Encore Wire (WIRE) 8-K Encore Wire Reports Fourth Quarter Results

EXHIBIT 99.1

[Encore Wire Corporation Logo Omitted]

Encore Wire Corporation	PRESS RELEASE		February 5, 2008
1329 Millwood Road
McKinney, Texas 75069		Contact:	Frank J. Bilban
972-562-9473			Vice President & CFO
	For Immediate Release

ENCORE WIRE REPORTS FOURTH QUARTER RESULTS

MCKINNEY, TX — Encore Wire Corporation (NASDAQ Global Select: WIRE) today announced results for the fourth quarter of 2007.

Net sales for the year ended December 31, 2007 were $1.185 billion compared to $1.249 billion during 2006. Lower prices for building wire sold in 2007 accounted for the decrease in net sales dollars versus 2006. Unit volume in 2007 increased 1% over 2006. Net income for the year ended December 31, 2007 was $30.8 million versus $115.1 million in 2006. Fully diluted net earnings per common share were $1.30 for the year ended December 31, 2007 versus $4.86 in 2006.

Net sales for the fourth quarter of the year ended December 31, 2007 were $281.9 million compared to $262.3 million during the fourth quarter of 2006. Unit sales in the fourth quarter of 2007 increased 10% versus the fourth quarter of 2006, however intense competitive pricing pressure compressed gross margins to the lowest levels in the history of the Company. Net income for the fourth quarter of 2007 was a loss of $1.1 million versus a $6.2 million profit in the fourth quarter of 2006. Fully diluted net earnings per common share were a loss of $0.05 in the fourth quarter of 2007 versus a profit of $0.26 in the fourth quarter of 2006.

On a sequential quarter comparison, net sales for the fourth quarter of 2007 were $281.9 million versus $308.5 million during the third quarter of 2007. Net income for the fourth quarter of 2007 was a loss of $1.1 million versus a profit of $5.8 million in the third quarter of 2007. Fully diluted net income per common share was a loss of $0.05 in the fourth quarter of 2007 versus a profit of $0.24 in the third quarter of 2007.

Commenting on the results, Daniel L. Jones, President and Chief Executive Officer of Encore Wire Corporation, said, “The past five quarters have proved to be very challenging for businesses across the U.S. construction industry, including the building wire industry. In the fourth quarter of 2007 these conditions adversely impacted Encore, resulting in only the second quarterly loss this company has reported since 1995. Despite strong copper prices, margins in the building wire industry continue to be compressed. Certain competitors continue to respond to the slowdown in residential construction by cutting wire prices in an attempt to maintain market shares, compressing margins below our expectations at this level of copper prices. Our unit volume shipped in the full year 2007 held up fairly well, despite the slowdown in residential construction. Residential wire unit sales were down 11.5% in 2007 versus 2006, but commercial wire unit sales were up 2.9% and armored cable unit sales were up 419.0%. As a result, our total unit volume shipped, measured in pounds of copper contained in the wire, was up 1.0% in 2007 versus 2006. Encore’s first armored cable shipments were made in the third quarter of 2006. Our residential wire sales comprised 27.5% of 2007 total unit sales. In the fourth quarter of 2007, our total unit sales were up 10.1% versus the fourth quarter of 2006, with residential units up 3.5%, commercial units up 11.0% and armored cable units up 85.5%.

This level of 2007 unit sales growth was achieved despite the fact we sacrificed unit volume repeatedly in 2007 as we attempted to act as an industry leader by avoiding cutting prices to obtain volume. This was particularly true in October of 2007, which began with strong COMEX copper prices of $3.75 per pound. We had low unit sales volume in October, which is historically one of the stronger months of the year, due to our efforts to introduce and support price increases to match the high prices for raw copper we were buying. We purchased quantities of copper in October that exceeded our sales volume at the October average COMEX price of $3.59 per pound. This turned out to be problematic, as the industry chose not to match our attempted price increases and then copper prices fell precipitously in November and December, with COMEX average prices of $3.13 and $3.02 respectively. With this volatility in copper, we were forced to reluctantly match our competitors pricing in November and December, selling the remaining high priced October copper in the next two months.

While we are disappointed with our fourth quarter loss, it must be viewed in the context of the current industry environment. Our staff has done a remarkable job to enable us to perform as well as we have, exemplified by our high order fill rates, innovative products and low cost structure. We have an excellent group of independent representatives selling our products, through which we have developed lasting customer relationships. All of these attributes contributed to the many positive achievements we had in 2007.

We have other positive items of note. The only long-term debt we have as of December 31, 2007, is $100 million in long-term notes due in 2011, with our $200 million revolving line of credit paid down to zero. In addition, we have $78.9 million in cash as of December 31, 2007. Our balance sheet has a conservative 28.2% debt to equity ratio. If you deduct our cash balance from our debt, resulting in net debt of $21.1 million, our net debt to equity ratio is 5.9%. Pursuant to our 10b5-1 stock repurchase plan we announced in November of 2007, we repurchased 177,300 shares of our common stock through January, 124,400 of those shares in the fourth quarter. We also declared our fifth consecutive quarterly cash dividend during the fourth quarter of 2007.

With our exceptionally strong balance sheet, we have the capability to approach the future confidently while our short-term focus is one of riding out this storm. Our low cost structure and strong balance sheet have enabled us to withstand tough periods in the past, and we believe we will emerge stronger than most when market conditions improve. We thank our employees and associates for their tremendous efforts and our shareholders for their continued support during these challenging times.”

Encore Wire Corporation manufactures a broad range of copper electrical wire for interior wiring in homes, apartments, manufactured housing and commercial and industrial buildings.

The matters discussed in this news release, other than the historical financial information, including statements about the copper pricing environment, profitability and shareholder value, may include forward-looking statements that involve risks and uncertainties, including fluctuations in the price of copper and other raw materials, the impact of competitive pricing and other risks detailed from time to time in the Company’s reports filed with the Securities and Exchange Commission. Actual results may vary materially from those anticipated.

Encore Wire Corporation
1329 Millwood Road
McKinney, Texas 75069
(972) 562-9473
Condensed Consolidated Balance Sheets
(In Thousands)
(Unaudited)

	December 31,			December 31,
	2007			2006
ASSETS
Current Assets
Cash	$	78,895		$	24,603
Receivables, net		216,780			214,963
Inventories		82,013			103,947
Prepaid Expenses and Other		18,287			27,537
Total Current Assets		395,975			371,050
Property, Plant and Equipment, net		117,831			102,987
Other Assets		106			120
Total Assets	$	513,912		$	474,157
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts Payable	$	23,645		$	13,413
Accrued Liabilities and Other		25,420			23,772
Total Current Liabilities		49,065			37,185
Long Term Liabilities
Note Payable		100,910			98,974
Other Long Term Liabilities		—			1,026
Non-Current Deferred Income Taxes		8,968			9,851
Total Long Term Liabilities		109,878			109,851
Total Liabilities		158,943			147,036
Stockholders’ Equity
Common Stock		261			260
Additional Paid in Capital		41,806			40,849
Treasury Stock		(17,315	)		(15,275	)
Retained Earnings		330,217			301,287
Total Stockholders’ Equity		354,969			327,121
Total Liabilities and Stockholders’ Equity	$	513,912		$	474,157

Encore Wire Corporation
1329 Millwood Road
McKinney, Texas 75069
(972) 562-9473
Condensed Consolidated Statements of Income
(In Thousands)
(Unaudited)

	Quarter Ended December 31,										Year Ended December 31,
	2007					2006					2007					2006
Net Sales	$	281,942		100.0	%	$	262,319		100.0	%	$	1,184,786	$	100.0	%	$	1,249,330		100.0	%
Cost of Sales		268,432		95.2	%		238,517		90.9	%		1,073,451		90.6	%		1,005,037		80.4	%
Gross Profit		13,510		4.8	%		23,802		9.1	%		111,335		9.4	%		244,293		19.6	%
Selling, General and Administrative Expenses		14,661		5.2	%		13,033		5.0	%		60,400		5.1	%		59,793		4.8	%
Operating Income		(1,151	)	-0.4	%		10,769		4.1	%		50,935		4.3	%		184,500		14.8	%
Net Interest & Other Expense		898		0.3	%		2,152		0.8	%		4,125		0.3	%		7,760		0.6	%
Income before Income Taxes		(2,049	)	-0.7	%		8,617		3.3	%		46,810		4.0	%		176,740		14.1	%
Income Taxes		(941	)	-0.3	%		2,441		0.9	%		16,014		1.4	%		61,607		4.9	%
Net Income	$	(1,108	)	-0.4	%		6,176	$	2.4	%		30,796	$	2.6	%		115,133	$	9.2	%
Basic Earnings Per Share	$	(0.05	)			$	0.27				$	1.32				$	4.95
Diluted Earnings Per Share	$	(0.05	)			$	0.26				$	1.30				$	4.86
Weighted Average Number of Common and Common Equivalent Shares Outstanding:
-Basic		23,337					23,274					23,342					23,254
-Diluted		23,337					23,686					23,690					23,674
Dividends Declared per Share	$	0.02				$	0.02				$	0.08				$	0.02