Wed, Jul 24, 8:17 PM (45 days ago)
Mueller Industries Inc. reported a mixed performance for the quarter ended June 29, 2024. Net sales increased by 11.2% year-over-year to $997.7 million, driven by higher selling prices and the acquisition of Nehring Electrical Works Company. However, net income attributable to Mueller Industries fell by 9.9% to $160.2 million, partly due to an absence of the prior year's $19.5 million insurance gain. Operating income was stable at $210.0 million, but the operating margin decreased slightly to 21.1% from 23.5%. The cost of goods sold rose to 72.7% of net sales, up from 71.3%. Interest income doubled, but other income diminished due to higher environmental remediation costs. The balance sheet showed a decline in cash and cash equivalents to $825.7 million from $1.17 billion, mainly due to the $566.6 million acquisition. Accounts receivable and inventories increased, indicating higher operational activity. The company maintains a strong liquidity position with $371.1 million available under its credit facility. Future uncertainties include fluctuating raw material costs and foreign exchange rates, which could impact profitability. The effective tax rate remained at 26%, consistent with the previous year. The company continues to focus on operational efficiencies and strategic acquisitions to drive future growth.