Exhibit 19.1 To Our Stockholders, Customers, and Employees The first quarter of 2003 was adversely effected by exceptionally cold weather conditions, which slowed product deliveries. In addition, margins in our copper tube business remained depressed. The combination of these factors, together with market pressures, resulted in a disappointing quarter. However, we believe volume will pick up in the second quarter as the prime construction season gets underway. Net earnings for the first quarter of 2003 were $3.9 million, or 11 cents per diluted share, compared to $17.9 million, or 48 cents per diluted share, for the first quarter of 2002. Net sales for the first quarter were $232.0 million, a decrease of 6.9 percent from sales of $249.1 for the same quarter of 2002. We shipped 166.6 million pounds of product, compared with 181.5 million pounds for the same quarter last year. Mueller's financial condition is strong. At the end of the quarter, our cash position is $194.9 million, which is more than $5.00 per outstanding share. Our debt-to-total capitalization is virtually nil and, in fact, we currently have no net debt as cash on hand substantially exceeds total debt. Moreover, our current ratio is an impressive 5.1 to 1. In these uncertain times, Mueller's financial strength allows us to focus on our business, and make decisions based on merit rather than expediency. During the first quarter of 2003, Mueller acquired additional shares of Conbraco Industries, Inc., and we are now its largest shareholder at 34 percent. Conbraco manufactures flow control products, including Apollo ball valves, butterfly valves, and other products for commercial and industrial applications. We are working with Conbraco's management to achieve mutual benefits for our companies. The housing industry continues to be a bright spot in our national economy. Building permits, which are an excellent indicator of future business, remain high and are tracking the pace of 2002. Recently, consumer confidence dipped and the national job market was noticeably weaker. We are carefully monitoring these and other factors; but, it is significant that mortgage rates remain very attractive and that may enable the housing industry to have another good year in 2003. Our Annual Stockholders' Meeting will be held at Mueller's headquarters in Memphis, Tennessee on May 1, 2003. You should have already received the notice of the meeting as well as proxy material and the 2002 Annual Report. We hope you can attend but, if you cannot, we urge you to sign and return your proxy card. -1- Sincerely, /s/Harvey L. Karp Harvey L. Karp Chairman of the Board /s/William D. O'Hagan William D. O'Hagan President and Chief Executive Officer April 15, 2003 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, market demand, pricing, and competitive and technological factors, among others, as set forth in the Company's SEC filings. -2- MUELLER INDUSTRIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data) For the Quarter Ended March 29, 2003 March 30, 2002 (Unaudited) Net sales $ 232,022 $ 249,053 Cost of goods sold 191,915 191,806 Depreciation and amortization 9,740 9,076 Selling, general, and administrative expense 23,296 21,981 ---------- ---------- Operating income 7,071 26,190 Nonoperating income, net 39 958 ---------- ---------- Income from continuing operations before income taxes 7,110 27,148 Income tax expense (2,650) (9,283) ---------- ---------- Income from continuing operations 4,460 17,865 (Loss) income from discontinued operations, net of tax (539) 71 ---------- ---------- Net income $ 3,921 $ 17,936 ========== ========== Basic earnings (loss) per share: Weighted average shares outstanding 34,257 33,506 ========== ========== From continuing operations $ 0.13 $ 0.54 From discontinued operations (0.02) - ---------- ---------- Basic earnings per share $ 0.11 $ 0.54 ========== ========== Diluted earnings (loss) per share: Weighted average shares outstanding plus assumed conversions 36,771 37,329 ========== ========== From continuing operations $ 0.12 $ 0.48 From discontinued operations (0.01) - ---------- ---------- Diluted earnings per share $ 0.11 $ 0.48 ========== ========== -3- MUELLER INDUSTRIES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) March 29, 2003 December 28, 2002 (Unaudited) Assets Cash and cash equivalents $ 194,915 $ 217,601 Accounts receivable, net 142,397 132,427 Inventories 144,890 142,953 Other current assets 6,744 7,366 ---------- ---------- Total current assets 488,946 500,347 Property, plant, and equipment, net 348,356 352,469 Other assets 143,336 135,131 ---------- ---------- $ 980,638 $ 987,947 ========== ========== Liabilities and Stockholders' Equity Current portion of long-term debt $ 3,711 $ 4,161 Accounts payable 35,950 41,004 Other current liabilities 55,580 61,186 ---------- ---------- Total current liabilities 95,241 106,351 Long-term debt 13,333 14,005 Other noncurrent liabilities 113,783 113,647 ---------- ---------- Total liabilities 222,357 234,003 Minority interest in subsidiaries 459 421 Stockholders' equity 757,822 753,523 ---------- ---------- $ 980,638 $ 987,947 ========== ========== -4-