Mueller Industries, Inc. Reports First Quarter 2011 Results

By Mueller Industries Inc., PRNE
Monday, April 25, 2011

MEMPHIS, Tennessee, April 26, 2011 - Harvey L. Karp, Chairman of Mueller Industries, Inc. (NYSE: MLI),
announced today that Mueller's net income was $40.6 million, or $1.07 per
diluted share, for the first quarter of 2011. This compares with net income
of $34.0 million, or 90 cents per diluted share, for the same period of 2010.

Both the first quarters of 2011 and 2010 had unusual items which were
included in net income. In 2011, income of 18 cents per diluted share was
included, resulting from the favorable settlement of a legal action. And, in
the first quarter of 2010, income of 62 cents per diluted share was included
in net income, resulting from an insurance claim. Excluding these unusual
items, Mueller's net income for the first quarter of 2011 was $33.8 million,
or 89 cents per diluted share, compared with $10.6 million, or 28 cents per
diluted share, for the first quarter of 2010. On this basis, net income more
than tripled.

Net sales in the first quarter of 2011 amounted to $687.7 million, a 42
percent increase over net sales in the same quarter a year ago. The first
quarter of 2011 was a 14-week period while the first quarter of 2010 was a
13-week period.

Financial and Operating Highlights

    Regarding the first quarter of 2011, Mr. Karp said:

    - "The increase in net sales was primarily due to core product lines --
      copper tube, fittings, and brass rod -- of which approximately $82
      million was due to increased unit volume and approximately $92 million
      was due to higher selling prices that reflect increased raw material
      costs. The Comex average price of copper was $4.39 per pound in the
      first quarter of 2011, which compares with $3.28 in the first quarter
      of 2010.

    - "Our Plumbing & Refrigeration segment posted operating earnings of
      $29.7 million. Net sales for the first quarter of 2011 totaled $380.6
      million. In the same period a year ago, comparable segment earnings
      were $18.0 million (plus a $22.5 million gain on the settlement of an
      insurance claim as discussed above) on net sales of $256.7 million.
      Volumes and margins were better across most product lines contributing
      to the improved earnings.

    - "Our OEM segment posted operating earnings of $29.6 million during the
      first quarter of 2011 on net sales of $319.3 million, which compares
      with operating income of $16.1 million on net sales of $232.2 million
      for the same period in 2010. The increase in earnings was primarily due
      to higher volume and lower costs.

    - "Stockholders' equity was $832.3 million which equates to a book value
      per share of $21.99, of which $10.93 per share is cash.

    - "Our current ratio remained solid at 3.7 to 1. We ended the quarter
      with $413.9 million in cash and $757.0 million in working capital.

    - "As of quarter end, our financial leverage was modest with a debt to
      total capitalization ratio of 18.9 percent."

Business Outlook for 2011

Regarding the outlook for 2011, Mr. Karp said, "The construction sector
remains anemic. On the residential side, foreclosures and the threats thereof
weigh on weak demand caused by poor jobs growth, even though mortgage rates
are low and favorable affordability conditions exist. As for commercial
construction, private nonresidential activity suffers from high vacancy
rates.

"Despite these difficult conditions, Mueller achieved a very good first
quarter and we remain positive about the outlook for the year."

Mueller Industries, Inc. is a leading manufacturer of copper tube and
fittings; brass and copper alloy rod, bar and shapes; aluminum and brass
forgings; aluminum and copper impact extrusions; plastic fittings and valves;
refrigeration valves and fittings; and fabricated tubular products. Mueller's
operations are located throughout the United States and in Canada, Mexico,
Great Britain, and China. Mueller's business is importantly linked to: (1)
the construction of new homes; (2) the improvement and reconditioning of
existing homes and structures; and (3) the commercial construction market
which includes office buildings, factories, hotels, hospitals, etc.

                         *********************

Statements in this release that are not strictly historical may be
"forward-looking" statements, which involve risks and uncertainties. These
include economic and currency conditions, continued availability of raw
materials and energy, market demand, pricing, competitive and technological
factors, and the availability of financing, among others, as set forth in the
Company's SEC filings. The words "outlook," "estimate," "project," "intend,"
"expect," "believe," "target," and similar expressions are intended to
identify forward-looking statements. The reader should not place undue
reliance on forward-looking statements, which speak only as of the date of
this report. The Company has no obligation to publicly update or revise any
forward-looking statements to reflect events after the date of this report.

                        MUELLER INDUSTRIES, INC.
               CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                  (In thousands, except per share data)

                                                    For the Quarter
                                                         Ended
                                                    ----------------
                                                  April 2,      March 27,
                                                   2011           2010
                                                   ----           ----
                                                       (Unaudited)

    Net sales                                  $687,681       $485,268

    Cost of goods sold                          589,874        413,048
    Depreciation and amortization                 9,699         10,348
    Selling, general, and administrative
     expense                                     35,369         37,323
    Litigation settlement                       (10,500)             -
    Insurance gain                                    -        (22,506)
                                                    ---        -------

    Operating income                             63,239         47,055

    Interest expense                             (3,348)        (2,532)
    Other income, net                             1,059            140
                                                  -----            ---

    Income before income taxes                   60,950         44,663

    Income tax expense                          (20,408)        (9,864)
                                                -------         ------

    Consolidated net income                      40,542         34,799

    Net loss (income) attributable to
     noncontrolling interest                         45           (841)
                                                    ---           ----

    Net income attributable to Mueller
     Industries, Inc.                           $40,587        $33,958
                                                =======        =======

    Weighted average shares
      for basic earnings per share               37,723         37,588
    Effect of dilutive stock-based
     awards                                         263             94
                                                    ---            ---

    Adjusted weighted average shares
      for diluted earnings per share             37,986         37,682
                                                 ------         ------

    Basic earnings per share                      $1.08          $0.90
                                                  =====          =====

    Diluted earnings per share                    $1.07          $0.90
                                                  =====          =====

    Dividends per share                           $0.10          $0.10
                                                  =====          =====

    Summary Segment Data:
    ---------------------
    Net sales:
      Plumbing & Refrigeration Segment         $380,589       $256,662
      OEM Segment                               319,336        232,204
      Elimination of intersegment sales         (12,244)        (3,598)
                                                -------         ------

    Net sales                                  $687,681       $485,268
                                               ========       ========

    Operating income:
      Plumbing & Refrigeration Segment          $29,683        $40,459
      OEM Segment                                29,646         16,131
      Unallocated expenses                        3,910         (9,535)
                                                  -----         ------

    Operating income                            $63,239        $47,055
                                                =======        =======
                        MUELLER INDUSTRIES, INC.
                  CONDENSED CONSOLIDATED BALANCE SHEETS
                             (In thousands)

                                               April 2,      December 25,
                                                2011             2010
                                                ----             ----
                                                     (Unaudited)
    ASSETS
    Cash and cash equivalents                 $413,922         $394,139
    Accounts receivable, net                   353,321          269,258
    Inventories                                231,270          209,892
    Other current assets                        36,583           39,025
                                                ------           ------
        Total current assets                 1,035,096          912,314

    Property, plant, and equipment,
     net                                       227,890          229,498
    Other assets                               119,026          117,184
                                               -------          -------

                                            $1,382,012       $1,258,996
                                            ==========       ==========

    LIABILITIES AND STOCKHOLDERS'
     EQUITY
    Current portion of long-term debt          $43,117          $32,020
    Accounts payable                           123,031           67,849
    Other current liabilities                  111,982           95,258
                                               -------           ------
        Total current liabilities              278,130          195,127

    Long-term debt                             157,226          158,226
    Pension and postretirement
     liabilities                                40,995           40,939
    Environmental reserves                      23,263           23,902
    Deferred income taxes                       21,915           24,081
    Other noncurrent liabilities                   808              824
                                                   ---              ---

        Total liabilities                      522,337          443,099

    Total Mueller Industries, Inc.
     stockholders' equity                      832,299          788,736
    Noncontrolling interest                     27,376           27,161
                                                ------           ------

        Total equity                           859,675          815,897
                                               -------          -------

                                            $1,382,012       $1,258,996
                                            ==========       ==========
                          MUELLER INDUSTRIES, INC.
              CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                              (In thousands)

                                                        For the Quarter
                                                             Ended
                                                       ----------------
                                                    April 2,       March 27,
                                                     2011            2010
                                                     ----            ----
                                                         (Unaudited)
    Operating activities:
    Consolidated net income                        $40,542        $34,799
    Reconciliation of net income to net
     cash provided by
      operating activities:
        Depreciation and amortization                9,769         10,389
        Stock-based compensation expense               764            704
        Gain on disposal of properties                (268)            (6)
        Insurance gain                                   -        (22,506)
        Insurance proceeds -noncapital
         related                                         -          5,561
        Deferred income taxes                       (1,924)        (3,623)
        Income tax benefit from exercise of
         stock options                                   -            (11)
        Changes in assets and liabilities:
          Receivables                              (80,974)       (30,689)
          Inventories                              (13,471)         3,748
          Other assets                               2,640          6,938
          Current liabilities                       70,387         30,899
          Other liabilities                         (1,084)           155
          Other, net                                  (548)           280
                                                      ----            ---

    Net cash provided by operating
     activities                                     25,833         36,638
                                                    ------         ------

    Investing activities:
    Capital expenditures                            (5,050)        (4,479)
    Business acquired                               (6,882)             -
    Insurance proceeds for property damage               -         17,703
    Proceeds from sales of properties                  132              8
    Net withdrawals from restricted cash
     balances                                          261          2,524
                                                       ---          -----

    Net cash (used in) provided by
     investing activities                          (11,539)        15,756
                                                   -------         ------

    Financing activities:
    Dividends paid                                  (3,772)        (3,759)
    Debt issuance costs                             (1,942)             -
    Issuance of shares under incentive
     stock option plans
      from treasury                                      7            720
    Income tax benefit from exercise of
     stock options                                       -             11
    Issuance of debt by joint venture, net           9,689          3,436
                                                     -----          -----

    Net cash provided by financing
     activities                                      3,982            408
                                                     -----            ---

    Effect of exchange rate changes on
     cash                                            1,507         (1,623)
                                                     -----         ------

    Increase in cash and cash equivalents           19,783         51,179

    Cash and cash equivalents at the
     beginning of the period                       394,139        346,001
                                                   -------        -------

    Cash and cash equivalents at the end
     of the period                                $413,922       $397,180
                                                  ========       ========
                             MUELLER INDUSTRIES, INC.
                      RECONCILIATION OF NET INCOME AS REPORTED
           TO NET INCOME BEFORE LITIGATION SETTLEMENT AND INSURANCE GAIN
                       (In thousands, except per share data)

    Earnings without the litigation settlement in 2011 and without the
    insurance gain in 2010 is a measurement not derived in accordance
    with generally accepted accounting principles (GAAP).  Excluding the
    litigation settlement and insurance gain is useful as it measures
    the operating results that are the outcome of daily operating
    decisions made in the normal course of business.  The litigation
    settlement resulted from the collection of proceeds from the lawsuit
    against Peter Berkman, Jeffrey Berkman, and Homewerks Worldwide LLC.
    The insurance gain resulted from the final settlement for losses
    claimed as a result of a fire at our U.K. subsidiary in November
    2008, the results of which are not impacted by daily operations and
    are not expected to recur in future periods. Reconciliations of
    earnings without the litigation settlement and insurance gain to net
    income as reported are as follows:

                                   For the Quarter Ended April 2, 2011
                                   -----------------------------------

                                                                    Pro
                                                Impact             forma
                                                  of              Without
                                   As          Litigation        Litigation
                                Reported       Settlement        Settlement
                                --------       ----------        ----------
                                               (Unaudited)

    Operating income             $63,239         $(10,500)         $52,739

    Interest expense              (3,348)               -           (3,348)
    Other income, net              1,059                -            1,059
                                   -----              ---            -----

    Income before income taxes    60,950          (10,500)          50,450
    Income tax expense           (20,408)           3,675          (16,733)
                                 -------            -----          -------

    Consolidated net income       40,542           (6,825)          33,717

    Net loss attributable to
     noncontrolling interest          45                -               45
                                     ---              ---              ---

    Net income attributable to
     Mueller Industries, Inc.    $40,587          $(6,825)         $33,762
                                 =======          =======          =======

    Diluted earnings per share     $1.07           $(0.18)           $0.89
                                   =====           ======            =====

                                  For the Quarter Ended March 27, 2010
                                  ------------------------------------

                                                                     Pro
                                                  Impact            forma
                                                    of             Without
                                   As            Insurance        Insurance
                                Reported           Gain              Gain
                                --------           ----              ----
                                                (Unaudited)

    Operating income             $47,055         $(22,506)         $24,549

    Interest expense              (2,532)               -           (2,532)
    Other income, net                140                -              140
                                     ---              ---              ---

    Income before income taxes    44,663          (22,506)          22,157
    Income tax expense (Note A)   (9,864)            (819)         (10,683)
                                  ------             ----          -------

    Consolidated net income       34,799          (23,325)          11,474

    Net income attributable to
     noncontrolling interest        (841)               -             (841)
                                    ----              ---             ----

    Net income attributable to
     Mueller Industries, Inc.    $33,958         $(23,325)         $10,633
                                 =======         ========          =======

    Diluted earnings per share     $0.90           $(0.62)           $0.28
                                   =====           ======            =====

    (A) Realization of this insurance gain resulted in a tax benefit
        primarily from the utilization of U.K. net operating losses that
        were previously reserved.

Kent A. McKee, +1-901-753-3208

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