Mueller Industries Inc. (MLI, Financial) filed Quarterly Report for the period ended 2010-06-26.
Mueller Industries Inc. has a market cap of $919.2 million; its shares were traded at around $24.39 with a P/E ratio of 20.1 and P/S ratio of 0.6. The dividend yield of Mueller Industries Inc. stocks is 1.6%.MLI is in the portfolios of Kenneth Fisher of Fisher Asset Management, LLC, Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
Net sales for the OEM segment increased approximately 84 percent to $257.8 million in the second quarter of 2010 from $139.9 million in the second quarter of 2009. The increase was due primarily to higher selling prices resulting from increased average costs of raw material and increased volume resulting from improving economic conditions. Of the $117.9 million increase in net sales, approximately $58.1 million was attributable to increased unit volume and $51.1 million was due to increased selling prices in the segment s core product lines consisting primarily of brass rod, forgings, and commercial tube. Cost of goods sold increased from $122.8 million in the second quarter 2009 to $231.5 million in the second quarter of 2010. The increase was due primarily to increased sales volume, higher raw material costs, and higher aggregate conversion costs resulting from increased production. Depreciation and amortization remained consistent. Selling, general, and administrative expense increased moderately to $5.8 million in the second quarter of 2010 compared to $5.5 million in the second quarter of 2009, due primarily to increased employment costs, including incentive compensation. Operating income for the segment improved from $8.1 million in the second quarter of 2009 to $16.9 million in the second quarter of 2010 due primarily to increased sales volumes and improved unit spreads across all of the segment s core product lines, especially brass rod.
Cost of goods sold increased from $600.7 million in the first half of 2009 to $879.7 million in the same period of 2010. The increase was primarily due to the increased average cost of raw material, volume increases, and increased aggregate conversion costs as a result of increased production. Also included in cost of goods sold for the first half of 2010 is a $0.9 million provision to write-down certain inventories using the FIFO method to the lower-of-cost-or-market. Depreciation and amortization remained relatively consistent. Selling, general, and administrative expense was $70.8 million for the first half of 2010 compared with $61.5 million for the same period of 2009. The increase was primarily due to increased employment costs, increased foreign currency transaction losses of $2.1 million related to the British pound sterling, and increased bad debt expense of $3.5 million.
Net sales by the Plumbing and Refrigeration segment were $542.4 million in the six months ended June 26, 2010, which was approximately a 29 percent increase from $420.2 million for the same period in 2009. The increase was due to increased selling prices resulting from higher average raw material costs. This increase was partially offset by lower unit volume, mainly in copper tube and fittings, resulting primarily from continuing adverse conditions in the residential and commercial construction markets. The $122.2 million increase in net sales consisted of approximately $132.3 million attributable to higher selling prices in the segment s core product lines consisting primarily of copper tube, line sets, and fittings; partially offset by approximately $18.7 million related to unit volume decreases in these same core product lines. Cost of goods sold increased from $345.4 million in the first half of 2009 to $451.0 million in the first half of 2010. This increase primarily resulted from increased raw material costs, partially offset by volume declines. Also included in cost of goods sold for the six months ended June 26, 2010 is a $0.9 million provision to write-down certain inventories to the lower-of-cost-or-market. Depreciation and amortization remained relatively consistent. Selling, general, and administrative expense increased moderately by $0.3 million in the first half of 2010 due primarily to increased employment costs including incentive compensation. During the first half of 2010, the Company settled the insurance claim related to a fire at its U.K. copper tube facility, resulting in a net gain of $21.3 million. Operating income for the segment increased from $22.2 million in the first half of 2009 to $60.2 million in the first half of 2010 due primarily to the insurance settlement gain at the U.K. copper tube facility and improved unit spreads in many of the segment s core product lines, offset partially by lower unit sales volume.
Net sales for the OEM segment increased approximately 76 percent to $490.0 million in the six months ended June 26, 2010 from $278.3 million in the same period of 2009. The increase was due primarily to higher selling prices resulting from increased average costs of raw material and increased volume resulting from improving economic conditions. Of the $211.7 million increase in net sales, approximately $88.6 million was attributable to increased unit volume and $109.0 million was due to increased selling prices in the segment s core product lines consisting primarily of brass rod, forgings, and commercial tube. Cost of goods sold increased from $258.9 million in the first half 2009 to $435.1 million in the first half of 2010. The increase was due primarily to increased sales volume, higher raw material costs, and higher aggregate conversion costs resulting from increased production. Depreciation and amortization remained consistent. Selling, general, and administrative expense increased $4.2 million to $14.7 million in the first half of 2010 due primarily to increased bad debt expense of $3.2 million and increased employment costs, including incentive compensation. Operating income for the segment improved from $1.8 million in the first half of 2009 to operating income of $33.1 million in the first half of 2010 due primarily to increased sales volume and improved unit spreads across all of the segment s core product lines.
During the first half of 2010, cash provided by investing activities totaled $8.5 million. The net cash inflow resulted from insurance proceeds of approximately $17.7 million related to the property and equipment damage claim with respect to the Company s U.K. copper tube facility, partially offset by $9.3 million of capital expenditures. Cash provided by financing activities during the first half of 2010 totaled $11.4 million, which consisted of the net increase in Mueller-Xingrong s working capital debt facility of $16.4 million, proceeds from the exercise of stock options of $2.5 million, offset by dividends paid totaling $7.5 million.
Read the The complete Report
Mueller Industries Inc. has a market cap of $919.2 million; its shares were traded at around $24.39 with a P/E ratio of 20.1 and P/S ratio of 0.6. The dividend yield of Mueller Industries Inc. stocks is 1.6%.MLI is in the portfolios of Kenneth Fisher of Fisher Asset Management, LLC, Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
Net sales by the Plumbing and Refrigeration segment were $285.7 million in the second quarter of 2010, which was approximately a 24 percent increase from $229.8 million for the same period in 2009. The increase was due to increased selling prices resulting from higher average raw material costs. This increase was partially offset by lower unit volumes, mainly in copper tube and fittings, resulting primarily from continuing adverse conditions in the residential and commercial construction markets. Of the $55.9 million increase in net sales, approximately $59.7 million was attributable to higher selling prices in the segment s core product lines consisting primarily of copper tube, line sets, and fittings; this increase was partially offset by approximately $7.7 million related to unit volume decreases in these same core product lines. Cost of goods sold increased from $192.1 million in the second quarter of 2009 to $238.1 million in the second quarter of 2010. This increase primarily resulted from increased raw material costs, partially offset by volume declines. Cost of goods sold for the second quarter of 2010 also includes a $0.9 million provision to write-down certain inventories to the lower-of-cost-or-market. Depreciation and amortization remained relatively consistent. Selling, general, and administrative expense increased to $20.4 million in the second quarter of 2010 from $19.2 million in the second quarter of 2009 due primarily to increased employment costs including incentive compensation. During the second quarter of 2010, the Company incurred expenses totaling $1.2 million related to the rehabilitation of the U.K. copper tube facility resulting from the November 2008 fire. The insurance claim with respect to such fire was settled with the insurer in the first quarter of 2010; rehabilitation costs incurred in prior periods were deferred and not recognized until settlement of the claim. Operating income for the segment increased from $11.9 million in the second quarter of 2009 to $19.7 million in the second quarter of 2010 due primarily to improved unit spreads in many of the segment s core product lines. The increase was partially offset by lower unit sales volume and the additional expenses incurred related to the continued rehabilitation of the U.K copper tube facility after the insurance claim settlement.Net sales for the OEM segment increased approximately 84 percent to $257.8 million in the second quarter of 2010 from $139.9 million in the second quarter of 2009. The increase was due primarily to higher selling prices resulting from increased average costs of raw material and increased volume resulting from improving economic conditions. Of the $117.9 million increase in net sales, approximately $58.1 million was attributable to increased unit volume and $51.1 million was due to increased selling prices in the segment s core product lines consisting primarily of brass rod, forgings, and commercial tube. Cost of goods sold increased from $122.8 million in the second quarter 2009 to $231.5 million in the second quarter of 2010. The increase was due primarily to increased sales volume, higher raw material costs, and higher aggregate conversion costs resulting from increased production. Depreciation and amortization remained consistent. Selling, general, and administrative expense increased moderately to $5.8 million in the second quarter of 2010 compared to $5.5 million in the second quarter of 2009, due primarily to increased employment costs, including incentive compensation. Operating income for the segment improved from $8.1 million in the second quarter of 2009 to $16.9 million in the second quarter of 2010 due primarily to increased sales volumes and improved unit spreads across all of the segment s core product lines, especially brass rod.
Cost of goods sold increased from $600.7 million in the first half of 2009 to $879.7 million in the same period of 2010. The increase was primarily due to the increased average cost of raw material, volume increases, and increased aggregate conversion costs as a result of increased production. Also included in cost of goods sold for the first half of 2010 is a $0.9 million provision to write-down certain inventories using the FIFO method to the lower-of-cost-or-market. Depreciation and amortization remained relatively consistent. Selling, general, and administrative expense was $70.8 million for the first half of 2010 compared with $61.5 million for the same period of 2009. The increase was primarily due to increased employment costs, increased foreign currency transaction losses of $2.1 million related to the British pound sterling, and increased bad debt expense of $3.5 million.
Net sales by the Plumbing and Refrigeration segment were $542.4 million in the six months ended June 26, 2010, which was approximately a 29 percent increase from $420.2 million for the same period in 2009. The increase was due to increased selling prices resulting from higher average raw material costs. This increase was partially offset by lower unit volume, mainly in copper tube and fittings, resulting primarily from continuing adverse conditions in the residential and commercial construction markets. The $122.2 million increase in net sales consisted of approximately $132.3 million attributable to higher selling prices in the segment s core product lines consisting primarily of copper tube, line sets, and fittings; partially offset by approximately $18.7 million related to unit volume decreases in these same core product lines. Cost of goods sold increased from $345.4 million in the first half of 2009 to $451.0 million in the first half of 2010. This increase primarily resulted from increased raw material costs, partially offset by volume declines. Also included in cost of goods sold for the six months ended June 26, 2010 is a $0.9 million provision to write-down certain inventories to the lower-of-cost-or-market. Depreciation and amortization remained relatively consistent. Selling, general, and administrative expense increased moderately by $0.3 million in the first half of 2010 due primarily to increased employment costs including incentive compensation. During the first half of 2010, the Company settled the insurance claim related to a fire at its U.K. copper tube facility, resulting in a net gain of $21.3 million. Operating income for the segment increased from $22.2 million in the first half of 2009 to $60.2 million in the first half of 2010 due primarily to the insurance settlement gain at the U.K. copper tube facility and improved unit spreads in many of the segment s core product lines, offset partially by lower unit sales volume.
Net sales for the OEM segment increased approximately 76 percent to $490.0 million in the six months ended June 26, 2010 from $278.3 million in the same period of 2009. The increase was due primarily to higher selling prices resulting from increased average costs of raw material and increased volume resulting from improving economic conditions. Of the $211.7 million increase in net sales, approximately $88.6 million was attributable to increased unit volume and $109.0 million was due to increased selling prices in the segment s core product lines consisting primarily of brass rod, forgings, and commercial tube. Cost of goods sold increased from $258.9 million in the first half 2009 to $435.1 million in the first half of 2010. The increase was due primarily to increased sales volume, higher raw material costs, and higher aggregate conversion costs resulting from increased production. Depreciation and amortization remained consistent. Selling, general, and administrative expense increased $4.2 million to $14.7 million in the first half of 2010 due primarily to increased bad debt expense of $3.2 million and increased employment costs, including incentive compensation. Operating income for the segment improved from $1.8 million in the first half of 2009 to operating income of $33.1 million in the first half of 2010 due primarily to increased sales volume and improved unit spreads across all of the segment s core product lines.
During the first half of 2010, cash provided by investing activities totaled $8.5 million. The net cash inflow resulted from insurance proceeds of approximately $17.7 million related to the property and equipment damage claim with respect to the Company s U.K. copper tube facility, partially offset by $9.3 million of capital expenditures. Cash provided by financing activities during the first half of 2010 totaled $11.4 million, which consisted of the net increase in Mueller-Xingrong s working capital debt facility of $16.4 million, proceeds from the exercise of stock options of $2.5 million, offset by dividends paid totaling $7.5 million.
Read the The complete Report
