Exhibit 99.1 Mueller Industries, Inc. Reports Third Quarter Earnings MEMPHIS, Tenn., Oct. 14 /PRNewswire-FirstCall/ -- Quarterly and Year-to-Date Earnings Harvey L. Karp, Chairman of Mueller Industries, Inc. (NYSE: MLI), today announced the Company's results for the third quarter and nine-months ended September 25, 2004. Operating income increased more than sixty percent to $24.5 million for the third quarter of 2004 which compares with $15.0 million in the third quarter of 2003. For the third quarter of 2004, earnings per diluted share were 51 cents compared with 58 cents in the third quarter of 2003. Income from continuing operations was $18.8 million for the third quarter of 2004 compared with $19.7 million for the third quarter of fiscal 2003. Net sales for the three months ended September 25, 2004, were $322.5 million compared with net sales of $251.1 million for the same quarter of last year. During the third quarter of 2003, the Company recognized a deferred income tax benefit of $9.3 million 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 would have been approximately $10.4 million, or 28 cents per diluted share, in the third quarter of 2003. Net sales in the first nine months of 2004 were $1.05 billion compared with net sales of $731.3 million for the same period of 2003. For the nine- month period of 2004, operating income increased to $87.6 million compared with $33.5 million in 2003. Year-to-date, net income was $63.8 million, or $1.73 per diluted share, compared with $34.3 million, or 93 cents per diluted share, for the same period last year. Financial Highlights Regarding the results, Mr. Karp said, "Mueller's third quarter was solid and our financial position remains excellent." * "Pounds of product shipped were 170.8 million in the third quarter of 2004 compared with 175.0 million for 2003. Third quarter 2004 volume decreased from second quarter levels as customers adjusted their inventory levels. First half demand may have been influenced by concerns of availability and rapidly rising material costs. * "Our Standard Products Division posted operating earnings of $22.2 million in the third quarter, compared with $15.6 million in the third quarter of 2003. Standard Products Division's net sales were $233.7 million for third quarter, compared with $184.3 million for 2003. Operating results increased on the strength of higher margins, particularly copper tube and fittings, offset by lower volumes. * "Results at our European operations continue to improve. * "Our Industrial Products Division posted operating earnings of $6.0 million during the quarter on net sales of $92.6 million, which compares with operating income of $2.9 million and net sales of $70.1 million for the same period a year ago. * "Capital expenditures totaled $13.1 million during the first nine months of 2004. For the fiscal year 2004, we expect capital expenditures to be approximately $20 million. * "We invested $14.6 million during the quarter to acquire Vemco Brasscapri, Ltd. which distributes plumbing products in the United Kingdom. Vemco's net sales are approximately $26 million annually. This acquisition will broaden our product line in the United Kingdom and should provide opportunities to leverage our manufacturing operations." Special Dividend The Company's previously announced special dividend will be paid on October 26, 2004 to stockholders of record on October 12, 2004. In declaring the special dividend, the Board of Directors considered many factors, including that Mueller was over-capitalized. By recapitalizing Mueller through this special dividend, the Company is returning to its stockholders the significant value that has accumulated from recent years' operations. Further, the Company's return on equity should improve substantially by reducing the capital employed. Upon distribution of the special dividend, stockholders' equity will be approximately $333 million, cash will decrease by approximately $240 million, long-term debt will increase by approximately $305 million, and interest expense will increase by approximately $18 million annually. After the distribution, the Company expects to have adequate financial resources to meet ordinary capital expenditure, working capital and operating requirements, although from time to time additional borrowings may be necessary. The Company has posted on its website ( muellerindustries.com ) additional information about the special dividend in the form of questions and answers. Business Outlook Discussing the business outlook, Mr. Karp said, "Our national economy is growing, capital investment is rising, and housing starts and permits remain positive. Thirty-year fixed rate mortgages are below 6 percent. These conditions are consistent with a strong continuing demand for Mueller's products." 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. 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, competitive and technological factors, and the availability of financing, among others, as set forth in the Company's SEC filings. MUELLER INDUSTRIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data) For the Quarter Ended For the Nine Months Ended Sept. 25, Sept. 27, Sept. 25, Sept. 27, 2004 2003 2004 2003 (Unaudited) (Unaudited) Net sales $322,512 $251,053 $1,049,293 $731,296 Cost of goods sold 263,188 201,960 847,937 597,336 Depreciation and amortization 10,278 9,777 30,402 29,239 Selling, general, and administrative expense 24,529 24,301 79,410 71,172 Impairment charge - - 3,941 - Operating income 24,517 15,015 87,603 33,549 Interest expense (236) (267) (659) (870) Environmental expense (240) (306) (678) (770) Other income, net 1,597 826 5,839 3,565 Income from continuing operations before before income taxes 25,638 15,268 92,105 35,474 Income tax (expense) benefit (6,884) 4,469 (28,343) (2,298) Income from continuing operations 18,754 19,737 63,762 33,176 Loss from operation of discontinued operations, net of tax - - - (539) Gain on disposition of discontinued operations - 1,699 - 1,699 Net income $18,754 $21,436 $63,762 $34,336 Earnings (loss) per share: Basic earnings (loss) per share: Weighted average shares outstanding 35,283 34,267 34,973 34,262 From continuing operations $0.53 $0.58 $1.82 $0.97 From discontinued operations - - - (0.02) From gain on disposition of discontinued operations - 0.05 - 0.05 Basic earnings per share $0.53 $0.63 $1.82 $1.00 Diluted earnings (loss) per share: Weighted average shares outstanding plus assumed conversions 36,914 36,857 36,905 36,812 From continuing operations $0.51 $0.53 $1.73 $0.89 From discontinued operations - - - (0.01) From gain on disposition of discontinued operations - 0.05 - 0.05 Diluted earnings per share $0.51 $0.58 $1.73 $0.93 MUELLER INDUSTRIES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) September 25, December 27, 2004 2003 (Unaudited) ASSETS Cash and cash equivalents $291,915 $255,088 Accounts receivable, net 183,957 163,006 Inventories 182,564 140,548 Other current assets 17,746 11,713 Total current assets 676,182 570,355 Property, plant, and equipment, net 328,636 345,537 Other assets 145,425 139,292 $1,150,243 $1,055,184 LIABILITIES AND STOCKHOLDERS' EQUITY Current portion of long-term debt $260 $2,835 Accounts payable 56,478 42,081 Other current liabilities 83,559 68,590 Total current liabilities 140,297 113,506 Long-term debt 11,236 11,437 Pension and postretirement liabilities 32,437 31,643 Environmental reserves 9,734 9,560 Deferred income taxes 68,418 63,734 Other noncurrent liabilities 10,182 10,238 Total liabilities 272,304 240,118 Minority interest in subsidiaries 57 208 Stockholders' equity 877,882 814,858 $1,150,243 $1,055,184 MUELLER INDUSTRIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) For the Nine Months Ended September 25, September 27, 2004 2003 (Unaudited) Operating activities: Net income from continuing operations $63,762 $33,176 Reconciliation of net income from continuing operations to net cash provided by operating activities: Depreciation and amortization 30,402 29,239 Income tax benefit from exercise of stock options 29,252 - Impairment charge 3,941 - Equity in loss of unconsolidated subsidiaries 2,376 336 (Gain) loss on disposal of properties (5,156) 349 Deferred income taxes (395) (1,295) Minority interest in subsidiaries, net of dividend paid (151) (173) Changes in assets and liabilities, net of business acquired: Receivables (14,742) (32,666) Inventories (33,969) (2,658) Current liabilities 18,671 6,343 Other, net (554) 1,450 Net cash provided by operating activities 93,437 34,101 Investing activities: Capital expenditures (13,073) (24,100) Proceeds from sales of properties 5,493 1,350 Acquisition of business (14,583) - Purchase of Conbraco Industries, Inc. common stock - (10,806) Other, net - 449 Net cash used in investing activities (22,163) (33,107) Financing activities: Dividends paid (10,591) - Acquisition of treasury stock (28,409) - Proceeds from the sale of treasury stock 7,344 244 Repayments of long-term debt (2,776) (2,969) Net cash used in financing activities (34,432) (2,725) Effect of exchange rate changes on cash (15) 3,158 Increase in cash and cash equivalents 36,827 1,427 Cash provided by discontinued operations - 252 Cash and cash equivalents at the beginning of the period 255,088 217,601 Cash and cash equivalents at the end of the period $291,915 $219,280 SOURCE Mueller Industries, Inc. -0- 10/14/2004 /CONTACT: Kent A. McKee of Mueller Industries, Inc., +1-901-753-3208/ (MLI)