Mueller’s sales expand sharply, with higher copper prices driving part of the gain

Mueller Industries ($MLI) reported quarterly revenue of $1.42 billion, compared with $1.08 billion a year earlier. Net income increased to $221.2 million from $208.1 million and operating profit reached $281.6 million, versus $276.1 million. Split-adjusted earnings per share were $1.00, up from $0.94. The average copper price rose 34.2% to $6.48 per pound, materially affecting reported sales growth.

Operating cash flow was $337 million, and cash plus short-term investments totaled $1.48 billion. The quarter also included $9.4 million of acquisition-related purchase-accounting charges. Management described strength in data-centre and commercial activity alongside weakness in residential demand. The much faster increase in sales than in operating profit should therefore not be interpreted simply as a comparable jump in physical volumes: metal-price changes, business mix and acquisition accounting all matter to the comparison.

Sources:

• Mueller Industries — issuer financial results