Williams Industries Inc. sales increased by 14% to $195,951,061 in 2008 while profit after tax but before extraordinary items increased from $23,593,010 in 2007 to $27,741,807 or 18% in 2008. This profit was reduced to $19,830,419 in 2008 because we provided $4,989,759 for advances made to Almond Smugglers Cove in St. Lucia and we wrote down the value of inventory in BRC by 2,921,629. As a result of these extraordinary items and the $13,792,009 revaluation surplus we had in 2008, earnings per share fell from $1.89 in 2007 to $1.00 in 2008. Our debt increased from 24% to 45.5% of our equity because we invested over $38 million in Barbados and St. Lucia during 2008. Shareholders equity increased from $145,968,703 in 2007 to $160,412,638 in 2008 after dividend payments of $4,753,862 or 24 cents per share.
In general 2008 was an exceptionally turbulent year for business as the price of oil soared and took the price of steel with it. Then the world economy slowed considerably, taking tourism in St. Lucia with it. The price of oil then fell sharply taking steel prices down with it and leaving us with high priced inventory and few tourists to fill our hotel. We chose the conservative route and booked the provisions mentioned above while continuing our strategic investment in utility type business that we believe will provide us with steady income and reduce our dependence on the cyclic construction industry in the future. To this end we invested $24 million in Sustainable (Barbados) Recycling Center (SBRC), $5 million in the Vide Boutielle rental warehouse in St. Lucia and $5 million to acquire Hothersal Trading in Barbados. The first two provided good throughput for our core companies while the third came with 3.5 acres of land in an excellent location for future expansion.
With few exceptions, our teams worked hard during 2008 and I wish to thank them; but at the same time to sound a word of caution as I did in 2007. Absenteeism declined in 2008 but is still far too high in most of our businesses and we will be setting ourselves up to fall if this trend continues. We have to redouble our efforts to be razor sharp in these depressed times to ensure our survival and future prosperity.
Core company activities
C. O. Williams Electrical Ltd.
The Electrical Department of C O Williams Electrical Ltd. that trades as Williams Electrical (WElec.), increased sales by 19% but increased material cost plus an increase in expenses of 30% resulted in a decrease in profit by 24% compared to 2007. Expenses increased because a new electrical retail department was paid for in 2008. This retail outlet is expected to increase profit once it gets up and running in 2009. This department continues to derive significant benefit from Williams Industries new projects but is also winning contracts from the major contractors on the island and from private home owners.
The Metal Sales Departments, which trades as Williams Metals (WM), increased sales by 3% while expenses increased by 4% and net contribution to WII fell by 14% in 2008. Both departments were seriously affected by inventory shrinkage as the high price of steel during the second and third quarters tempted thieves. With the exception of those who were involved in the theft, the teams at Cane Garden and at Lowlands worked very hard against stiff competition to achieve this result as the construction industry declined further in 2008. Plans have been approved for the expansion of the Lowlands operation into a full service builders supply center to the South East but it would be more efficient and less costly to expand to the West so we are still pursuing that option.
