Mueller Industries, Inc. Reports Fourth Quarter and Fiscal 2018 Earnings
COLLIERVILLE, Tenn.--(BUSINESS WIRE)--Feb 5, 2019--Mueller Industries, Inc. (NYSE: MLI) announced today operating income for the fourth quarter of $40.0 million, compared with $21.1 million in the same quarter of 2017. Net income for the quarter was $26.9 million, or 47 cents per diluted share, on net sales of $559.1 million, compared with net income of $5.7 million, or 10 cents per diluted share, on net sales of $523.5 million in the fourth quarter of 2017.
On a full year basis, the Company reported operating income of $173.0 million, compared with $150.8 million in fiscal year 2017. Net income for the year was $104.5 million, or $1.82 per diluted share, on net sales of $2.5 billion, compared with net income of $85.6 million, or $1.49 per diluted share, on net sales of $2.3 billion in 2017.
Financial and Operating Highlights:Net sales for the quarter rose due to higher sales volumes combined with sales from the recently acquired ATCO business, offset by lower selling prices principally due to lower copper prices. Copper prices were 11 percent lower for the fourth quarter of 2018, averaging $2.75 per pound versus $3.10 per pound in the prior year period. During the fourth quarter of 2018, we recognized an insurance recovery gain of $2.2 million related to the losses we incurred due to the 2017 fire at our Port Huron brass rod mill. During the fourth quarter of 2018, the Company repurchased 1.14 million shares of its common stock at a cost of approximately $27.0 million. The financial health of the Company remains strong. For the full year, the Company generated $167.9 million in cash from operations, ending the year with a current ratio of 3.0 to 1 and a return on equity of 19 percent compared to 16 percent in 2017.
Regarding the business, Greg Christopher, Mueller CEO, said, “Overall, our acquisitions are exceeding our expectations and we are beginning to see the benefits of the major capital investments we worked so hard to complete these past five years. Most notably our U.S. Copper Tube manufacturing platforms continue to improve and throughout the year, yielded positive results in throughput, quality, and cost reductions, which will continue to benefit us in the future.
“In addition, we continue to utilize our strong cash generation to fund growth opportunities, reduce debt and, when appropriate, return capital to our shareholders.”
Looking forward, he added, “By almost any measure, 2018 was healthier than the prior year and we expect those improvements to continue. Our outlook for 2019 remains positive, and we see opportunities to capitalize and grow in these interesting times both here and abroad.”
Mueller Industries, Inc. is an industrial manufacturer that specializes in copper and copper alloy manufacturing while also producing goods made from aluminum, steel, and plastics. It is headquartered in Collierville, Tennessee and comprises a network of operations in the United States, Canada, Mexico, Great Britain, South Korea, the Middle East, and China. Its products include tubing, fittings, valves, vessels, and related items for plumbing and HVACR related piping systems, as well as rod, forgings, extrusions, and various components for OEM applications. Products are distributed into sectors such as building construction, appliance, defense, energy, and automotive.
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,” “encourage,” “anticipate,” “appear,” 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.
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CONTACT: Jeffrey A. Martin
KEYWORD: UNITED STATES NORTH AMERICA TENNESSEE
INDUSTRY KEYWORD: BUILDING SYSTEMS MANUFACTURING CHEMICALS/PLASTICS STEEL NATURAL RESOURCES MINING/MINERALS CONSTRUCTION & PROPERTY
SOURCE: Mueller Industries, Inc.
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PUB: 02/05/2019 07:00 AM/DISC: 02/05/2019 07:01 AM