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Jun 27, 2020

Mueller Industries Q2 2020 Earnings Report

Mueller Industries reported second-quarter results with stable operating income and earnings per share despite a decrease in net sales.

Key Takeaways

Mueller Industries reported second-quarter operating income of $52.3 million, slightly up from $51.5 million in the prior year. Net income was $28.0 million, or 50 cents per diluted share, matching the 2019 figure. However, net sales decreased to $500.2 million from $666.4 million in the same quarter last year, impacted by lower copper prices and reduced volumes due to COVID-19 shutdowns.

Operating income increased slightly year-over-year to $52.3 million.

Net income remained consistent with the prior year at $28.0 million, or $0.50 per diluted share.

Net sales decreased to $500.2 million due to lower copper prices and reduced volumes from COVID-19 shutdowns.

Cash from operations was $114.7 million, and $145.0 million was repaid on the revolving credit facility.

Total Revenue
$500M
Previous year: $666M
-24.9%
EPS
$0.25
Previous year: $0.29
-13.8%
Gross Profit
$97M
Previous year: $102M
-5.3%
Cash and Equivalents
$124M
Previous year: $91.4M
+35.2%
Total Assets
$1.32B
Previous year: $1.42B
-6.6%

Mueller Industries

Mueller Industries

Mueller Industries Revenue by Segment

Forward Guidance

Mueller Industries anticipates business will strengthen as global economies reopen and expects to remain profitable due to its low-cost platform, even at reduced demand levels.

Positive Outlook

  • Businesses are expected to strengthen as global economies reopen.
  • The company's low-cost platform positions it to remain solidly profitable.
  • Proactive response to the COVID-19 pandemic.
  • Timely cost controls were critical to continued profitability.

Revenue & Expenses

Visualization of income flow from segment revenue to net income