EXHIBIT 19.1
TO OUR STOCKHOLDERS, CUSTOMERS, AND EMPLOYEES

Mueller’s net income in the third quarter was $10.5 million, or 27 cents per diluted share, on net sales of $585.8 million.  This compares with net income of $18.9 million, or 50 cents per diluted share, on net sales of $507.2 million in the third quarter of 2010.  The third quarter 2011 results were affected by the precipitous decline in copper prices, resulting in a pretax charge of $6.8 million (or approximately 12 cents per diluted share after tax).  Without these charges, earnings would have been 39 cents per diluted share.

Year-to-date, the Company earned $73.4 million, or $1.92 per diluted share, which includes a gain of 18 cents per diluted share related to a favorable litigation settlement.  For the same period of 2010, net income was $68.4 million, or $1.81 per diluted share, which includes an insurance settlement gain of 59 cents per diluted share.  Net sales for the first nine months of 2011 were $1.93 billion compared with net sales of $1.53 billion for the same period a year ago.

Our Plumbing & Refrigeration segment posted operating earnings of $13.9 million on net sales of $325.8 million compared with operating earnings of $11.5 million on net sales of $282.7 million in the third quarter of 2010.  The increase in net sales was due to higher selling prices on 5.1 percent lower unit volume.  Our OEM segment posted operating earnings of $12.2 million during the third quarter of 2011 on net sales of $266.6 million, which compared with operating earnings of $23.0 million on net sales of $229.0 million for the same period in 2010.  The increase in net sales was attributable to higher selling prices on 8.1 percent lower unit volume.

In September, a portion of our Wynne, Arkansas, manufacturing operations was damaged by fire.  Fortunately, no one was injured.   Our efforts in providing our customers with the full range of products required have been successful.

The near-term outlook for the housing sector continues to be subdued; however, the construction of multi-family housing is improving.  Commercial construction is also showing glimmers of better times ahead.  We believe that the employment picture must brighten as a prerequisite for improvement in the housing market.

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 25, 2011
  
 
 
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MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
 
   
For the Quarter Ended
    
For the Nine Months Ended
  
   
October 1,
2011
    
September 25,
2010
    
October 1,
2011
    
September 25,
2010
  
   
(In thousands, except per share data)
  
                         
Net sales
  
$
585,809
    
$
507,240
    
$
1,926,413
    
$
1,532,896
  
                                 
Cost of goods sold
    
523,984
      
437,597
      
1,687,735
      
1,317,290
  
Depreciation and amortization
    
8,716
      
9,934
      
27,581
      
30,372
  
Selling, general, and administrative expense
    
34,245
      
28,810
      
102,944
      
99,601
  
Litigation settlement
    
—
      
—
      
(10,500
)
    
—
  
Insurance settlement
    
—
      
12
      
—
      
(21,284
)
                                 
Operating income
    
18,864
      
30,887
      
118,653
      
106,917
  
                                 
Interest expense
    
(2,822
)
    
(3,072
)
    
(9,004
)
    
(8,568
)
Other income (expense), net
    
102
      
30
      
1,425
      
(2,348
)
                                 
Income before income taxes
    
16,144
      
27,845
      
111,074
      
96,001
  
                                 
Income tax expense
    
(5,403
)
    
(9,098
)
    
(37,060
)
    
(26,418
)
                                 
Consolidated net income
    
10,741
      
18,747
      
74,014
      
69,583
  
                                 
Net (income) loss attributable to noncontrolling interest
    
(266
)
    
162
      
(621
)
    
(1,158
)
                                 
Net income attributable to Mueller Industries, Inc.
  
$
10,475
    
$
18,909
    
$
73,393
    
$
68,425
  
                                 
Weighted average shares for basic earnings per share
    
37,878
      
37,710
      
37,779
      
37,657
  
Effect of dilutive stock-based awards
    
483
      
92
      
367
      
77
  
                                 
Adjusted weighted average shares for diluted earnings per share
    
38,361
      
37,802
      
38,146
      
37,734
  
                                 
Basic earnings per share
  
$
0.28
    
$
0.50
    
$
1.94
    
$
1.82
  
                                 
Diluted earnings per share
  
$
0.27
    
$
0.50
    
$
1.92
    
$
1.81
  
                                 
Dividends per share
  
$
0.10
    
$
0.10
    
$
0.30
    
$
0.30
  
 
 
 
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MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
 
                           
   
October 1,
    
December 25,
      
October 1,
    
December 25,
  
   
2011
    
2010
      
2011
    
2010
  
   
(In thousands)
      
(In thousands)
  
ASSETS
            
LIABILITIES AND STOCKHOLDERS' EQUITY
        
Cash and cash equivalents
   $ 448,853     $ 394,139  
Current portion of debt
   $ 52,827     $ 32,020  
Accounts receivable, net
     315,709       269,258  
Accounts payable
     65,743       67,849  
Inventories
     214,868       209,892  
Other current liabilities
     113,823       95,258  
Other current assets
     53,366       39,025                    
                                   
Total current assets
     1,032,796       912,314  
Total current liabilities
     232,393       195,127  
                                   
                 
Long-term debt
     156,726       158,226  
                 
Pension and postretirement liabilities
     39,649       40,939  
                 
Environmental reserves
     23,111       23,902  
Property, plant, and equipment, net
     207,761       229,498  
Deferred income taxes
     19,788       24,081  
Other assets
     118,353       117,184  
Other noncurrent liabilities
     2,187       824  
                                   
                 
Total liabilities
     473,854       443,099  
                                   
                 
Stockholders' equity
     856,189       788,736  
                 
Noncontrolling interest
     28,867       27,161  
                                   
                 
Total equity
     885,056       815,897  
                                   
    $ 1,358,910     $ 1,258,996       $ 1,358,910     $ 1,258,996  
 
 
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 and energy, market demand, pricing, competitive and technological factors, and the availability of financing, 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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