Exhibit 19.1
To Our Stockholders, Customers, and Employees
 
    Mueller’s net income was $34.0 million, or 90 cents per diluted share, for the first quarter of 2010.  This compares with a net loss of $2.5 million, or 7 cents per diluted share, for the same period of 2009.  First quarter net sales for 2010 were $485.3 million compared with $326.6 million in 2009.
 
    During the first quarter of 2010, the Company recognized a gain of $22.5 million (or 62 cents per diluted share after tax) on the settlement of an insurance claim pertaining to the 2008 fire at its U.K. copper tube operation.  Further, the realization of this gain resulted in a tax benefit primarily from the utilization of U.K. net operating losses that were previously reserved.
 
    Net sales increased to $485.3 million primarily due to higher selling prices that reflect increased raw material costs.  The Comex average price of copper was $3.28 per pound in the first quarter of 2010, which compares with $1.57 in the first quarter of 2009.  Gross profit was $72.2 million in the first quarter which is the best of the last six consecutive quarters.
 
    Our Plumbing & Refrigeration segment posted operating earnings of $40.5 million that includes a $22.5 million gain on the settlement of an insurance claim as discussed above.  Net sales for the first quarter of 2010 were $256.7 million.  In the same period a year ago, segment earnings were $10.3 million on net sales of $190.4 million.  Volumes were mixed; tube volumes were lower, while fittings volume improved slightly.
 
    Our OEM segment posted operating earnings of $16.1 million during the first quarter of 2010 on net sales of $232.2 million, which compares with an operating loss of $6.3 million on net sales of $138.4 million for the same period in 2009.  The increase in earnings was primarily due to higher volume and better spreads as demand improved.
 
    Business conditions have shown signs of improvement as the economic recovery in the United States takes hold. Although the commercial construction sector remains sluggish, residential construction has improved somewhat from the trough.  We expect that residential construction gains will be modest for the remainder of the year, while improvement in commercial construction is more likely to occur in 2011.
 
    Our Annual Stockholders’ Meeting will be held at Mueller’s headquarters in Memphis, Tennessee on May 6, 2010.  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 20, 2010

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.

 
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
  
(In thousands, except per share data)
  
             
   
For the Quarter Ended
  
   
March 27,
    
March 28,
  
   
2010
    
2009
  
   
(Unaudited)
  
             
Net sales
   $ 485,268     $ 326,558  
                 
Cost of goods sold
     413,048       287,383  
Depreciation and amortization
     10,348       10,480  
Selling, general, and administrative expense
     37,323       31,158  
Insurance gain
     (22,506 )     -  
                 
Operating income (loss)
     47,055       (2,463 )
Interest expense
     (2,532 )     (2,636 )
Other income, net
     140       627  
                 
Income (loss) before income taxes
     44,663       (4,472 )
                 
Income tax (expense) benefit
     (9,864 )     1,962  
                 
Consolidated net income (loss)
     34,799       (2,510 )
                 
Less net (income) loss attributable to noncontrolling interest
     (841 )     18  
                 
Net income (loss) attributable to the Company
   $ 33,958     $ (2,492 )
                 
Basic earnings (loss) per share:
          
Weighted average shares outstanding
     37,588       37,143  
                 
Basic earnings (loss) per share
   $ 0.90     $ (0.07 )
                 
Diluted earnings (loss) per share:
          
Weighted average shares outstanding plus assumed conversions
     37,682       37,143  
                 
Diluted earnings (loss) per share
   $ 0.90     $ (0.07 )
                 
Dividends per share   $ 0.10     $ 0.10  
                 
 

 
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CONDENSED CONSOLIDATED BALANCE SHEETS
  
(In thousands)
  
             
             
   
March 27,
    
December 26,
  
   
2010
    
2009
  
   
(Unaudited)
  
ASSETS
            
Cash and cash equivalents
   $ 397,180     $ 346,001  
Accounts receivable, net
     256,950       228,739  
Inventories
     185,828       191,262  
Other current assets
     33,478       42,841  
                 
    Total current assets
     873,436       808,843  
                 
Property, plant, and equipment, net
     242,796       250,395  
Other assets
     121,902       120,903  
                 
    $ 1,238,134     $ 1,180,141  
                 
                 
LIABILITIES AND EQUITY
          
Current portion of long-term debt
   $ 27,739     $ 24,325  
Accounts payable
     89,061       73,837  
Other current liabilities
     99,306       85,208  
                 
Total current liabilities
     216,106       183,370  
                 
Long-term debt, less current portion
     158,226       158,226  
Pension and postretirement liabilities
     42,843       44,320  
Environmental reserves
     23,862       23,268  
Deferred income taxes
     28,675       31,128  
Other noncurrent liabilities
     923       887  
                 
Total liabilities
     470,635       441,199  
                 
Stockholders' equity
     740,815       713,167  
Noncontrolling interest
     26,684       25,775  
                 
Total equity
     767,499       738,942  
                 
    $ 1,238,134     $ 1,180,141  
                 
                 

 
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