Exhibit 99.1 Mueller Industries, Inc. Reports Fourth Quarter and Fiscal 2003 Earnings MEMPHIS, Tenn., Feb. 3 /PRNewswire-FirstCall/ -- Harvey L. Karp, Chairman of Mueller Industries, Inc. (NYSE: MLI), announced today that Mueller's earnings from continuing operations for fiscal 2003 were $1.19 per diluted share, compared with the $1.92 reported a year ago. Income from continuing operations for the year was $44.2 million, compared with $71.2 million for the prior year. Net sales for the twelve-month period were $999.1 million, versus $953.0 million in 2002. Net income for 2003 was $45.4 million. For 2002, net income of $78.0 million includes a gain on the disposition of Utah Railway Company of $21.1 million and a loss on the disposition of French manufacturing operations of $13.4 million, both net of income taxes. For the quarter ended December 27, 2003, income from continuing operations was $11.0 million, or 30 cents per diluted share, which compares with $8.8 million, or 24 cents per diluted share for the same period a year ago. Net sales for the three months ended December 27, 2003, were $267.8 million, compared with net sales of $216.1 million for the 2002 period. Financial and Operating Highlights Regarding the 2003 results, Mr. Karp said: * "Mueller ended the year with $255.1 million in cash. * "We're virtually debt free, as cash-on-hand significantly exceeds total debt of $14.3 million. * "Our current ratio remains excellent at 5 to 1 and our working capital is $456.8 million. * "Cash from continuing operations was $73.4 million during 2003. We continue to generate positive cash flow; should our operating results improve in 2004, we expect cash flow to increase significantly. * "Capital expenditures totaled $27.2 million during 2003. For the fiscal year 2004, we expect capital expenditures to be approximately $25 million, which is less than depreciation. * "We invested $10.8 million in acquisitions in early 2003, increasing our interest in Conbraco Industries, Inc. * "Stockholders' equity has grown to $814.9 million, or $23.77 per share. * "Pounds of product shipped were 695.8 million in 2003 compared with 694.0 million for 2002. * "As core product line spreads narrowed early in the year, gross profit and operating income bottomed out in the first quarter, then steadily improved throughout the year. Selling, general, and administrative expenses increased over 2002 primarily due to higher distribution costs, employee benefit plan costs, and increased provision for doubtful accounts. * "Our Standard Products Division posted operating earnings of $54.1 million, compared to $79.0 million in 2002. Standard Products Division's net sales were $717.6 million for the year, compared with $679.3 million for 2002. Operating results were negatively impacted by lower spreads in copper tube. Spreads bottomed out in the first quarter of 2003 and improved modestly throughout the balance of the year. * "Our Industrial Products Division posted operating earnings of $11.7 million during the year on net sales of $292.0 million, which compares with operating earnings of $20.4 million on net sales of $279.6 million for 2002." Discussion of Income Taxes During 2003, the Company recognized a deferred income tax benefit related to a 1999 tax operating loss that resulted from the sale of a subsidiary in that tax year. Without this deferred income tax benefit, the Company's income from continuing operations for 2003 would have been approximately $34.9 million, or 95 cents per diluted share. During 2002, the Company sold the Utah Railway Company. This transaction generated a capital gain for income tax purposes. Without the income tax benefits related to the transaction, the Company's income from continuing operations for 2002 would have been approximately $58.5 million, or $1.58 per diluted share. Business Outlook for 2004 Discussing the outlook for the next fiscal year, Mr. Karp said, "The U.S. housing industry is poised for another strong year in 2004. Housing starts in 2003 totaled 1.8 million units, and housing economists are predicting a similarly high number for 2004. In addition, mortgage rates remain extraordinarily attractive and housing affordability statistics show that more people than ever can afford to buy homes. "Moreover, commercial construction, which for the past several years has been lagging, is expected to rebound in 2004. This is an important market for Mueller, as it absorbs many of our high value-added products. "All of the above is in the context of an improving national economy, which, in the third quarter of 2003, experienced the highest quarterly growth rate in the past 20 years." 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, market demand, pricing, and competitive and technological factors, among others, as set forth in the company's SEC filings. Mueller Industries, Inc. is a leading manufacturer of copper tube and fittings; brass and copper alloy rod, bar and shapes; aluminum and brass forgings; aluminum and copper impact extrusions; plastic fittings and valves; refrigeration valves and fittings; and fabricated tubular products. Mueller's operations are located throughout the United States and in Canada, Mexico, and Great Britain. MUELLER INDUSTRIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) For the Quarter Ended For the Year Ended Dec. 27, Dec. 28, Dec. 27, Dec. 28, 2003 2002 2003 2002 (Unaudited) (Unaudited) Net sales $267,782 $216,129 $999,078 $952,983 Cost of goods sold 218,513 175,322 815,849 744,781 Depreciation and amortization 9,715 9,924 38,954 37,440 Selling, general, and administrative expense 23,719 19,371 94,891 85,006 Operating income 15,835 11,512 49,384 85,756 Interest expense (298) (304) (1,168) (1,460) Environmental expense (395) (751) (1,165) (1,639) Other income, net 820 1,666 4,385 5,810 Income from continuing operations before income taxes 15,962 12,123 51,436 88,467 Income tax expense (4,917) (3,349) (7,215) (17,290) Income from continuing operations 11,045 8,774 44,221 71,177 Loss from operation of discontinued operations, net of income taxes - (393) (539) (886) Gain (loss) on disposition of discontinued operations, net of income taxes - (13,422) 1,699 7,701 Net income $11,045 $(5,041) $45,381 $77,992 Earnings (loss) per share: Basic earnings (loss) per share: Weighted average shares outstanding 34,269 34,255 34,264 33,993 From continuing operations $0.32 $0.25 $1.29 $2.09 From discontinued operations - (0.01) (0.02) (0.03) From disposition of discontinued operations - (0.39) 0.05 0.23 Basic earnings (loss) per share $0.32 $(0.15) $1.32 $2.29 Diluted earnings (loss) per share: Weighted average shares outstanding plus assumed conversions 37,000 36,825 36,861 37,048 From continuing operations $0.30 $0.24 $1.19 $1.92 From discontinued operations - (0.01) (0.01) (0.02) From disposition of discontinued operations - (0.37) 0.05 0.21 Diluted earnings (loss) per share $0.30 $(0.14) $1.23 $2.11 MUELLER INDUSTRIES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) December 27, December 28, 2003 2002 (Unaudited) ASSETS Cash and cash equivalents $255,088 $217,601 Accounts receivable, net 163,006 132,427 Inventories 140,548 142,953 Other current assets 11,713 7,366 Total current assets 570,355 500,347 Property, plant, and equipment, net 345,537 352,469 Other assets 139,292 135,131 $1,055,184 $987,947 LIABILITIES AND STOCKHOLDERS' EQUITY Current portion of long-term debt $2,835 $4,161 Accounts payable 42,081 41,004 Accrued wages and other employee costs 25,631 26,199 Other current liabilities 42,959 34,987 Total current liabilities 113,506 106,351 Long-term debt 11,437 14,005 Pension and postretirement liabilities 31,643 35,550 Environmental reserves 9,560 9,110 Deferred income taxes 63,734 59,269 Other noncurrent liabilities 10,238 9,718 Total liabilities 240,118 234,003 Minority interest in subsidiaries 208 421 Stockholders' equity 814,858 753,523 $1,055,184 $987,947 MUELLER INDUSTRIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) For the Year Ended December 27, December 28, 2003 2002 (Unaudited) Operating activities: Net income from continuing operations $44,221 $71,177 Reconciliation of net income from continuing operations to net cash provided by operating activities: Depreciation and amortization 38,954 37,440 Deferred income taxes (287) 9,686 Loss (gain) on disposal of properties 290 (485) Minority interest in subsidiaries, net of dividend paid (213) 150 Income tax benefit from exercise of stock options 18 13,243 Changes in assets and liabilities, net (9,567) (6,994) Net cash provided by operating activities 73,416 124,217 Investing activities: Capital expenditures (27,236) (23,265) Acquisition of businesses (10,806) (27,777) Proceeds from sale of discontinued operations - 55,403 Other, net 1,861 10,610 Net cash (used in) provided by investing activities (36,181) 14,971 Financing activities: Repayments of long-term debt (3,894) (34,119) Proceeds from the sale of treasury stock 389 3,204 Acquisition of treasury stock - (14,754) Net cash used in financing activities (3,505) (45,669) Effect of exchange rate changes on cash 3,505 719 Increase in cash and cash equivalents 37,235 94,238 Cash provided by discontinued operations 252 1,501 Cash and cash equivalents at the beginning of the year 217,601 121,862 Cash and cash equivalents at the end of the year $255,088 $217,601 SOURCE Mueller Industries, Inc. -0- 02/03/2004 /CONTACT: Kent A. McKee of Mueller Industries, Inc., +1-901-753-3208/ (MLI) CO: Mueller Industries, Inc. ST: Tennessee IN: MNG CST SU: ERN