Exhibit 19.1

To Our Stockholders, Customers, and Employees

Mueller’s net income was $40.6 million, or $1.07 per diluted share, for the first quarter of 2011.  This compares with net income of $34.0 million, or 90 cents per diluted share, for the same period of 2010.

Both the first quarters of 2011 and 2010 had unusual items which were included in net income.  In 2011, income of 18 cents per diluted share was included, resulting from the favorable settlement of a legal action.  And, in the first quarter of 2010, income of 62 cents per diluted share was included in net income, resulting from an insurance claim.  Excluding these unusual items, Mueller’s net income for the first quarter of 2011 was $33.8 million, or 89 cents per diluted share, compared with $10.6 million, or 28 cents per diluted share, for the first quarter of 2010.  On this basis, net income more than tripled.

Net sales in the first quarter of 2011 amounted to $687.7 million, a 42 percent increase over net sales in the same quarter a year ago.  The first quarter of 2011 was a 14-week period while the first quarter of 2010 was a 13-week period.

Our Plumbing & Refrigeration segment posted operating earnings of $29.7 million.  Net sales for the first quarter of 2011 totaled $380.6 million.  In the same period a year ago, comparable segment earnings were $18.0 million (plus a $22.5 million gain on the settlement of an insurance claim as discussed above) on net sales of $256.7 million.  Volumes and margins were better across most product lines contributing to the improved earnings.

Our OEM segment posted operating earnings of $29.6 million during the first quarter of 2011 on net sales of $319.3 million, which compares with operating income of $16.1 million on net sales of $232.2 million for the same period in 2010.  The increase in earnings was primarily due to higher volume and lower costs.

The construction sector remains anemic.  On the residential side, foreclosures and the threats thereof weigh on weak demand caused by poor jobs growth, even though mortgage rates are low and favorable affordability conditions exist.  As for commercial construction, private nonresidential activity suffers from high vacancy rates.  Despite these difficult conditions, Mueller achieved a very good first quarter and we remain positive about the outlook for the year.

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 26, 2011

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 INCOME
 
(In thousands, except per share data)
 
             
   
For the Quarter Ended
 
   
April 2,
   
March 27,
 
   
2011
   
2010
 
   
(Unaudited)
 
             
Net sales
 
$
687,681
   
$
485,268
 
                 
Cost of goods sold
   
589,874
     
413,048
 
Depreciation and amortization
   
9,699
     
10,348
 
Selling, general, and administrative expense
   
35,369
     
37,323
 
Litigation settlement
   
(10,500
)
   
--
 
Insurance gain
   
--
     
(22,506
)
                 
Operating income
   
63,239
     
47,055
 
Interest expense
   
(3,348
)
   
(2,532
)
Other income, net
   
1,059
     
140
 
                 
Income  before income taxes
   
60,950
     
44,663
 
                 
Income tax expense
   
(20,408
)
   
(9,864
)
                 
Consolidated net income
   
40,542
     
34,799
 
                 
Net loss (income) attributable to noncontrolling interest
   
45
     
(841
)
                 
Net income attributable to the Company
 
$
40,587
   
$
33,958
 
                 
Basic earnings per share:
         
Weighted average shares outstanding
   
37,723
     
37,588
 
                 
Basic earnings  per share
 
$
1.08
   
$
0.90
 
                 
Diluted earnings per share:
         
Weighted average shares outstanding plus assumed conversions
   
37,986
     
37,682
 
                 
Diluted earnings per share
 
$
1.07
   
$
0.90
 
                 
Dividends per share
 
$
0.10
   
$
0.10
 
                 

 
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CONDENSED CONSOLIDATED BALANCE SHEETS
 
(In thousands)
 
             
             
   
April 2,
   
December 25,
 
   
2011
   
2010
 
   
(Unaudited)
 
ASSETS
           
Cash and cash equivalents
 
$
413,922
   
$
394,139
 
Accounts receivable, net
   
353,321
     
269,258
 
Inventories
   
231,270
     
209,892
 
Other current assets
   
36,583
     
39,025
 
                 
    Total current assets
   
1,035,096
     
912,314
 
                 
Property, plant, and equipment, net
   
227,890
     
229,498
 
Other assets
   
119,026
     
117,184
 
                 
   
$
1,382,012
   
$
1,258,996
 
                 
                 
LIABILITIES AND EQUITY
         
Current portion of long-term debt
 
$
43,117
   
$
32,020
 
Accounts payable
   
123,031
     
67,849
 
Other current liabilities
   
111,982
     
95,258
 
                 
Total current liabilities
   
278,130
     
195,127
 
                 
Long-term debt, less current portion
   
157,226
     
158,226
 
Pension and postretirement liabilities
   
40,995
     
40,939
 
Environmental reserves
   
23,263
     
23,902
 
Deferred income taxes
   
21,915
     
24,081
 
Other noncurrent liabilities
   
808
     
824
 
                 
Total liabilities
   
522,337
     
443,099
 
                 
Stockholders' equity
   
832,299
     
788,736
 
Noncontrolling interest
   
27,376
     
27,161
 
                 
Total equity
   
859,675
     
815,897
 
                 
   
$
1,382,012
   
$
1,258,996
 
                 
                 

 
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