1
TO OUR STOCKHOLDERS
Mueller's earnings rose 34 percent for the first quarter of 1994 compared
with the same quarter of 1993. Earnings were $5.6 million, or 54 cents per
share on 10,437,000 average shares outstanding, compared to earnings of $4.2
million, or 41 cents per share on 10,372,000 average shares outstanding, for
the first quarter of 1993.
We are gratified that the earnings increase was achieved despite harsh
weather conditions which prevailed during most of the first quarter this year.
However, productivity increases, yield improvements and cost reductions
contributed to improved profit margins.
Net sales for the first quarter of 1994 totaled $120.8 million, compared to
$131.0 million for the first quarter of 1993. As we have previously noted,
Mueller's sales dollars are significantly affected by the price of copper, our
principal raw material. Average copper prices were fourteen percent lower in
the first quarter of 1994 compared to the same period of 1993.
Our capital improvement programs continue to show good progress. The $20
million expansion of our Fulton, Mississippi copper tube plant has commenced
and the equipment has been ordered. The State of Mississippi, through tax
credits and an industrial revenue bond facility, has enabled us to finance
this project on attractive terms. Also, the $15 million modernization program
at our Port Huron, Michigan brass rod mill is underway. These programs are
scheduled to be completed in the latter half of 1995. Other capital
improvement projects are being evaluated including a major upgrading of our
copper fittings manufacturing operations. We believe these programs will
provide a sound foundation for our growth and profitability.
We are pleased to report that Mueller has entered into five-year contracts
with the unions representing our production workers in Michigan and
Mississippi. Labor contracts of this length are possible only when the
parties are committed to teamwork and cooperation. Mueller operates in a
highly competitive global environment, and we recognize that teamwork is an
essential ingredient to our success.
Our annual stockholders' meeting will be held on May 12, 1994 in Wichita,
Kansas. We invite each stockholder to attend, but if you cannot attend,
please return your proxy card promptly.
Sincerely,
/s/HARVEY L. KARP /s/WILLIAM D. O'HAGAN
Harvey L. Karp William D. O'Hagan
Chairman of the Board President and Chief Executive Officer
April 22, 1994
2
MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In thousands, except share data)
For the Quarter Ended
March 26, 1994 March 27, 1993
Net sales $ 120,812 $ 131,037
Costs and expenses 110,861 123,189
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Operating income 9,951 7,848
Non operating expense, net 992 863
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Income before taxes 8,959 6,985
Income tax expense 3,322 2,772
------- -------
Net income $ 5,637 $ 4,213
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Earnings per common
and common equivalent share:
Primary $ 0.54 $ 0.41
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Fully diluted $ 0.54 $ 0.41
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3
MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except share data)
March 26, 1994 December 25, 1993
Assets
Current assets $ 201,689 $ 194,411
Property, plant and equipment, net 156,388 154,403
Other assets 35,015 20,929
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$ 393,092 $ 369,743
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Liabilities and Stockholders' Equity
Current liabilities $ 54,565 $ 50,906
Long-term debt 69,654 54,320
Other noncurrent liabilities 41,500 42,403
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Total liabilities 165,719 147,629
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Stockholders' equity:
Common stock 100 100
Paid-in capital, common 236,293 236,406
Accumulated deficit (since
January, 1991) (302) (5,939)
Cumulative translation adjustments (2,435) (1,944)
Treasury common stock at cost (6,283) (6,509)
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Total stockholders' equity 227,373 222,114
------- -------
$ 393,092 $ 369,743
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Book value per share $ 23.69 $ 23.18
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DIRECTORS AND OFFICERS
DIRECTORS
Harvey L. Karp Chairman of the Board
Mueller Industries, Inc.
Ray C. Adam (1) (2) Private Investor
Rodman L. Drake (2) (3) President of Rodman L. Drake & Co., Inc.
Gary S. Gladstein (1) (2) Managing Director of Soros Fund Management
Allan Mactier (1) (3) Private Investor
William D. O'Hagan President and Chief Executive Officer
Mueller Industries, Inc.
Robert J. Pasquarelli (1) Chief Executive Officer of New Jersey
Steel Corporation
Paul Soros Private Investor
OFFICERS
Harvey L. Karp Chairman of the Board
William D. O'Hagan President and Chief Executive Officer
Earl W. Bunkers Executive Vice President and
Chief Financial Officer
Harvey W. Clements Vice President and General Manager - Tube
Division
John B. Hansen Vice President and General Manager- Fittings
Division
William H. Hensley Vice President, General Counsel and Secretary
Lee R. Nyman Vice President - Manufacturing/Management
Engineering
James H. Rourke Vice President and General Manager - Industrial
Division
Roy C. Harris Corporate Controller
Kent A. McKee Treasurer and Assistant Secretary
Mueller Industries, Inc. / 2959 N. Rock Road / Wichita, KS 67226 /
(316) 636-6300
[FN]
(1) Member of the Audit Committee
(2) Member of the Compensation Committee
(3) Member of the Nominating Committee