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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