Mueller Industries reports Q1 results; notes plant damage from tornado

Mueller Industries posts growth in multiple categories but faces a challenging economic environment.

Mueller Industries reports Q1 results; notes plant damage from tornado

Mueller Industries, based in Collierville, has experienced significant growth over the past few years.

In FY 2022 the company increased its net sales from $3.76 to $3.98 and increased operating income from $655.84 to $877.14 millions.

Mueller, a manufacturer of aluminum, steel and plastics as well as copper and copper alloys has now reported its results for the first quarter of FY2023. Although it posted growth across multiple categories, there were also headwinds.

The company's earnings per share (EPS), which rose from $2.78 up to $3.07, also increased.

The company's sales have fallen by 3.8% from $1.01 to $971.2 billion. The company's net sales fell 3.8%, from $1.01 billion to $971.2 million, due in part, to lower unit volumes in Mueller’s international businesses and a decline in COMEX prices, which were $4.09 a pound on average in Q1 of 2023 -- a 10% decrease compared with Q1 of 2022.

However, these were not unexpected factors. Mueller's Net Sales also declined slightly in the third quarter and the fourth quarter of FY 2022. These periods also saw a decrease in copper prices. In Q3 of 2022 the average price for COMEX copper was $3.50 a pound -- a 19% decrease from Q3 of 2021. And in Q4 it was $3.66 a pound -- a 16.4% decline year-over-year.

In the press release, Mueller CEO Greg Christopher stated that 'our first quarter results are in line with what we expected for 2022'. We entered the year expecting more difficult economic times to come and adjusted accordingly. We will be able to deliver value to our investors and pursue any new growth opportunities if we have a strong cash flow and solid balance sheet.

This news comes only a few short weeks after a tornado damaged Mueller's Tennessee plant in Covington. The company's financial performance should not be affected by the loss of property or the business interruption that resulted.

Christopher stated in the press release that he was grateful for all employees' safety and lack of injury. As we rebuild, contingency plans have been implemented, including the use other Mueller production sites and third-party arrangements to ensure that our customers receive a reliable supply.