EXHIBIT 19.1
 
TO OUR STOCKHOLDERS, CUSTOMERS, AND EMPLOYEES

Mueller’s net income in the third quarter was $18.9 million, or 50 cents per diluted share, on net sales of $507.2 million.  This compares with net income of $18.7 million, or 50 cents per diluted share, on net sales of $419.9 million in the third quarter of 2009.  Year-to-date, the Company earned $68.4 million, or $1.81 per diluted share, which includes an insurance settlement gain of 59 cents per diluted share. This compares with net income of $22.2 million, or 59 cents per diluted share, for the same period of 2009.  Net sales for the first nine months of 2010 were $1.53 billion compared with net sales of $1.11 billion for the same period a year ago.

Our Plumbing & Refrigeration segment posted operating earnings of $11.5 million on net sales of $282.7 million compared with operating earnings of $16.0 million on net sales of $240.9 million in the third quarter of 2009.  The benefit of slightly higher shipments was offset by lower margins.  Our OEM segment posted operating earnings of $23.0 million during the third quarter of 2010 on net sales of $229.0 million, which compared with operating earnings of $16.5 million on net sales of $181.6 million for the same period in 2009.  Operating income improved in most product lines on better volumes.

Housing starts continue to stagnate at near the lowest levels of the past 50 years.  However, we believe starts are unlikely to decline further.  Also, the drop in non-residential construction appears to be bottoming out.  We expect to see improving business conditions in 2011, although the recovery in our industry will probably be uneven.  We are encouraged by Mueller’s solid performance in 2010 and we are well prepared for an upturn in the economy.

Very Truly Yours,
 
 /S/Harvey L. Karp  /S/Gregory L. Christopher  
 Harvey L. Karp   Gregory L. Christopher  
 Chairman of the Board  Chief Executive Officer  
 
October 19, 2010

 
1
 
 
MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

   
For the Quarter Ended
    
For the Nine Months Ended
  
   
September 25,
2010
    
September 26,
2009
    
September 25,
2010
    
September 26,
2009
  
   
(In thousands, except per share data)
  
                         
Net sales
  
$
507,240
    
$
419,890
    
$
1,532,896
    
$
1,114,248
  
                                 
Cost of goods sold
    
437,597
      
354,039
      
1,317,290
      
954,775
  
Depreciation and amortization
    
9,934
      
10,441
      
30,372
      
31,276
  
Selling, general, and administrative expense
    
28,810
      
27,593
      
99,601
      
89,067
  
Insurance settlement
    
12
      
—
      
(21,284
)
    
—
  
                                 
Operating income
    
30,887
      
27,817
      
106,917
      
39,130
  
                                 
Interest expense
    
(3,072
)
    
(2,435
)
    
(8,568
)
    
(7,553
)
Other income (expense), net
    
30
      
(324
)
    
(2,348
)
    
688
  
                                 
Income before income taxes
    
27,845
      
25,058
      
96,001
      
32,265
  
                                 
Income tax expense
    
(9,098
)
    
(6,246
)
    
(26,418
)
    
(9,796
)
                                 
Consolidated net income
    
18,747
      
18,812
      
69,583
      
22,469
  
                                 
Less net loss (income) attributable to noncontrolling interest
    
162
      
(146
)
    
(1,158
)
    
(267
)
                                 
Net income attributable to Mueller Industries, Inc.
  
$
18,909
    
$
18,666
    
$
68,425
    
$
22,202
  
                                 
Weighted average shares for basic earnings per share
    
37,710
      
37,474
      
37,657
      
37,253
  
Effect of dilutive stock-based awards
    
92
      
72
      
77
      
89
  
                                 
Adjusted weighted average shares for diluted earnings per share
    
37,802
      
37,546
      
37,734
      
37,342
  
                                 
Basic earnings per share
  
$
0.50
    
$
0.50
    
$
1.82
    
$
0.60
  
                                 
Diluted earnings per share
  
$
0.50
    
$
0.50
    
$
1.81
    
$
0.59
  
                                 
Dividends per share
  
$
0.10
    
$
0.10
    
$
0.30
    
$
0.30
  
                                 
 
 
2
 
 
MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
 
                           
   
September 25,
    
December 26,
      
September 25,
    
December 26,
  
   
2010
    
2009
      
2010
    
2009
  
   
(In thousands)
      
(In thousands)
  
ASSETS
            
LIABILITIES AND STOCKHOLDERS' EQUITY
        
Cash and cash equivalents
   $ 400,116     $ 346,001  
Current portion of long-term debt
   $ 23,437     $ 24,325  
Accounts receivable, net
     278,891       228,739  
Accounts payable
     80,140       73,837  
Inventories
     190,243       191,262  
Other current liabilities
     101,395       85,208  
Other current assets
     34,631       42,841                    
                                   
Total current assets
     903,881       808,843  
Total current liabilities
     204,972       183,370  
                                   
                 
Long-term debt
     158,226       158,226  
                 
Pension and postretirement liabilities
     43,589       44,320  
                 
Environmental reserves
     25,671       23,268  
Property, plant, and equipment, net
     235,079       250,395  
Deferred income taxes
     25,283       31,128  
Other assets
     123,781       120,903  
Other noncurrent liabilities
     891       887  
                                   
                 
Total liabilities
     458,632       441,199  
                                   
                 
Stockholders' equity
     777,025       713,167  
                 
Noncontrolling interest
     27,084       25,775  
                                   
                 
Total equity
     804,109       738,942  
                                   
    $ 1,262,741     $ 1,180,141       $ 1,262,741     $ 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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