Mueller Industries, Inc. (NYSE: MLI) announces results for the
second quarter of 2023. Comparisons are to the second quarter of
2022, which, for context, yielded the highest quarterly earnings on
record and a 70 percent increase in operating income over the same
period in 2021.
- Operating Income of $210.7 million versus $268.9 million
- Net Income of $177.7 million versus $206.6 million
- Diluted EPS of $3.12 versus $3.65
- Net Sales of $897.0 million versus $1.15 billion
Second Quarter Financial and Operating Highlights:
- The decrease in net sales was primarily attributable to the
normalization of demand across our three segments. In addition,
lower COMEX copper prices, which were 11 percent below the second
quarter of 2022, contributed to the decline.
- The change in metal prices, net of hedges, resulted in a $6.9
million increase in cost of goods sold in the current quarter as
compared with an $8.0 million decrease in the prior year
period.
- Operating costs were unfavorably stressed due to the impacts of
several nonrecurring events:
- As previously reported, our copper fitting manufacturing plant
was damaged by a tornado on March 31, 2023 and remains shut down.
While we rebuild the facility, we are producing some product in
makeshift operations and sourcing the rest.
- Our Brass Rod business was disrupted by a fire that resulted
from work being performed by a third party contractor, thereby
impairing production for nearly three weeks during the
quarter.
- Our Westermeyer business, which lost its manufacturing plant to
a fire in August 2022, continues to operate at 80-85 percent of
pre-fire levels in makeshift production operations. The business
settled and recorded a $19.5 million gain from the insurance claim
arising from the fire.
- Cash and short-term investments at quarter end were $898.4
million, an increase of $116.0 million during the quarter.
- Our current ratio increased to 5.4 to 1.
Regarding the quarter performance and outlook, Greg Christopher,
Mueller’s CEO said, “Our team managed through some difficult issues
and demonstrated its commitment to servicing customers, no matter
the obstacles. Given the state of business and the unforeseen
challenges we confronted, to have achieved these results is quite
positive.
Decline in overall demand was as anticipated due to the easing
of supply chain congestion and moderation of construction activity
from its peak levels in 2022. Expenses were elevated due to
inflation and the aforementioned disruptions, which absorbed
considerable amounts of additional time and cost.
For the second half, we maintain our view that inflation and
interest rates will remain at elevated levels and as such, will
continue to exert pressure on the global economy. Demand and
backlogs appear to have moderated to more normal levels, as supply
chains have been sensibly rebalanced.
We will adjust as conditions dictate and are focused on
investments that will optimize our manufacturing platform, reduce
costs and improve profitability. We continue to generate strong
cash flows, which provide us the necessary resources to act swiftly
as growth opportunities present themselves.”
Mueller Industries, Inc. (NYSE: MLI) is an industrial
corporation whose holdings manufacture vital goods for important
markets such as air, water, oil and gas distribution; climate
comfort; food preservation; energy transmission; medical;
aerospace; and automotive. It includes a network of companies and
brands throughout North America, Europe, Asia, and the Middle
East.
***********************
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 and energy, market demand,
pricing, competitive and technological factors, and the
availability of financing, among others, as set forth in the
Company’s SEC filings. The words “outlook,” “estimate,” “project,”
“intend,” “expect,” “believe,” “target,” “encourage,” “anticipate,”
“appear,” and similar expressions are intended to identify
forward-looking statements. The reader should not place undue
reliance on forward-looking statements, which speak only as of the
date of this report. The Company has no obligation to publicly
update or revise any forward-looking statements to reflect events
after the date of this report
MUELLER INDUSTRIES,
INC.
CONDENSED CONSOLIDATED
STATEMENTS OF INCOME
(Unaudited)
For the Quarter Ended
For the Six Months Ended
(In thousands, except per share data)
July 1, 2023
June 25, 2022
July 1, 2023
June 25, 2022
Net sales
$
896,984
$
1,150,042
$
1,868,176
$
2,160,044
Cost of goods sold
639,272
820,914
1,318,070
1,565,425
Depreciation and amortization
10,416
11,302
21,073
22,143
Selling, general, and administrative
expense
56,062
48,956
108,693
96,412
Gain on sale of assets
—
—
—
(5,507
)
Gain on insurance settlement
(19,466
)
—
(19,466
)
—
Operating income
210,700
268,870
439,806
481,571
Interest expense
(135
)
(147
)
(278
)
(305
)
Interest income
7,732
103
13,967
263
Unrealized gain on short-term
investments
20,820
—
20,820
—
Other income, net
1,841
2,100
4,077
2,720
Income before income taxes
240,958
270,926
478,392
484,249
Income tax expense
(62,122
)
(68,290
)
(123,479
)
(122,489
)
Income (loss) from unconsolidated
affiliates, net of foreign tax
715
4,888
(269
)
5,012
Consolidated net income
179,551
207,524
354,644
366,772
Net income attributable to noncontrolling
interests
(1,840
)
(972
)
(3,694
)
(1,904
)
Net income attributable to Mueller
Industries, Inc.
$
177,711
$
206,552
$
350,950
$
364,868
Weighted average shares for basic earnings
per share
55,660
55,787
55,677
55,943
Effect of dilutive stock-based awards
1340
741
1023
776
Adjusted weighted average shares for
diluted earnings per share
57,000
56,528
56,700
56,719
Basic earnings per share
$
3.19
$
3.70
$
6.30
$
6.52
Diluted earnings per share
$
3.12
$
3.65
$
6.19
$
6.43
Dividends per share
$
0.30
$
0.25
$
0.60
$
0.50
MUELLER INDUSTRIES,
INC.
CONDENSED CONSOLIDATED
STATEMENTS OF INCOME, CONTINUED
(Unaudited)
For the Quarter Ended
For the Six Months Ended
(In thousands)
July 1, 2023
June 25, 2022
July 1, 2023
June 25, 2022
Summary Segment Data:
Net sales:
Piping Systems Segment
$
638,005
$
824,807
$
1,300,484
$
1,528,237
Industrial Metals Segment
146,266
179,175
311,500
353,487
Climate Segment
123,954
164,484
276,908
305,106
Elimination of intersegment sales
(11,241
)
(18,424
)
(20,716
)
(26,786
)
Net sales
$
896,984
$
1,150,042
$
1,868,176
$
2,160,044
Operating income:
Piping Systems Segment
$
151,142
$
211,579
$
314,996
$
372,067
Industrial Metals Segment
17,971
24,168
45,186
47,427
Climate Segment
57,067
50,747
111,055
87,447
Unallocated income (expenses)
(15,480
)
(17,624
)
(31,431
)
(25,370
)
Operating income
$
210,700
$
268,870
$
439,806
$
481,571
MUELLER INDUSTRIES,
INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Unaudited)
(In thousands)
July 1, 2023
December 31, 2022
ASSETS
Cash and cash equivalents
$
771,317
$
461,018
Short-term investments
127,051
217,863
Accounts receivable, net
459,467
380,352
Inventories
465,729
448,919
Other current assets
28,172
26,501
Total current assets
1,851,736
1,534,653
Property, plant, and equipment, net
386,928
379,950
Operating lease right-of-use assets
31,164
22,892
Other assets
306,592
304,904
Total assets
$
2,576,420
$
2,242,399
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current portion of debt
$
670
$
811
Accounts payable
155,096
128,000
Current portion of operating lease
liabilities
6,951
4,942
Other current liabilities
181,831
214,542
Total current liabilities
344,548
348,295
Long-term debt
1,267
1,218
Pension and postretirement liabilities
12,166
13,055
Environmental reserves
15,729
16,380
Deferred income taxes
18,821
16,258
Noncurrent operating lease liabilities
23,596
16,880
Other noncurrent liabilities
17,355
16,349
Total liabilities
433,482
428,435
Total Mueller Industries, Inc.
stockholders’ equity
2,116,230
1,790,914
Noncontrolling interests
26,708
23,050
Total equity
2,142,938
1,813,964
Total liabilities and equity
$
2,576,420
$
2,242,399
MUELLER INDUSTRIES,
INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited)
For the Six Months Ended
(In thousands)
July 1, 2023
June 25, 2022
Cash flows from operating
activities
Consolidated net income
$
354,644
$
366,772
Reconciliation of consolidated net income
to net cash provided by operating activities:
Depreciation and amortization
21,252
22,322
Stock-based compensation expense
12,459
5,171
Provision for doubtful accounts
receivable
(80
)
151
Loss (income) from unconsolidated
affiliates
269
(5,012
)
Insurance proceeds - noncapital
related
9,854
—
Gain on disposals of properties
(141
)
(6,800
)
Unrealized gain on short-term
investments
(20,820
)
—
Gain on insurance settlement
(19,466
)
—
Deferred income tax expense (benefit)
2,406
(373
)
Changes in assets and liabilities:
Receivables
(77,701
)
(146,438
)
Inventories
(12,149
)
(49,354
)
Other assets
(5,571
)
(6,095
)
Current liabilities
(14,460
)
28,906
Other liabilities
(976
)
(4,283
)
Other, net
1,310
(433
)
Net cash provided by operating
activities
250,830
204,534
Cash flows from investing
activities
Capital expenditures
(29,221
)
(23,248
)
Insurance proceeds - capital related
24,646
—
Purchase of short-term investments
(106,231
)
—
Proceeds from the maturity of short-term
investments
217,863
—
Proceeds from sales of properties
142
7,561
Dividends from unconsolidated
affiliates
797
1,609
Net cash provided by (used in) investing
activities
107,996
(14,078
)
Cash flows from financing
activities
Dividends paid to stockholders of Mueller
Industries, Inc.
(33,402
)
(27,968
)
Repurchase of common stock
(19,303
)
(33,469
)
Repayments of debt
(130
)
(111
)
(Repayment) issuance of debt by
consolidated joint ventures, net
(143
)
360
Net cash used to settle stock-based
awards
(2,588
)
(95
)
Net cash used in financing activities
(55,566
)
(61,283
)
Effect of exchange rate changes on
cash
4,825
(2,234
)
Increase in cash, cash equivalents, and
restricted cash
308,085
126,939
Cash, cash equivalents, and restricted
cash at the beginning of the period
465,296
90,376
Cash, cash equivalents, and restricted
cash at the end of the period
$
773,381
$
217,315
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230725228774/en/
Jeffrey A. Martin (901) 753-3226
Grafico Azioni Mueller Industries (NYSE:MLI)
Storico
Da Mag 2024 a Giu 2024
Grafico Azioni Mueller Industries (NYSE:MLI)
Storico
Da Giu 2023 a Giu 2024