Exhibit 19.1
 
TO OUR STOCKHOLDERS, CUSTOMERS, AND EMPLOYEES
 
Mueller’s net income in the second quarter of 2010 was $15.6 million, or 41 cents per diluted share.  This compares with net income of $6.0 million, or 16 cents per diluted share, for the same period of 2009.  Net sales for the second quarter of 2010 were $540.4 million compared with $367.8 million in 2009.  For the first half of 2010, net income was $49.5 million, or $1.31 per diluted share, on net sales of $1.03 billion.  This compares with net income of $3.5 million, or 9 cents per diluted share, on net sales of $694.4 million for the first half of 2009.
 
Net sales of the Company’s core product lines increased substantially due to the higher market values of copper and brass, the Company’s principal raw materials, which are largely passed through to customers.  In the second quarter of 2010, the Comex average price of copper was 48 percent higher than in the second quarter of 2009.
 
Our financial condition remains strong.  We ended the quarter with $397.2 million in cash equal to $10.53 per share.  Total stockholders’ equity was $755.4 million which equates to a book value of $20.03 per share.  Our current ratio remains solid at 4.0 to 1, and our financial leverage is conservative with a debt to total capitalization ratio of 20.3 percent.
 
Regarding the business outlook, uncertainty seems to be the underlying theme.  Looming foreclosures, weak jobs reports, an environment of higher taxes, and rising federal deficits are causing widespread anxiety.  However, we believe Mueller’s financial strength and industry leadership positions us to pursue opportunities as they arise.
 
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 20, 2010

 
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MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
 
   
For the Quarter Ended
    
For the Six Months Ended
  
   
June 26, 2010
    
June 27, 2009
    
June 26, 2010
    
June 27, 2009
  
   
(In thousands, except per share data)
  
                         
Net sales
  
$
540,388
    
$
367,800
    
$
1,025,656
    
$
694,358
  
                                 
Cost of goods sold
    
466,645
      
313,353
      
879,693
      
600,736
  
Depreciation and amortization
    
10,090
      
10,355
      
20,438
      
20,835
  
Selling, general, and administrative expense
    
33,468
      
30,316
      
70,791
      
61,474
  
Insurance settlement
    
1,210
      
—
      
(21,296
)
    
—
  
                                 
Operating income
    
28,975
      
13,776
      
76,030
      
11,313
  
                                 
Interest expense
    
(2,964
)
    
(2,482
)
    
(5,496
)
    
(5,118
)
Other (expense) income, net
    
(2,518
)
    
385
      
(2,378
)
    
1,012
  
                                 
Income before income taxes
    
23,493
      
11,679
      
68,156
      
7,207
  
                                 
Income tax expense
    
(7,456
)
    
(5,512
)
    
(17,320
)
    
(3,550
)
                                 
Consolidated net income
    
16,037
      
6,167
      
50,836
      
3,657
  
                                 
Less net income attributable to noncontrolling interest
    
(479
)
    
(139
)
    
(1,320
)
    
(121
)
                                 
Net income attributable to Mueller Industries, Inc.
  
$
15,558
    
$
6,028
    
$
49,516
    
$
3,536
  
                                 
Weighted average shares for basic earnings per share
    
37,674
      
37,143
      
37,631
      
37,143
  
Effect of dilutive stock options
    
43
      
120
      
69
      
97
  
                                 
Adjusted weighted average shares for diluted earnings per share
    
37,717
      
37,263
      
37,700
      
37,240
  
                                 
Basic earnings per share
  
$
0.41
    
$
0.16
    
$
1.32
    
$
0.10
  
                                 
Diluted earnings per share
  
$
0.41
    
$
0.16
    
$
1.31
    
$
0.09
  
                                 
Dividends per share
  
$
0.10
    
$
0.10
    
$
0.20
    
$
0.20
  
                                 
 
 
2
 
 
MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
                           
   
June 26,
    
December 26,
      
June 26,
    
December 26,
  
   
2010
    
2009
      
2010
    
2009
  
   
(In thousands)
      
(In thousands)
  
ASSETS
            
LIABILITIES AND STOCKHOLDERS' EQUITY
        
Cash and cash equivalents
   $ 397,155     $ 346,001  
Current portion of long-term debt
   $ 40,765     $ 24,325  
Accounts receivable, net
     286,578       228,739  
Accounts payable
     98,336       73,837  
Inventories
     185,054       191,262  
Other current liabilities
     86,453       85,208  
Other current assets
     35,181       42,841                    
                                   
Total current assets
     903,968       808,843  
Total current liabilities
     225,554       183,370  
                                   
                 
Long-term debt
     158,226       158,226  
                 
Pension and postretirement liabilities
     43,082       44,320  
                 
Environmental reserves
     25,630       23,268  
Property, plant, and equipment, net
     237,743       250,395  
Deferred income taxes
     28,364       31,128  
Other assets
     122,491       120,903  
Other noncurrent liabilities
     860       887  
                                   
                 
Total liabilities
     481,716       441,199  
                                   
                 
Stockholders' equity
     755,436       713,167  
                 
Noncontrolling interest
     27,050       25,775  
                                   
                 
Total equity
     782,486       738,942  
                                   
    $ 1,264,202     $ 1,180,141       $ 1,264,202     $ 1,180,141  
 
 
    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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