Exhibit 19.1
TO OUR STOCKHOLDERS, CUSTOMERS, AND EMPLOYEES

Mueller’s financial condition is strong.  At the end of the third quarter we had $308.4 million in cash on hand, amounting to $8.30 per share.  Our ratio of debt to total capitalization is a modest 29.4 percent.  We have a bank credit line of $200 million that is fully available.  We expect to fund our operating requirements, including capital expenditures, from internal sources.

Net income for the third quarter was $18.7 million, or 50 cents per diluted share, which compares with net income of $31.3 million, or 84 cents per diluted share, for the third quarter of fiscal 2007.  The third quarter of 2008 includes a pre-tax charge of $3.3 million to write-down certain inventories to the lower-of-cost-or-market that resulted from falling copper prices.  Net sales for the three months ended September 27, 2008 were $665.5 million, compared with net sales of $693.7 million for the third quarter of 2007.  The third quarter of 2007 included a one-time gain of approximately $8.9 million (pre-tax) pertaining to a favorable copper antitrust litigation settlement.

Mueller’s earnings for the first nine months of 2008 were achieved despite the adverse conditions in the housing industry and the turbulence in the financial markets.  We remain focused on enhancing our operations and providing our customers with superior service.

We believe that our financial and operating strengths will allow us to take advantage of opportunities, which are likely to arise in the current economic environment.  One such opportunity arose on October 9, 2008 when we repurchased $122.9 million of our outstanding 6% Subordinated Debentures at 84 percent of face value.  This transaction will result in a fourth quarter gain of $19.1 million.

Very Truly Yours,
 
/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
   
October 21, 2008
  
   
 
 

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, market demand, pricing, and competitive and technological factors, among others, as set forth in the Company’s SEC filings.  These filings are available through our website at www.muellerindustries.com.

 
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MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
   
For the Quarter Ended
    
For the Nine Months Ended
  
   
September 27, 2008
    
September 29, 2007
    
September 27, 2008
    
September 29, 2007
  
   
(In thousands, except per share data)
  
                         
Net sales
  
$
665,496
    
$
693,682
    
$
2,123,075
    
$
2,076,111
  
                                 
Cost of goods sold
    
588,469
      
603,219
      
1,861,475
      
1,801,543
  
Depreciation and amortization
    
11,529
      
11,582
      
33,517
      
33,854
  
Selling, general, and administrative expense
    
35,674
      
36,246
      
108,583
      
110,144
  
Copper antitrust litigation settlement
    
—
      
(8,865
)
    
—
      
(8,865
)
                                 
Operating income
    
29,824
      
51,500
      
119,500
      
139,435
  
                                 
Interest expense
    
(5,050
)
    
(5,384
)
    
(15,755
)
    
(16,567
)
Other income, net
    
2,319
      
4,060
      
7,287
      
10,938
  
                                 
Income before income taxes
    
27,093
      
50,176
      
111,032
      
133,806
  
                                 
Income tax expense
    
(8,422
)
    
(18,852
)
    
(37,992
)
    
(47,171
)
                                 
Net income
  
$
18,671
    
$
31,324
    
$
73,040
    
$
86,635
  
                                 
Weighted average shares for basic earnings per share
    
37,136
      
37,075
      
37,117
      
37,054
  
Effect of dilutive stock options
    
176
      
234
      
238
      
185
  
                                 
Adjusted weighted average shares for diluted earnings per share
    
37,312
      
37,309
      
37,355
      
37,239
  
                                 
Basic earnings per share
  
$
0.50
    
$
0.84
    
$
1.97
    
$
2.34
  
                                 
Diluted earnings per share
  
$
0.50
    
$
0.84
    
$
1.96
    
$
2.33
  
                                 
Dividends per share
  
$
0.10
    
$
0.10
    
$
0.30
    
$
0.30
  
                                 
 

 


 
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MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)

 
September 27, 2008
    
December 29, 2007
  
   
(In thousands)
  
Assets
              
Cash and cash equivalents
$
308,351
    
$
308,618
  
Accounts receivable, net
  
350,290
      
323,003
  
Inventories
  
260,937
      
269,032
  
Other current assets
  
38,849
      
39,694
  
               
Total current assets
  
958,427
      
940,347
  
               
Property, plant, and equipment, net
  
294,530
      
308,383
  
Other assets
  
203,399
      
200,474
  
               
 
$
1,456,356
    
$
1,449,204
  
               
Liabilities and Stockholders’ Equity
              
Current portion of long-term debt (Note 1)
$
160,453
    
$
72,743
  
Accounts payable
  
125,239
      
140,497
  
Other current liabilities
  
120,439
      
121,813
  
               
Total current liabilities
  
406,131
      
335,053
  
               
Long-term debt
  
158,726
      
281,738
  
Pension and postretirement liabilities
  
34,980
      
36,071
  
Environmental reserves
  
8,853
      
8,897
  
Deferred income taxes
  
52,784
      
52,156
  
Other noncurrent liabilities
  
3,041
      
2,029
  
               
Total liabilities
  
664,515
      
715,944
  
               
Minority interest in subsidiary
  
26,558
      
22,765
  
               
Stockholders’ equity
  
765,283
      
710,495
  
               
 
$
1,456,356
    
$
1,449,204
  
               
Note 1 - September 27, 2008 balance includes $122.9 million principal of 6% Subordinated Debentures repurchased on October 9, 2008. 


 
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