Mueller Industries publishes report on second quarter earnings
Mueller Industries, an international company specialising in flow control and industrial products, has published its second quarter earnings report for 2017.
The Memphis, Tennessee headquartered company has announced operating income of $46.8 million for the second quarter, compared to $44.4 million in the same quarter of 2016. According to the company’s report, net income for the period was $27.6 million, or 48 cents per diluted share, on net sales of $614.3 million. This compares with net income of $27.8 million, or 49 cents per diluted share, on net sales of $544.1 million in the same quarter of 2016.
Mueller Industries attributes the increase in net sales primarily to higher selling prices and higher overall unit volumes.
Financial and operating highlights of the second quarter 2017 are listed in the report:
- The average price of copper was 21 percent (45 cents per pound) higher compared with the same period of 2016.
- During the quarter, Mueller sold its 50.5% share of the MXR China tube mill. The gain from the sale was more than offset by one-time expenses related to startup costs at the Cedar City, Utah tube mill and the press relocation to the Fulton, Mississippi tube mill.
- Interest expense for the quarter was $6.4 million compared with $1.7 million in the same quarter of 2016. The increase was primarily due to interest on the Company's 6% Subordinated Debentures distributed on March 9, 2017 as part of a special dividend.
- At quarter end, cash totalled $167.6 million.
Greg Christopher, Mueller CEO, said: "Business conditions in the markets we serve are on track with our expectations for 2017. Construction activity in the U.S. continues to provide steady demand for many of our products, and improvement in industrial demand after several years of softness is encouraging."
"On May 31, 2017, we acquired the PexCor and HeatLink companies, which support our strategy to grow in the area of pressure plastic piping systems. Further, on June 21, 2017, we made a strategic decision to exit our joint venture in China after years of mediocre performance and increasingly challenging business conditions. We believe that reallocating cash and resources to other initiatives, such as the plastic acquisition and our new mills in Bahrain and Utah, will provide better returns in the future."
Specialising in copper and copper alloy manufacturing but also producing items from aluminium, steel and plastics, Mueller Industries’ products include tubing, fittings, valves, vessels and HVACR related piping systems.