TO BUSINESS EDITOR: Mueller Industries, Inc. Reports Second Quarter Results MEMPHIS, Tenn., July 24 /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 second quarter of 2007. Net income for the second quarter was $36.4 million, or 98 cents per diluted share, constituting the third highest quarter in the Company's history. This compares with $58.8 million, or $1.57 per diluted share, for the extraordinary second quarter of fiscal 2006, which was the Company's best quarter ever. Net sales for the three months ended June 30, 2007 were $772.6 million, compared with net sales of $779.7 million for the second quarter of 2006. Year-to-date, the Company earned $55.3 million, or $1.49 per diluted share, on net sales of $1.38 billion. This compares with net income of $92.1 million, or $2.48 per diluted share, on net sales of $1.33 billion for the first half of 2006. Earnings and sales for the second quarter were affected by the decline in the residential construction sector, which saw housing starts down approximately 25 percent compared with last year. However, the commercial construction market continues to strengthen and has increased by approximately 18 percent over last year. The Company's profit margins in the commercial construction sector have historically been better than in the other markets the Company serves. Financial and Operating Highlights Regarding the second quarter of 2007, Mr. Karp said: -- "Mueller ended the quarter with almost $250 million in cash; our current ratio remains excellent at 2.48 to 1 and our working capital is $557.3 million. -- "The COMEX average price of copper was $3.46 per pound in the second quarter of 2007, which compares with $3.37 per pound in the second quarter of 2006. -- "Our Plumbing & Refrigeration segment posted operating earnings of $51.7 million on net sales of $455.5 million which compares with operating earnings of $78.3 million on net sales of $551.2 million in the second quarter of 2006. Our European businesses were profitable on the strength of our trading activities. -- "Our OEM segment posted operating earnings of $18.0 million during the second quarter of 2007 on net sales of $322.2 million, which compared with operating earnings of $21.5 million on net sales of $242.1 million for the same period in 2006. -- "Selling, general, and administrative expense was $39.0 million in the second quarter of 2007 which is comparable to the same period of 2006. -- "Capital expenditures during the first half of 2007 totaled $15.6 million. We expect to invest between $30 and $40 million for capital expenditures during 2007." Business Outlook for 2007 Regarding the outlook for 2007, Mr. Karp said, "The residential construction sector remains weak, although the rate of decline has subsided. We believe the housing market is near the bottom, and will begin to improve in the first half of 2008. Positive factors include low mortgage rates, high employment, an expanding economy, and population growth. Also, we expect the commercial construction market to remain strong." 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, Great Britain, and China. Mueller's business is importantly linked to (1) the construction of new homes; (2) the improvement and reconditioning of existing homes and structures; and (3) the commercial construction market, which includes office buildings, factories, hotels, hospitals, etc. 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. The words "outlook," "estimate," "project," "intend," "expect," "believe," "target," and similar expressions are intended to identify forward-looking statements. The reader should not place undue reliance on forward-looking statements, which speak only as of the date of this report. The Company has no obligation to publicly update or revise any forward-looking statements to reflect events after the date of this report. MUELLER INDUSTRIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data)