EXHIBIT 19.1

 
TO OUR STOCKHOLDERS, CUSTOMERS, AND EMPLOYEES

Mueller was profitable in the second quarter of 2009, after reporting a small loss in the first quarter of the year.  Net income in the second quarter of 2009 was $6.0 million, or 16 cents per diluted share.  This compares with $27.0 million, or 72 cents per diluted share, for the same period of 2008.  Net sales for the second quarter of 2009 were $367.8 million compared with $753.5 million in 2008.  For the first half, net income was $3.5 million, or 9 cents per diluted share, on net sales of $694.4 million.  This compares with net income of $54.4 million, or $1.45 per diluted share, on net sales of $1.46 billion for the first half of 2008.

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 second quarter of 2009, the Comex average price of copper was 43 percent lower than in the second quarter of 2008.  Approximately $206 million of the decrease in net sales was attributable to lower unit volume in our core product lines primarily in the OEM segment.  Lower selling prices, primarily in the Plumbing & Refrigeration segment, accounted for approximately $146 million of the decrease in net sales.

Our financial condition remains strong, and, in fact, improved in the second quarter.  We ended the quarter with $334.0 million in cash and $581.2 million in working capital.  Our current ratio remains solid at 4.6 to 1, and our financial leverage is conservative with a debt to total capitalization ratio of 18.9 percent.

We believe the construction industry is at, or near, a "bottom," although the pace and the extent of recovery remain uncertain.  Mueller made rapid and extensive adjustments to its businesses as unit volumes declined, as a result of the national economic downturn.  We expect Mueller to emerge from the current economic malaise a stronger, more efficient and more competitive company.

Very Truly Yours,
 
 
 /S/ Harvey L. Karp  /S/ Gregory L. Christopher
 Harvey L. Karp   Gregory L. Christopher
 Chairman of the Board   Chief Executive Officer
 
July 21, 2009

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MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

   
For the Quarter Ended
    
For the Six Months Ended
  
   
June 27, 2009
    
June 28, 2008
    
June 27, 2009
    
June 28, 2008
  
   
(In thousands, except per share data)
  
                         
Net sales
  
$
367,800
    
$
753,471
    
$
694,358
    
$
1,457,579
  
                                 
Cost of goods sold
    
313,353
      
661,209
      
600,736
      
1,273,006
  
Depreciation and amortization
    
10,355
      
11,004
      
20,835
      
21,988
  
Selling, general, and administrative expense
    
30,316
      
34,618
      
61,474
      
72,909
  
                                 
Operating income
    
13,776
      
46,640
      
11,313
      
89,676
  
                                 
Interest expense
    
(2,482
)
    
(5,238
)
    
(5,118
)
    
(10,705
)
Other income, net
    
385
      
1,961
      
1,012
      
6,530
  
                                 
Income before income taxes
    
11,679
      
43,363
      
7,207
      
85,501
  
                                 
Income tax expense
    
(5,512
)
    
(15,339
)
    
(3,550
)
    
(29,570
)
                                 
Consolidated net income
    
6,167
      
28,024
      
3,657
      
55,931
  
                                 
Less: net income attributable to noncontrolling interest
    
(139
)
    
(1,010
)
    
(121
)
    
(1,562
)
                                 
Net income attributable to Mueller Industries, Inc.
  
$
6,028
    
$
27,014
    
$
3,536
    
$
54,369
  
                                 
Weighted average shares for basic earnings per share
    
37,143
      
37,119
      
37,143
      
37,108
  
Effect of dilutive stock options
    
120
      
340
      
97
      
269
  
                                 
Adjusted weighted average shares for diluted earnings per share
    
37,263
      
37,459
      
37,240
      
37,377
  
                                 
Basic earnings per share
  
$
0.16
    
$
0.73
    
$
0.10
    
$
1.47
  
                                 
Diluted earnings per share
  
$
0.16
    
$
0.72
    
$
0.09
    
$
1.45
  
                                 
Dividends per share
  
$
0.10
    
$
0.10
    
$
0.20
    
$
0.20
  
                                 

 
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MUELLER INDUSTRIES, INC.
  
CONDENSED CONSOLIDATED BALANCE SHEETS
  
(Unaudited)
  
                           
   
June 27,
    
December 27,
      
June 27,
    
December 27,
  
   
2009
    
2008
      
2009
    
2008
  
   
(In thousands)
      
(In thousands)
  
                           
ASSETS
            
LIABILITIES AND STOCKHOLDERS' EQUITY
        
                           
Cash and cash equivalents
  
$
 333,959    
$
 278,860  
Current portion of long-term debt
  
$
 9,629    
$
 24,184  
Accounts receivable, net
     207,238       219,035  
Accounts payable
     59,871       63,732  
Inventories
     169,118       210,609  
Other current liabilities
     91,678       113,668  
Other current assets
     32,033       46,322                    
                                   
Total current assets
     742,348       754,826  
    Total current liabilities
     161,178       201,584  
                                   
                 
Long-term debt
     158,226       158,726  
                 
Pension and postretirement liabilities
     39,688       38,452  
 
                
Environmental reserves
     23,352       23,248  
Property, plant, and equipment, net     268,017        276,927   Deferred income taxes      33,496        33,940  
Other assets
     152,131       151,160  
Other noncurrent liabilities
     1,417       1,698  
                                   
                 
    Total liabilities
     417,357       457,648  
                                   
                 
Stockholders' equity
     719,933       700,683  
                 
Noncontrolling interest
     25,206       24,582  
                                   
                 
    Total equity
     745,139       725,265  
                                   
   
$
 1,162,496    
$
 1,182,913      
$
 1,162,496    
$
 1,182,913  
                                   
 
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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