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Dec 31, 2022
Mueller Industries Q4 2022 Earnings Report
Reported best fourth quarter of operating and net income in the Company’s history.
Key Takeaways
Mueller Industries reported a decrease in net sales but an increase in operating income, net income, and diluted EPS for the fourth quarter of 2022 compared to the fourth quarter of 2021. The company's performance was driven by strategic actions to improve gross margins and expand into higher value-added content, offsetting the impact of lower copper prices and reduced unit volumes.
Operating income increased by 10.6% to $190.4 million.
Net sales decreased by 8.2% to $877.6 million.
Net income increased by 10.6% to $138.9 million.
Diluted EPS increased by 11.3% to $2.46.
Forward Guidance
Mueller Industries anticipates some decline in U.S. residential building markets compared to 2022, but believes household formations will remain underserved by the housing supply, resulting in healthy demand levels. The company maintains continued backlogs in other critical markets including commercial construction, refrigeration, HVAC and transportation. Internationally, market conditions may be bottoming out, positioning businesses for a rebound.
Positive Outlook
- Household formations will remain underserved by the housing supply.
- Demand levels should remain at healthy levels relative to industry capacity.
- Continued backlogs in critical markets including commercial construction.
- Continued backlogs in critical markets including refrigeration.
- Continued backlogs in critical markets including HVAC and transportation.
Challenges Ahead
- Anticipate some decline in U.S. residential building markets as compared with 2022.
- Economic activity as a whole began to temper during the second half of 2022 amidst rising interest rates.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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