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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.
Revenue by Segment
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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