FOR IMMEDIATE RELEASE Contact: Kent A. McKee
October 16, 1996 (901) 753-3208
MUELLER INDUSTRIES, INC. ANNOUNCES
THIRD QUARTER EARNINGS INCREASED BY 39 PERCENT
Memphis, TN - Mueller Industries, Inc. (NYSE MLI) today reported a
39 percent increase in net income for the third quarter of 1996 compared with
the same quarter of 1995. Gross profit, operating income, net income, and
earnings per share all reached record levels. Earnings for the third quarter
of 1996 were $16.2 million, or 83 cents per share, compared to earnings of
$11.6 million, or 60 cents per share, for the same quarter of 1995. Average
shares outstanding totaled 19,520,000 in 1996 and 19,263,000 in 1995.
Product shipments totaled 113.1 million pounds in the third quarter of
1996, or 24 percent more than in the same period of 1995. Net sales for the
third quarter were $176.0 million in 1996 compared to $171.5 million in 1995.
During the third quarter period, the average COMEX copper price was 91 cents
per pound in 1996 and $1.36 per pound in 1995. This reduction in the average
COMEX copper price affected the dollar amount of net sales; however, as noted
above, unit sales substantially increased.
For the first nine-months of 1996, the Company posted earnings of $43.4
million, or $2.23 per share, on net sales of $546.1 million. For the
comparable nine-month period in 1995, earnings were $32.3 million, or $1.69
per share, on net sales of $524.7 million.
Harvey L. Karp, Chairman, stated, "Mueller's manufacturing operations
continue to show excellent improvement. The improvement, in part, reflects
increased yield and productivity at our plants as we continue to realize
incremental benefits from our $100 million investment in major capital
improvements. Further implementation and refinement of these capital
programs should result in additional benefits for the future as we satisfy
the continuing strong demand for our products."
Mueller Industries, Inc. is a leading and diversified fabricator whose
products include copper tube and fittings; brass and copper alloy rods, bars
and shapes; aluminum and brass forgings; aluminum and copper impact
extrusions; plastic fittings and valves; and refrigeration valves, driers and
flare fittings. The Company also owns a short line railroad in Utah, a
placer gold mining operation in Alaska, and other natural resource
properties.
2
MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In thousands, except per share data)
For the Quarter Ended
September 28, September 30,
1996 1995
Net sales $ 175,991 $ 171,549
Costs of goods sold 133,204 137,410
Depreciation and amortization 4,697 4,098
Selling, general, and administrative expense 12,809 13,011
----------- -----------
Operating income 25,281 17,030
Interest expense (1,400) (820)
Environmental reserves (1,945) (955)
Other income, net 1,424 1,736
----------- -----------
Income before income taxes 23,360 16,991
Income tax expense (7,178) (5,386)
----------- -----------
Net income $ 16,182 $ 11,605
=========== ===========
Net income per share:
Primary:
Average shares outstanding 19,520 19,263
Net income $ 0.83 $ 0.60
=========== ===========
Fully diluted:
Average shares outstanding 19,550 19,263
Net income $ 0.83 $ 0.60
=========== ===========
3
MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In thousands, except per share data)
For the Nine-Months Ended
September 28, September 30,
1996 1995
Net sales $ 546,063 $ 524,699
Costs of goods sold 426,272 427,557
Depreciation and amortization 13,718 11,507
Selling, general, and administrative expense 41,632 38,387
----------- -----------
Operating income 64,441 47,248
Interest expense (4,113) (3,331)
Environmental reserves (1,945) (955)
Other income (expense), net 4,364 4,311
----------- -----------
Income before income taxes 62,747 47,273
Income tax expense (19,376) (14,955)
----------- -----------
Net income $ 43,371 $ 32,318
=========== ===========
Net income per share:
Primary:
Average shares outstanding 19,477 19,115
Net income $ 2.23 $ 1.69
=========== ===========
Fully diluted:
Average shares outstanding 19,534 19,256
Net income $ 2.22 $ 1.68
=========== ===========
4
MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except per share data)
September 28, 1996 December 30, 1995
ASSETS
Cash and cash equivalents $ 77,528 $ 48,357
Accounts receivable, net 104,468 83,712
Inventories 69,692 66,360
Other current assets 12,882 12,609
--------- ---------
Total current assets 264,570 211,038
Property, plant and equipment, net 221,171 221,012
Other assets 16,681 18,785
--------- ---------
$ 502,422 $ 450,835
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current portion of long-term debt $ 15,234 $ 16,249
Accounts payable 22,069 16,931
Other current liabilities 45,032 34,704
--------- ---------
Total current liabilities 82,335 67,884
Long-term debt 51,327 59,653
Other noncurrent liabilities 37,800 37,423
--------- ---------
Total liabilities 171,462 164,960
Minority interest in subsidiaries 459 -
Stockholders' equity 330,501 285,875
--------- ---------
$ 502,422 $ 450,835
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