With progress happening on many fronts, the first quarter of 2005 has been a truly exciting time for the Eldon family.

 

First, we are continuing to build on last year’s business success. In the first quarter, we have achieved a double-digit increase in revenue. This is particularly impressive in light of the Easter holidays falling in the first quarter of 2005, not the second quarter as they did last year.

 

Second, the change process we began last year is delivering results for our customers. Not only have we seen a major improvement in both logistics and distribution, but our manufacturing facilities are showing big increases in efficiency, reliability and quality.

 

This quarter we launched our online catalog (see the article in this newsletter) making it easier for our customers to keep informed about Eldon’s products and streamlining the ordering process. Over the next several quarters we plan to increase the e-catalog’s functionality by making the site transactional and introducing availability and “status-of-order” tracking components.

 

I am happy to report that steel prices seem to have stabilized and we are currently optimistic that no major deviations from current levels are expected during the year. From a market point of view, the only real threat is the increase in the oil price, which negatively affect our transportation costs and more importantly could slow-down the overall economy.

 

Finally, we feel that the changes we’ve instituted to improve Eldon’s competitive position while making us “the company that’s easy to do business with” have been paying off – and this is not just me saying it. We’re hearing it from our customers.