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Mar 28, 2020
Mueller Industries Q1 2020 Earnings Report
Reported earnings results for the first quarter of 2020.
Key Takeaways
Mueller Industries reported a net income of $32.4 million, or 57 cents per diluted share, on net sales of $602.9 million for the first quarter of 2020. This compares to a net income of $15.7 million, or 28 cents per diluted share, on net sales of $611.8 million for the prior year period. Operating income for the first quarter was $59.3 million versus $49.2 million for the prior year period.
Operating income for the first quarter was $59.3 million versus $49.2 million for the prior year period.
Net income for the first quarter was $32.4 million, or 57 cents per diluted share, on $602.9 million in net sales.
The company recorded a $6.3 million loss on its investment in Tecumseh Products Company in the quarter.
Cash on hand was $154.3 million at quarter-end.
Mueller Industries
Mueller Industries
Mueller Industries Revenue by Segment
Revenue by Segment
Piping Systems Segment Revenue
CapyFin.comIndustrial Metals Segment Revenue
CapyFin.comClimate Segment Revenue
CapyFin.com Forward Guidance
The company anticipates that April and May could be off 30 percent - 40 percent, with any reversal depending upon the timing and progress of the reopening of the economy. The company does not intend to suspend or reduce its second quarter dividend.
Positive Outlook
- The company has an established record of prudent financial management.
- The company began to prepare for a potential correction in the economy during the fourth quarter of 2019.
- The company has further bolstered its position by implementing even more cash conservation measures.
- The company's committed credit facility provides for additional liquidity if needed to support its operations and seize potential opportunities.
- The company is well within its covenants.
Challenges Ahead
- The COVID-19 pandemic has had widespread effects around the world.
- The construction industry has seen reduced activity due largely to government orders and public health risk mitigation measures.
- Softening in demand related to the virus hit the company during the latter half of March.
- April and May could be off 30 percent - 40 percent.
- Any reversal depends upon the timing and progress of the reopening of the economy.
Revenue & Expenses
Visualization of income flow from segment revenue to net income