MEMPHIS, Tenn., Oct. 25, 2011 /PRNewswire/ -- Harvey L. Karp, Chairman of Mueller Industries, Inc. (NYSE: MLI), announced today that Mueller's net income in the third quarter was $10.5 million, or 27 cents per diluted share, on net sales of $585.8 million.  This compares with net income of $18.9 million, or 50 cents per diluted share, on net sales of $507.2 million in the third quarter of 2010. The third quarter 2011 results were affected by the precipitous decline in copper prices, resulting in a pretax charge of $6.8 million (or approximately 12 cents per diluted share after tax). Without these charges, earnings would have been 39 cents per diluted share.

Year-to-date, the Company earned $73.4 million, or $1.92 per diluted share, which includes a gain of 18 cents per diluted share related to a favorable litigation settlement. For the same period of 2010, net income was $68.4 million, or $1.81 per diluted share, which includes an insurance settlement gain of 59 cents per diluted share.  

Net sales for the first nine months of 2011 were $1.93 billion compared with net sales of $1.53 billion for the same period a year ago.  

Financial and Operating Highlights

Regarding the third quarter of 2011, Mr. Karp said:

• "The average price of copper was $4.07 per pound in the third quarter of 2011, which compares with $3.30 per pound in the third quarter of 2010. Copper prices reached a high of $4.47 per pound early in the third quarter 2011, and at the end of the quarter stood at $3.15 per pound.
• "Our Plumbing & Refrigeration segment posted operating earnings of $13.9 million on net sales of $325.8 million compared with operating earnings of $11.5 million on net sales of $282.7 million in the third quarter of 2010. The increase in net sales was due to higher selling prices on 5.1 percent lower unit volume.
• "Our OEM segment posted operating earnings of $12.2 million during the third quarter of 2011 on net sales of $266.6 million, which compared with operating earnings of $23.0 million on net sales of $229.0 million for the same period in 2010. The increase in net sales was attributable to higher selling prices on 8.1 percent lower unit volumes.    
• "In September, a portion of our Wynne, Arkansas, manufacturing operations was damaged by fire.  Fortunately, no one was injured. Our efforts in providing our customers with the full range of products required have been successful.
• "Mueller ended the quarter with $448.9 million in cash, or $11.74 per share.  
• "Total stockholders' equity was $856.2 million which equates to a book value per share of $22.40.
• "Mueller's current ratio remains excellent at 4 to 1 and our working capital is $800.4 million. Leverage is conservative with a ratio of debt to total capitalization at 19.1 percent."

Business Outlook

Regarding the outlook, Mr. Karp said, "The near-term outlook for the housing sector continues to be subdued; however, the construction of multi-family housing is improving. Commercial construction is also showing glimmers of better times ahead.

"We believe that the employment picture must brighten as a prerequisite for improvement in the housing market."

Mueller Industries, Inc. is a leading manufacturer of copper tube and fittings; brass and copper alloy rod, bar and shapes; aluminum and brass forgings; aluminum and copper impact extrusions; plastic fittings and valves; refrigeration valves and fittings; and fabricated tubular products.  Mueller's operations are located throughout the United States and in Canada, Mexico, Great Britain, and China. Mueller's business is importantly linked to (1) the construction of new homes; (2) the improvement and reconditioning of existing homes and structures; and (3) the commercial construction market which includes office buildings, factories, hotels, hospitals, etc.  

Statements in this release that are not strictly historical may be "forward-looking" statements, which involve risks and uncertainties.  These include economic and currency conditions, continued availability of raw materials and energy, market demand, pricing, competitive and technological factors, and the availability of financing, among others, as set forth in the Company's SEC filings.  The words "outlook," "estimate," "project," "intend," "expect," "believe," "target," and similar expressions are intended to identify forward-looking statements.  The reader should not place undue reliance on forward-looking statements, which speak only as of the date of this report.  The Company has no obligation to publicly update or revise any forward-looking statements to reflect events after the date of this report.

MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
		For the Quarter Ended				For the Nine Months Ended
		October 1,		September 25,		October 1,		September 25,
		2011		2010		2011		2010
		(Unaudited)				(Unaudited)
Net sales		$ 585,809		$       507,240		$ 1,926,413		$    1,532,896
Cost of goods sold		523,984		437,597		1,687,735		1,317,290
Depreciation and amortization		8,716		9,934		27,581		30,372
Selling, general, and administrative expense		34,245		28,810		102,944		99,601
Litigation settlement		-		-		(10,500)		-
Insurance settlement		-		12		-		(21,284)
Operating income		18,864		30,887		118,653		106,917
Interest expense		(2,822)		(3,072)		(9,004)		(8,568)
Other income (expense), net		102		30		1,425		(2,348)
Income before income taxes		16,144		27,845		111,074		96,001
Income tax expense		(5,403)		(9,098)		(37,060)		(26,418)
Consolidated net income		10,741		18,747		74,014		69,583
Net (income) loss attributable to noncontrolling interest		(266)		162		(621)		(1,158)
Net income attributable to Mueller Industries, Inc.		$   10,475		$         18,909		$      73,393		$         68,425
Weighted average shares
for basic earnings per share		37,878		37,710		37,779		37,657
Effect of dilutive stock-based awards		483		92		367		77
Adjusted weighted average shares
for diluted earnings per share		38,361		37,802		38,146		37,734
Basic earnings per share		$       0.28		$             0.50		$          1.94		$             1.82
Diluted earnings per share		$       0.27		$             0.50		$          1.92		$             1.81
Dividends per share		$       0.10		tennessee, arkansas, mueller industries inc., usd, cent, memphis, wynne, china, mexico, great britain, united states, canada, tubular products, insurance settlement gain, harvey l. karp, finance, generally accepted accounting principles, balance sheet, net income, earnings before interest and taxes, ownership equity, insurance, income, tax, depreciation, income statement, financial ratio, chairman, mueller industries inc, united kingdom Read source article Blog on news item Related content News: Exceptions become the rule 24 days ago - Forum:Blog Long ago, I worked as an analyst on Wall Street. The first company that I analyzed was Federal Express, which at the time had not yet shipped its first package. The idea behin... The Aleph Blog Profile Connections Connected to Blog Media Pages Bookmarks Products Blog: Best of the Aleph Blog, Part 19 The Aleph Blog 17 days ago News: Mueller Industries, Inc. Announces Intent to Redeem its 6% Subordinated Debentures 365 days ago - PR Newswire: Mining & Metals MEMPHIS, Tenn., May 24, 2012 /PRNewswire/ -- Mueller Industries, Inc. (NYSE: MLI), announced today that it issued a Notice of Redemption to all the holders of its 6%... News: CME Group Inc. Declares Quarterly Dividend 4 hours ago - News Articles CME Group, the world's leading and most diverse derivatives marketplace, today declared a second-quarter dividend of $0.45 per share, payable June 25, 2013, to shareholders of... News: Merely Cracking The Glass Ceiling Is Not Enough: Corporate America Needs More Than Just A Few Women In Leadership By SEC Commissioner Luis A. Aguilar - Women's Executive Circle Of New York, The University Club Of New York, New York, New York, May 22, 2013 yesterday - News Articles Thank you for that kind introduction.  I am honored to be here with the Women’s Executive Circle of New York (the “WECNY”) to discuss a topic that&rsquo... News: SEC Charges Eight Mutual Fund Directors For Failure To Properly Oversee Asset Valuation 164 days ago - News Articles The Securities and Exchange Commission today announced charges against eight former members of the boards of directors overseeing five Memphis, Tenn.-based mutual funds for ... © MoneyScience 2011-2012 All Rights Reserved. VAT No: 902 7652 32 Company No. 6184038 Help | Contact | Disclaimer Terms & Conditions | Privacy Policy Advertising | Feeds