Exhibit 19.1
 
TO OUR STOCKHOLDERS, CUSTOMERS, AND EMPLOYEES
 
    Mueller posted a net loss of $2.5 million, or 7 cents per diluted share, for the first quarter of 2009.  This is the first operating loss our Company has reported since 1991.  Business conditions were exceptionally difficult during the first quarter, but improved as the quarter progressed.  These results compare with net income of $27.4 million, or 73 cents per diluted share, for the same period of 2008.
 
    Mueller’s financial condition remains strong.  We ended the quarter with $300.3 million in cash and $554.3 million in working capital.  Total stockholders’ equity was $694.5 million, which equates to a book value per share of $18.70 of which $8.09 per share was cash.  Our current ratio remained solid at 4.8 to 1, and at quarter end, our financial leverage was modest with a debt to total capitalization ratio of 19.9 percent.
 
    Net sales of the Company's core product lines including copper tube, fittings, brass rod and forgings were substantially affected by the lower market values of copper and brass, the Company's principal raw materials, which are largely passed through to customers.  In the first quarter of 2009, the Comex average price of copper was 55.5 percent lower than in the first quarter of 2008.  Approximately $225 million of the decrease in net sales was attributable to lower unit volumes primarily in the OEM segment.  Lower selling prices, primarily in the Plumbing & Refrigeration segment, accounted for approximately $130 million of the decrease in net sales.
 
    Our Plumbing & Refrigeration segment posted operating earnings of $10.3 million on net sales of $190.4 million, which compares with prior year earnings of $25.1 million on net sales of $383.9 million.  The decline in operating income was primarily due to lower unit shipments across most product lines and higher per unit conversion costs due to lower production volume.
 
    Our OEM segment posted an operating loss of $6.3 million during the first quarter of 2009 on net sales of $ 138.4 million, which compares with operating earnings of $25.6 million on net sales of $326.2 million for the same period in 2008.  The loss was primarily due to lower volume and spreads and higher per unit conversion costs due to weak demand in the industrial and automotive markets.
 
    Our Annual Stockholders’ Meeting will be held at Mueller’s headquarters in Memphis, Tennessee on May 7, 2009.  We hope you can attend, but if you cannot, we urge you to sign and return your proxy card.
 
 
Very Truly Yours,
 
 /S/ Harvey L. Karp   /S/ Gregory L. Christopher
 Harvey L. Karp         Gregory L. Christopher
 Chairman of the Board     Chief Executive Officer
 
 
 
April 21, 2009

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.
 
1


CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
  
(In thousands, except per share data)
  
             
   
For the Quarter Ended
  
   
March 28,
    
March 29,
  
   
2009
    
2008
  
   
(Unaudited)
  
             
Net sales
  
$
 326,558    
$
 704,108  
                 
Cost of goods sold
     287,383       611,797  
Depreciation and amortization
     10,480       10,984  
Selling, general, and administrative expense
     31,158       38,291  
                 
Operating (loss) income
     (2,463 )     43,036  
Interest expense
     (2,636 )     (5,467 )
Other income, net
     627       4,569  
                 
(Loss) income before income taxes
     (4,472 )     42,138  
                 
Income tax benefit (expense)
     1,962       (14,231 )
                 
Consolidated net (loss) income
     (2,510 )     27,907  
                 
Less: net loss (income) attributable to noncontrolling interest
     18       (552 )
                 
Net (loss) income attributable to the Company
  
$
 (2,492 )  
$
 27,355  
                 
Basic (loss) earnings per share:
                
Weighted average shares outstanding
     37,143       37,089  
                 
Basic (loss) earnings per share
  
$
 (0.07 )  
$
 0.74  
                 
Diluted (loss) earnings per share:
                
Weighted average shares outstanding plus assumed conversions
     37,143       37,281  
                 
Diluted (loss) earnings per share
  
$
 (0.07 )  
$
 0.73  
                 
Dividends per share
  
$
 0.10    
$
 0.10  


2
 
 
CONDENSED CONSOLIDATED BALANCE SHEETS
  
(In thousands)
  
             
             
   
March 28,
    
December 27,
  
   
2009
    
2008
  
   
(Unaudited)
  
ASSETS
            
Cash and cash equivalents
  
$
 300,336    
$
 278,860  
Accounts receivable, net
     190,172       219,035  
Inventories
     170,968       210,609  
Other current assets
     37,596       46,322  
                 
    Total current assets
     699,072       754,826  
                 
Property, plant, and equipment, net
     270,626       276,927  
Other assets
     148,487       151,160  
                 
   
$
 1,118,185    
$
 1,182,913  
                 
LIABILITIES AND EQUITY
                
Current portion of long-term debt
  
$
 14,022    
$
24,184
  
Accounts payable
     52,476       63,732  
Other current liabilities
     78,262       113,668  
                 
Total current liabilities
     144,760       201,584  
                 
Long-term debt, less current portion
     158,726       158,726  
Pension and postretirement liabilities
     37,692       38,452  
Environmental reserves
     23,184       23,248  
Deferred income taxes
     32,663       33,940  
Other noncurrent liabilities
     1,441       1,698  
                 
Total liabilities
     398,466       457,648  
                 
Stockholders' equity
     694,458       700,683  
Noncontrolling interest
     25,261       24,582  
                 
Total equity
     719,719       725,265  
                 
   
$
 1,118,185    
$
 1,182,913  
                 
 
 

 
 
3