Mueller Industries (MLI) 10-Q 2010 Q2 Quarterly report

Exhibit 19.1

TO OUR STOCKHOLDERS, CUSTOMERS, AND EMPLOYEES

Mueller’s net income in the second quarter of 2010 was $15.6 million, or 41 cents per diluted share.  This compares with net income of $6.0 million, or 16 cents per diluted share, for the same period of 2009.  Net sales for the second quarter of 2010 were $540.4 million compared with $367.8 million in 2009.  For the first half of 2010, net income was $49.5 million, or $1.31 per diluted share, on net sales of $1.03 billion.  This compares with net income of $3.5 million, or 9 cents per diluted share, on net sales of $694.4 million for the first half of 2009.

Net sales of the Company’s core product lines increased substantially due to the higher market values of copper and brass, the Company’s principal raw materials, which are largely passed through to customers.  In the second quarter of 2010, the Comex average price of copper was 48 percent higher than in the second quarter of 2009.

Our financial condition remains strong.  We ended the quarter with $397.2 million in cash equal to $10.53 per share.  Total stockholders’ equity was $755.4 million which equates to a book value of $20.03 per share.  Our current ratio remains solid at 4.0 to 1, and our financial leverage is conservative with a debt to total capitalization ratio of 20.3 percent.

Regarding the business outlook, uncertainty seems to be the underlying theme.  Looming foreclosures, weak jobs reports, an environment of higher taxes, and rising federal deficits are causing widespread anxiety.  However, we believe Mueller’s financial strength and industry leadership positions us to pursue opportunities as they arise.

Very Truly Yours,

/S/ Harvey L. Karp	/S/ Gregory L. Christopher
Harvey L. Karp	Gregory L. Christopher
Chairman of the Board	Chief Executive Officer

July 20, 2010

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MUELLER INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	For the Quarter Ended						For the Six Months Ended
	June 26, 2010			June 27, 2009			June 26, 2010			June 27, 2009
	(In thousands, except per share data)
Net sales	$	540,388		$	367,800		$	1,025,656		$	694,358
Cost of goods sold		466,645			313,353			879,693			600,736
Depreciation and amortization		10,090			10,355			20,438			20,835
Selling, general, and administrative expense		33,468			30,316			70,791			61,474
Insurance settlement		1,210			—			(21,296	)		—
Operating income		28,975			13,776			76,030			11,313
Interest expense		(2,964	)		(2,482	)		(5,496	)		(5,118	)
Other (expense) income, net		(2,518	)		385			(2,378	)		1,012
Income before income taxes		23,493			11,679			68,156			7,207
Income tax expense		(7,456	)		(5,512	)		(17,320	)		(3,550	)
Consolidated net income		16,037			6,167			50,836			3,657
Less net income attributable to noncontrolling interest		(479	)		(139	)		(1,320	)		(121	)
Net income attributable to Mueller Industries, Inc.	$	15,558		$	6,028		$	49,516		$	3,536
Weighted average shares for basic earnings per share		37,674			37,143			37,631			37,143
Effect of dilutive stock options		43			120			69			97
Adjusted weighted average shares for diluted earnings per share		37,717			37,263			37,700			37,240
Basic earnings per share	$	0.41		$	0.16		$	1.32		$	0.10
Diluted earnings per share	$	0.41		$	0.16		$	1.31		$	0.09
Dividends per share	$	0.10		$	0.10		$	0.20		$	0.20

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MUELLER INDUSTRIES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

	June 26,		December 26,			June 26,		December 26,
	2010		2009			2010		2009
	(In thousands)					(In thousands)
ASSETS					LIABILITIES AND STOCKHOLDERS' EQUITY
Cash and cash equivalents	$	397,155	$	346,001	Current portion of long-term debt	$	40,765	$	24,325
Accounts receivable, net		286,578		228,739	Accounts payable		98,336		73,837
Inventories		185,054		191,262	Other current liabilities		86,453		85,208
Other current assets		35,181		42,841
Total current assets		903,968		808,843	Total current liabilities		225,554		183,370
					Long-term debt		158,226		158,226
					Pension and postretirement liabilities		43,082		44,320
					Environmental reserves		25,630		23,268
Property, plant, and equipment, net		237,743		250,395	Deferred income taxes		28,364		31,128
Other assets		122,491		120,903	Other noncurrent liabilities		860		887
					Total liabilities		481,716		441,199
					Stockholders' equity		755,436		713,167
					Noncontrolling interest		27,050		25,775
					Total equity		782,486		738,942
	$	1,264,202	$	1,180,141		$	1,264,202	$	1,180,141

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, market demand, pricing, and competitive and technological factors, among others, as set forth in the Company’s SEC filings.  These filings are available through our website at www.muellerindustries.com.

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