Exhibit 99.1 MUELLER INDUSTRIES, INC. REPORTS RECORD FIRST QUARTER 2006 EARNINGS MEMPHIS, Tenn., April 25 /PRNewswire-FirstCall/ -- Harvey L. Karp, Chairman of Mueller Industries, Inc. (NYSE: MLI), announced today that Mueller's net income in the first quarter of 2006 was $33.4 million, or 90 cents per diluted share, which compares with $15.2 million, or 41 cents per diluted share, for the same period of 2005. First quarter net sales for 2006 were $551.0 million compared with $401.7 million in 2005. This increase in net sales is primarily due to the increased cost of copper, the Company's principal raw material, which is generally passed through to customers by changes in selling prices. Approximately $28.8 million of the increase in net sales was attributable to businesses acquired late in 2005. Mr. Karp said, "Margins in our core product lines remained on a good track, which continued the positive trend reflected in the fourth quarter of last year. We also benefited from our operations in Europe and Asia, which performed well." Financial and Operating Highlights Regarding the first quarter of 2006, Mr. Karp said: - "Gross profit was a record at almost $94 million due to better margins and conversion costs in our core product lines, as well as contributions from acquired businesses. - "The COMEX average price of copper was $2.25 per pound in the first quarter of 2006, which compares with $1.47 in the first quarter of 2005. The price of copper continued to rise subsequent to the end of the quarter, trading above $3.00 per pound. This will require additional investments in working capital that should be readily funded with cash on-hand. - "Cash used in operating activities was $49.8 million in the first quarter of 2006 primarily due to additional funding of accounts receivable and inventories caused by continued rising raw material costs. - "Our Plumbing & Refrigeration segment posted operating earnings of $44.2 million on net sales of $386.9 million which compares with prior year earnings of $24.6 million on net sales of $293.9 million. Results improved on better margins and lower conversion costs in our core product lines. Net sales for the Trading Group were somewhat sluggish and, consequently, operating income was off slightly. European results continued to be profitable as our trading businesses there continue to perform well as volume and margins are meeting our expectations. - "Our OEM segment posted operating earnings of $11.0 million during the first quarter of 2006 on net sales of $168.0 million, which compares with operating earnings of $6.5 million on net sales of $111.3 million for the same period in 2005. All product lines reported improved results. Also, our Chinese joint venture reported total operating income of $0.8 million. - "The $12.9 million increase in current portion of long-term debt relates primarily to a working capital facility obligation of our Chinese joint venture. - "Capital expenditures during the first quarter of 2006 totaled $12.0 million of which $5.2 million relates to our Chinese joint venture. We expect to invest between $25 and $30 million for capital expenditures during 2006; additionally, our Chinese joint venture expects to invest approximately $15 million to fund its capital expenditures. - "Selling, general and administrative expense increased to $35.0 million in the first quarter of 2006 due primarily to acquired businesses and compensation expense of $0.6 million associated with stock options. - "The effective tax rate of 27 percent is less than an expected rate of 35 percent primarily due to the recognition of foreign NOLs in the United Kingdom." Business Outlook for 2006 Regarding the outlook for 2006, Mr. Karp said, "The residential construction sector will likely slow in 2006; however, the number of housing starts will remain at the high end of historical levels. On the other hand, commercial construction activity has picked up and it appears that it will continue to grow in 2006. If this scenario develops, we believe Mueller is well-positioned, as our commercial business significantly contributes to our results." 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) For the Quarter Ended ---------------------------- April 1, April 2, 2006 2005 ------------ ------------ (Unaudited) Net sales $ 551,039 $ 401,663 Cost of goods sold 457,069 334,024 Gross profit 93,970 67,639 Depreciation and amortization 10,195 10,078 Selling, general, and administrative expense 34,959 30,355 Operating income 48,816 27,206 Interest expense (4,862) (5,184) Other income, net 2,013 794 Income before income taxes 45,967 22,816 Income tax expense (12,602) (7,608) Net income $ 33,365 $ 15,208 Weighted average shares for basic earnings per share 36,691 36,505 Effect of dilutive stock options 390 646 Adjusted weighted average shares for diluted earnings per share 37,081 37,151 Basic earnings per share $ 0.91 $ 0.42 Diluted earnings per share $ 0.90 $ 0.41 Dividends per share $ 0.10 $ 0.10 Summary Segment Data: Net sales: Plumbing & Refrigeration Segment $ 386,941 $ 293,897 OEM Segment 167,972 111,325 Elimination of intersegment sales (3,874) (3,559) Net sales $ 551,039 $ 401,663 Operating income: Plumbing & Refrigeration Segment $ 44,193 $ 24,627 OEM Segment 10,953 6,534 Unallocated expenses (6,330) (3,955) Operating income $ 48,816 $ 27,206 MUELLER INDUSTRIES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) April 1, December 31, 2006 2005 ------------ ------------ (Unaudited) ASSETS Cash and cash equivalents $ 83,222 $ 129,685 Accounts receivable, net 302,944 248,395 Inventories 211,708 196,987 Other current assets 40,835 36,919 Total current assets 638,709 611,986 Property, plant, and equipment, net 313,974 307,046 Other assets 190,619 185,606 $ 1,143,302 $ 1,104,638 LIABILITIES AND STOCKHOLDERS' EQUITY Current portion of long-term debt $ 16,978 $ 4,120 Accounts payable 114,510 124,216 Other current liabilities 117,299 123,056 Total current liabilities 248,787 251,392 Long-term debt 310,287 312,070 Pension and postretirement liabilities 35,026 35,236 Environmental reserves 9,063 9,073 Deferred income taxes 59,916 63,944 Other noncurrent liabilities 3,011 3,078 Total liabilities 666,090 674,793 Minority interest in subsidiaries 19,564 6,937 Stockholders' equity 457,648 422,908 $ 1,143,302 $ 1,104,638 MUELLER INDUSTRIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) For the Quarter Ended ---------------------------- April 1, April 2, 2006 2005 ------------ ------------ (Unaudited) Operating activities: Net income $ 33,365 $ 15,208 Reconciliation of net income to net cash (used in) provided by operating activities: Depreciation and amortization 10,240 10,118 Equity in earnings of unconsolidated subsidiary (964) (266) (Gain) loss on disposals of properties (121) 94 Deferred income taxes (3,891) (828) Share-based compensation expense 607 - Income tax benefit from exercise of stock options - 529 Minority interest in subsidiaries 393 - Changes in assets and liabilities: Receivables (55,022) (19,189) Inventories (14,813) (6,393) Other assets (4,676) (3,130) Current liabilities (14,807) 33,973 Other liabilities (175) 282 Other, net 104 (211) Net cash (used in) provided by operating activities (49,760) 30,187 Investing activities: Capital expenditures (12,015) (4,814) Business acquired, net of cash received 3,632 - Proceeds from sales of properties 253 25 Net cash used in investing activities (8,130) (4,789) Financing activities: Dividends paid (3,684) (3,659) Acquisition of treasury stock (388) (168) Proceeds from the sale of treasury stock 4,200 3,778 Issuance of debt by joint venture 11,164 - Repayments of long-term debt (162) (2,972) Income tax benefit from exercise of stock options 228 - Net cash provided by (used in) financing activities 11,358 (3,021) Effect of exchange rate changes on cash 69 (106) (Decrease) increase in cash and cash equivalents (46,463) 22,271 Cash and cash equivalents at the beginning of the period 129,685 47,449 Cash and cash equivalents at the end of the period $ 83,222 $ 69,720 SOURCE Mueller Industries, Inc. -0- 04/25/2006 /CONTACT: Kent A. McKee of Mueller Industries, Inc., +1-901-753-3208/