel management, ballast water treatment and stack emissions.
MN: To what do you attribute your success?
needed a valve. He got out of bed and personally loaded the truck and delivered the valve to the customer before daybreak. One of our employees in Philadelphia received notice that a ship arrived unscheduled in the middle of the night and needed product prior to its departure early the next day. Again, our employee personally loaded and delivered the product that night. We have transported product and employees via helicopters to offshore rigs and have used many other means at the last minute to get product out for revised dry dock schedules.
MN: What is the outlook?
We attribute much of W&O's success to our employees. They understand the maritime industry is a 24-hour/365day-a-year business. For example, one of our employees in Houston received a call at 1:00 a.m. from a customer who
32 MN
The future outlook for our business in the short and long-term is very positive. In the next five to seven years W&O is looking to expand our domestic and international business. Even in declining bookings, there is still much potential and interest in Asia as evidenced by South Korean shipyards, which continue to be the leading shipbuilders in the world � home to seven of the world's 10 largest shipyards. We also have many opportunities we are exploring in the Middle East, Asia, Europe and South America. We see this economic climate as an opportunity to invest in the future of W&O. We have identified acquisition opportunities to compliment our business, including Automated Valve and Controls in Houston, Texas, and have identified additional geographic areas for physical expansion.
August 2009