TO OUR STOCKHOLDERS
The first quarter of 1995 was the best quarter in Mueller's history.
Sales, net earnings, pounds of product sold and earnings per share, all
reached record levels.
Earnings increased by 140 percent to $10.1 million, compared with
earnings of $4.2 million for the first quarter of 1994. Earnings per share
increased to $1.06 on 9,449,000 average shares outstanding, compared with 40
cents per share on 10,437,000 average shares outstanding for the same quarter
of the prior year.
Net sales for the first quarter of 1995 totalled $171.8 million, an
increase of 42 percent over sales of $120.8 million for the first quarter of
1994. Furthermore, we shipped 12.4 percent more pounds of product for the
quarter as compared with the same period the year before.
Our manufacturing operations performed very well during the first
quarter. Our copper and plastic fittings business operated at near full
capacity and the same was true of our brass rod mill. Similarly, copper
tubing operations had a busy quarter.
We are particularly pleased with our first quarter performance because
there were several adverse factors which effected our marketplace. Extensive
rainstorms in California and in much of the South slowed construction
activities. However, we anticipate a rebound of activity as the weather
improves this spring and summer. Also, due to higher interest rates,
builders, at the moment, have turned more cautious.
Nonetheless, Mueller posted substantially increased profits, and we
believe this was largely due to the progress we have made in improving
productivity while at the same time containing selling, general, and
administrative costs. Additional productivity improvements are also expected
as our major capital improvement programs are implemented during 1995. These
programs include the modernization of our copper tube facility in Fulton,
Mississippi, construction of a high-volume copper fittings plant, also in
Fulton, Mississippi, and the installation of a new indirect extrusion press at
our brass rod mill in Port Huron, Michigan.
Our outlook for the balance of 1995 remains optimistic since we believe
Mueller's operations will continue to improve as our capital programs take
effect.
Our Annual Stockholders' Meeting will be held in Wichita, Kansas on May
9, 1995. By now, you should have received the notice of the meeting as well
as the proxy material and the 1994 Annual Report. We welcome your attendance,
but if you cannot attend, we urge you to sign and return your proxy card.
Sincerely,
/s/Harvey L. Karp
Harvey L. Karp
Chairman of the Board
/s/William D. O'Hagan
William D. O'Hagan
President and Chief
Executive Officer
April 24, 1995
MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In thousands, except share data)
For the Quarter Ended
April 1, 1995 March 26, 1994
Net sales $ 171,770 $ 120,812
Costs and expenses 157,173 113,173
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Operating income 14,597 7,639
Non operating income (expense), net 96 (992)
------- -------
Income before taxes 14,693 6,647
Income tax expense 4,643 2,465
------- -------
Net income $ 10,050 $ 4,182
======= =======
Earnings per common
and common equivalent share:
Primary $ 1.06 $ 0.40
======= =======
Fully diluted $ 1.06 $ 0.40
======= =======
MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except share data)
April 1, 1995 December 31, 1994
Assets
Current assets $ 198,647 $ 183,551
Property, plant and equipment, net 201,405 196,772
Other assets 45,632 50,432
------- -------
$ 445,684 $ 430,755
======= =======
Liabilities and Stockholders' Equity
Current liabilities $ 78,444 $ 67,221
Long-term debt 72,398 76,125
Other noncurrent liabilities 44,783 45,461
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Total liabilities 195,625 188,807
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Stockholders' equity:
Common stock 100 100
Paid-in capital, common 254,044 254,251
Retained earnings since
January, 1991 32,037 21,987
Cumulative translation adjustments (2,814) (2,832)
Treasury common stock at cost (33,308) (31,558)
------- -------
Total stockholders' equity 250,059 241,948
------- -------
$ 445,684 $ 430,755
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Book value per share $ 28.93 $ 27.81
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DIRECTORS AND OFFICERS
DIRECTORS
Harvey L. Karp Chairman of the Board
Mueller Industries, Inc.
Robert B. Hodes (1)(3) Partner
Willkie Farr & Gallagher
Allan Mactier (1)(3) Private Investor
William D. O'Hagan President and Chief Executive Officer
Mueller Industries, Inc.
Robert J. Pasquarelli (1)(2) Chief Executive Officer of New Jersey
Steel Corporation
OFFICERS
Harvey L. Karp Chairman of the Board
William D. O'Hagan President and Chief Executive Officer
Earl W. Bunkers Executive Vice President and
Chief Financial Officer
Harvey W. Clements Vice President and General Manager - Tube
Division
John B. Hansen Vice President and General Manager- Fittings
Division
William H. Hensley Vice President, General Counsel and Secretary
Richard G. Miller Vice President and Chief Information Officer
Lee R. Nyman Vice President - Manufacturing/Management
Engineering
James H. Rourke Vice President and General Manager - Industrial
Division
Roy C. Harris Corporate Controller
Kent A. McKee Treasurer and Assistant Secretary
Mueller Industries, Inc./2959 N. Rock Road/Wichita, KS 67226/(316) 636-6300
[FN]
(1) Member of the Audit Committee
(2) Member of the Compensation Committee
(3) Member of the Nominating Committee