MEMPHIS, Tenn., July 21 /PRNewswire-FirstCall/ -- Harvey L. Karp,
Chairman of Mueller Industries, Inc. (NYSE:MLI), announced today
that Mueller's net income in the second quarter of 2009 was $6.0
million, or 16 cents per diluted share. This compares with $27.0
million, or 72 cents per diluted share, for the same period of
2008. Net sales for the second quarter of 2009 were $367.8 million
compared with $753.5 million in 2008. For the first half of 2009,
net income was $3.5 million, or 9 cents per diluted share, on net
sales of $694.4 million. This compares with net income of $54.4
million, or $1.45 per diluted share, on net sales of $1.46 billion
for the first half of 2008. Net sales of the Company's core product
lines including copper tube, fittings, brass rod and forgings were
substantially affected by the lower market values of copper and
brass, the Company's principal raw materials, which are largely
passed through to customers. In the second quarter of 2009, the
Comex average price of copper was 43 percent lower than in the
second quarter of 2008. Approximately $206 million of the decrease
in net sales was attributable to lower unit volume primarily in the
OEM segment. Lower selling prices, primarily in the Plumbing &
Refrigeration segment, accounted for approximately $146 million of
the decrease in net sales. Mr. Karp said, "Mueller was profitable
in the second quarter of 2009, after reporting a small loss in the
first quarter of the year. We believe the construction industry is
at, or near, a 'bottom,' although the pace and the extent of
recovery remain uncertain. "Mueller made rapid and extensive
adjustments to its businesses as unit volumes declined, as a result
of the national economic downturn. We expect Mueller to emerge from
the current economic malaise a stronger, more efficient and more
competitive company." Financial and Operating Highlights Regarding
the second quarter of 2009, Mr. Karp said: -- "Our financial
condition remains strong, and, in fact, improved in the second
quarter. We ended the quarter with $334.0 million in cash and
$581.2 million in working capital. -- "Total stockholders' equity
attributable to Mueller was $719.3 million which equates to a book
value per share of $19.37 of which $8.99 per share is in cash. --
"Our current ratio remains solid at 4.6 to 1, and our financial
leverage is conservative with a debt to total capitalization ratio
of 18.9 percent. -- "Our Plumbing & Refrigeration segment
posted operating earnings of $11.9 million on net sales of $229.8
million which compares with prior year earnings of $35.4 million on
net sales of $404.4 million. Operating results were adversely
affected by lower spreads and unit shipments. -- "Our OEM segment
posted operating earnings of $8.1 million during the second quarter
of 2009 on net sales of $139.9 million, which compares with
operating earnings of $19.0 million on net sales of $354.0 million
for the same period in 2008. -- "The Comex average price of copper
was $2.15 per pound in the second quarter of 2009, which compares
with $3.80 in the second quarter of 2008. -- "During the first half
of 2009, capital expenditures totaled $8.7 million. " 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 For the Six
Months Ended Ended ------------------ -------------------- June 27,
June 28, June 27, June 28, 2009 2008 2009 2008 -------- --------
-------- -------- (Unaudited) (Unaudited) Net sales $367,800
$753,471 $694,358 $1,457,579 Cost of goods sold 313,353 661,209
600,736 1,273,006 Depreciation and amortization 10,355 11,004
20,835 21,988 Selling, general, and administrative expense 30,316
34,618 61,474 72,909 -------- -------- -------- -------- Operating
income 13,776 46,640 11,313 89,676 Interest expense (2,482) (5,238)
(5,118) (10,705) Other income, net 385 1,961 1,012 6,530 --------
-------- -------- -------- Income before income taxes 11,679 43,363
7,207 85,501 Income tax expense (5,512) (15,339) (3,550) (29,570)
-------- -------- -------- -------- Consolidated net income 6,167
28,024 3,657 55,931 Less: net income attributable to noncontrolling
interest (139) (1,010) (121) (1,562) -------- -------- --------
-------- Net income attributable to Mueller Industries, Inc. $6,028
$27,014 $3,536 $54,369 ======== ======== ======== ======== Weighted
average shares for basic earnings per share 37,143 37,119 37,143
37,108 Effect of dilutive stock options 120 340 97 269 --------
-------- -------- -------- Adjusted weighted average shares for
diluted earnings per share 37,263 37,459 37,240 37,377 --------
-------- -------- -------- Basic earnings per share $0.16 $0.73
$0.10 $1.47 ======== ======== ======== ======== Diluted earnings
per share $0.16 $0.72 $0.09 $1.45 ======== ======== ========
======== Dividends per share $0.10 $0.10 $0.20 $0.20 ========
======== ======== ======== Summary Segment Data:
--------------------- Net sales: Plumbing & Refrigeration
Segment $229,763 $404,414 $420,156 $788,298 OEM Segment 139,885
353,988 278,277 680,195 Elimination of intersegment sales (1,848)
(4,931) (4,075) (10,914) -------- -------- -------- -------- Net
sales $367,800 $753,471 $694,358 $1,457,579 ======== ========
======== ========== Operating income: Plumbing & Refrigeration
Segment $11,882 $35,370 $22,213 $60,454 OEM Segment 8,052 18,963
1,786 44,537 Unallocated expenses (6,158) (7,693) (12,686) (15,315)
-------- -------- -------- -------- Operating income $13,776
$46,640 $11,313 $89,676 ======= ======= ======= ======= MUELLER
INDUSTRIES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In
thousands) June 27, December 27, 2009 2008 ------------
------------ (Unaudited) ASSETS Cash and cash equivalents $333,959
$278,860 Accounts receivable, net 207,238 219,035 Inventories
169,118 210,609 Other current assets 32,033 46,322 ------------
------------ Total current assets 742,348 754,826 Property, plant,
and equipment, net 268,017 276,927 Other assets 151,537 151,160
------------ ------------ $1,161,902 $1,182,913 ============
=========== LIABILITIES AND EQUITY Current portion of debt $9,629
$24,184 Accounts payable 59,871 63,732 Other current liabilities
91,678 113,668 ------------ ------------ Total current liabilities
161,178 201,584 Long-term debt, less current portion 158,226
158,726 Pension and postretirement liabilities 39,688 38,452
Environmental reserves 23,352 23,248 Deferred income taxes 33,496
33,940 Other noncurrent liabilities 1,417 1,698 ------------
------------ Total liabilities 417,357 457,648 ------------
------------ Total Mueller Industries, Inc. stockholders' equity
719,339 700,683 Noncontrolling interest 25,206 24,582 ------------
------------ Total equity 744,545 725,265 ------------ ------------
$1,161,902 $1,182,913 ============ =========== MUELLER INDUSTRIES,
INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands)
For the Six Months Ended -------------------------- June 27, June
28, 2009 2008 -------- -------- (Unaudited) Operating activities:
Net income attributable to Mueller Industries, Inc. $3,536 $54,369
Reconciliation of net income attributable to Mueller Industries,
Inc. to net cash provided by operating activities: Depreciation and
amortization 20,946 22,323 Gain on early retirement of debt (128)
(2,482) Net income attributable to noncontrolling interest 121
1,562 Stock-based compensation expense 1,220 1,479 Loss on disposal
of properties 260 341 Deferred income taxes (136) 130 Income tax
benefit from exercise of stock options - (69) Changes in assets and
liabilities: Receivables 16,831 (66,599) Inventories 45,209 7,489
Other assets 1,059 (2,321) Current liabilities (21,741) (12,757)
Other liabilities (546) 1,342 Other, net (101) (1,167) --------
-------- Net cash provided by operating activities 66,530 3,640
-------- -------- Investing activities: Capital expenditures
(8,725) (14,833) Net withdrawals from (deposits into) restricted
cash balances 13,039 (632) Proceeds from sales of properties 606 -
-------- -------- Net cash provided by (used in) investing
activities 4,920 (15,465) -------- -------- Financing activities:
Repayments of long-term debt (370) (23,605) Dividends paid to
stockholders of Mueller Industries, Inc. (7,428) (7,421) Dividends
paid to noncontrolling interests (1,449) - (Repayment) issuance of
debt by joint venture, net (14,567) 5,411 Issuance of shares under
incentive stock option plans from treasury - 1,055 Income tax
benefit from exercise of stock options - 69 Acquisition of treasury
stock - (13) -------- -------- Net cash used in financing
activities (23,814) (24,504) -------- -------- Effect of exchange
rate changes on cash 7,463 1,331 -------- -------- Increase
(decrease) in cash and cash equivalents 55,099 (34,998) Cash and
cash equivalents at the beginning of the period 278,860 308,618
-------- -------- Cash and cash equivalents at the end of the
period $333,959 $273,620 ======== ======== DATASOURCE: Mueller
Industries, Inc. CONTACT: Kent A. McKee, of Mueller Industries,
Inc., +1-901-753-3208
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