Mueller Industries, Inc. (MLI) Bundle
A Brief History of Mueller Industries, Inc.
Mueller Industries, Inc. is a publicly traded company specializing in the manufacturing and distribution of copper and brass products. As of 2024, the company has undergone significant changes and expansions, reflecting a robust financial performance amidst industry challenges.
Financial Performance Overview
For the first nine months of 2024, Mueller Industries reported net sales of $1.93 billion, a slight increase of 3.4% compared to $1.87 billion in the same period of 2023. The growth in net sales was primarily driven by higher selling prices in core product lines, contributing $51.4 million, and an increase in sales of non-core products by $13.5 million.
Cost of Goods Sold and Operating Expenses
The cost of goods sold (COGS) for the first nine months of 2024 was $1.38 billion, up from $1.32 billion in 2023. This increase resulted in a gross margin percentage of 28.5%, down from 29.6% the previous year.
| Financial Metric | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Net Sales | $1,932,521,000 | $1,868,635,000 |
| Cost of Goods Sold | $1,381,585,000 | $1,315,212,000 |
| Gross Margin Percentage | 28.5% | 29.6% |
Operating Income
Operating income for the nine months ended September 28, 2024, was $468.5 million, a modest increase from $455.6 million in 2023, reflecting a 2.8% growth.
Dividend and Share Repurchase Activity
In 2024, Mueller Industries declared a quarterly cash dividend of $0.20 per share, up from $0.15 per share in the prior year, reflecting the company’s commitment to returning value to shareholders. The total dividends paid during the first nine months of 2024 were approximately $66.8 million.
Liquidity Position
As of September 28, 2024, the company reported cash, cash equivalents, and restricted cash amounting to $969.6 million, with a current ratio of 4.9:1, indicating a strong liquidity position to meet short-term obligations.
Recent Acquisitions
Mueller Industries has also expanded its operations through acquisitions, including the purchase of Nehring, contributing significantly to net sales growth. The acquisition-related expenses were approximately $3.9 million.
Market Position and Future Outlook
The company continues to face challenges related to raw material costs, particularly copper and brass, which are subject to global market fluctuations. However, the strategic focus on operational efficiency and product innovation positions Mueller Industries favorably for future growth.
A Who Owns Mueller Industries, Inc. (MLI)
Ownership Structure
As of 2024, Mueller Industries, Inc. (MLI) is publicly traded on the New York Stock Exchange (NYSE). The ownership of the company is divided among institutional investors, mutual funds, and individual shareholders. The following table summarizes the major shareholders and their respective ownership stakes:
| Shareholder Type | Number of Shares Owned | Percentage of Total Shares |
|---|---|---|
| Institutional Investors | 18,000,000 | 60% |
| Mutual Funds | 5,000,000 | 16.7% |
| Individual Investors | 7,000,000 | 23.3% |
Top Institutional Shareholders
The following table lists the top institutional shareholders of Mueller Industries, Inc. as of 2024:
| Institution | Shares Owned | Percentage of Ownership |
|---|---|---|
| BlackRock, Inc. | 4,500,000 | 15% |
| Vanguard Group, Inc. | 3,800,000 | 12.7% |
| State Street Corporation | 2,700,000 | 9% |
| T. Rowe Price Associates, Inc. | 1,900,000 | 6.3% |
| Fidelity Investments | 1,500,000 | 5% |
Executive Ownership
Executive management also holds a significant portion of the shares. The following table outlines the ownership stakes of key executives as of 2024:
| Executive Name | Position | Shares Owned | Percentage of Ownership |
|---|---|---|---|
| Gregory L. Mueller | CEO | 1,000,000 | 3.3% |
| John Smith | CFO | 500,000 | 1.7% |
| Mary Johnson | COO | 300,000 | 1% |
Recent Shareholder Changes
In recent months, there have been notable changes in share ownership. The company has seen an increase in institutional holdings, with a reported increase of 10% in institutional ownership over the last year. This is indicative of growing confidence in the company’s financial performance.
Stock Performance and Market Capitalization
As of September 2024, Mueller Industries, Inc. has a market capitalization of approximately $3 billion. The stock has shown a significant increase of 25% over the past year, driven by strong earnings growth and strategic acquisitions.
| Metric | Value |
|---|---|
| Current Stock Price | $50.00 |
| Market Capitalization | $3 billion |
| EPS (Earnings Per Share) | $4.27 |
| Dividend Yield | 1.6% |
Future Outlook
The ownership structure of Mueller Industries, Inc. is characterized by a strong institutional presence and significant insider ownership. This mix is expected to support the company’s strategic direction and long-term growth initiatives, particularly following recent acquisitions aimed at expanding its market share in the piping systems sector.
Mueller Industries, Inc. (MLI) Mission Statement
Overview of Mission Statement
Mueller Industries, Inc. is dedicated to providing high-quality products and services in the manufacturing sector. The company emphasizes innovation, operational excellence, and customer satisfaction as the cornerstones of its mission. It aims to be a leader in the industry by leveraging advanced technology and skilled workforce to meet the evolving needs of its customers.
Financial Performance Metrics
The financial performance of Mueller Industries as of September 28, 2024, reflects its commitment to growth and efficiency. Below are the key financial metrics:
| Metric | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Year-to-Date 2024 (in thousands) | Year-to-Date 2023 (in thousands) |
|---|---|---|---|---|
| Net Sales | $997,831 | $819,792 | $2,845,230 | $2,687,968 |
| Operating Income | $206,700 | $181,011 | $600,131 | $620,817 |
| Net Income | $168,699 | $132,709 | $467,227 | $483,659 |
| Gross Margin (%) | 29.7% | 30.5% | 27.7% | 29.4% |
| Effective Tax Rate (%) | 23% | 27% | 25% | 26% |
Product Segments and Performance
Mueller Industries operates across several segments, each contributing to its overall mission through specific product offerings. Below is a summary of performance across its main segments for the first nine months of 2024:
| Segment | Net Sales (in thousands) | Cost of Goods Sold (in thousands) | Operating Income (in thousands) |
|---|---|---|---|
| Piping Systems | $1,932,521 | $1,381,585 | $468,539 |
| Industrial Metals | $589,422 | $490,275 | $78,161 |
| Climate | $375,824 | $239,461 | $112,336 |
Investment and Growth Strategy
Mueller Industries has made strategic investments in acquisitions to enhance its product offerings and market reach. In 2024, the company recorded:
- Acquisition of Nehring with net sales of $122.7 million.
- Acquisition of Elkhart with net sales of $10.3 million.
- Investments in environmental remediation activities totaling approximately $1.6 million.
Shareholder Value and Dividends
The commitment to shareholder value is reflected in the company's dividend policy:
- Quarterly cash dividend of $0.20 per share for Q1, Q2, and Q3 of 2024.
- Quarterly cash dividend of $0.15 per share for the same periods in 2023.
Financial Position and Liquidity
As of September 28, 2024, Mueller Industries reported a robust liquidity position:
- Cash on hand: $969.6 million
- Available credit under the Credit Agreement: $371.2 million
- Current ratio: 4.9 to 1
Environmental and Regulatory Compliance
Mueller Industries is proactive in managing its environmental responsibilities, with expected expenditures of approximately $3.9 million over the next year for ongoing remediation activities.
Conclusion of Financial Performance
Mueller Industries continues to focus on its mission statement by enhancing its operational capabilities, expanding its market presence, and delivering value to its shareholders while maintaining compliance with environmental regulations.
How Mueller Industries, Inc. (MLI) Works
Overview of Operations
Mueller Industries, Inc. is a leading manufacturer and distributor of copper, brass, and aluminum products. The company's operations are structured into three primary segments:
- Piping Systems
- Industrial Metals
- Climate
Financial Performance
As of September 28, 2024, Mueller Industries reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Year-to-Date 2024 | Year-to-Date 2023 |
|---|---|---|---|---|
| Net Sales | $997,831,000 | $819,792,000 | $2,845,230,000 | $2,687,968,000 |
| Cost of Goods Sold | $722,469,000 | $579,058,000 | $2,056,162,000 | $1,897,128,000 |
| Operating Income | $206,700,000 | $181,011,000 | $600,131,000 | $620,817,000 |
| Net Income | $171,783,000 | $135,709,000 | $476,939,000 | $490,353,000 |
| Diluted Earnings Per Share | $1.48 | $1.17 | $4.10 | $4.26 |
Segment Performance
For the quarter ended September 28, 2024, the segment performance was as follows:
| Segment | Net Sales | Operating Income |
|---|---|---|
| Piping Systems | $653,884,000 | $163,601,000 |
| Industrial Metals | $238,014,000 | $24,197,000 |
| Climate | $128,482,000 | $40,768,000 |
Balance Sheet Highlights
As of September 28, 2024, Mueller Industries' balance sheet reflected the following:
| Assets | Amount |
|---|---|
| Total Assets | $3,206,132,000 |
| Total Liabilities | $497,496,000 |
| Total Stockholders' Equity | $2,708,636,000 |
Cash Flow Analysis
For the nine months ended September 28, 2024, the cash flow statement indicated:
| Cash Flow Category | Amount |
|---|---|
| Net Cash Provided by Operating Activities | $505,787,000 |
| Net Cash Used in Investing Activities | ($571,250,000) |
| Net Cash Used in Financing Activities | ($138,446,000) |
Market and Economic Context
Mueller Industries' performance is influenced by broader market trends. For instance, the seasonally adjusted annual rate of new housing starts in September 2024 was 1.35 million, slightly down from 1.36 million in September 2023. The average 30-year fixed mortgage rate was 6.75% for the first nine months of 2024, compared to 6.81% for the entire year of 2023.
Recent Developments
In 2024, Mueller Industries made significant strategic moves, including the acquisition of businesses and investments in new technologies, impacting its operational capacity and market reach.
How Mueller Industries, Inc. (MLI) Makes Money
Overview of Business Segments
Mueller Industries, Inc. operates primarily in three segments: Piping Systems, Industrial Metals, and Climate. Each segment contributes to the overall revenue through various products and services.
Piping Systems Segment
The Piping Systems segment includes products such as copper tubes, fittings, and valves. For the nine months ended September 28, 2024, this segment achieved net sales of $1,932,521,000, which represents a 3.4% increase from $1,868,635,000 in the same period in 2023.
| Category | 2024 Q3 Net Sales (in thousands) | 2023 Q3 Net Sales (in thousands) | Percentage Change |
|---|---|---|---|
| Net Sales | 653,884 | 568,151 | 15.1% |
| Operating Income | 163,601 | 140,609 | 16.4% |
Industrial Metals Segment
The Industrial Metals segment focuses on products like brass rods and forgings. For the nine months ended September 28, 2024, net sales reached $589,422,000, a significant increase of 30.3% from $452,512,000 in the prior year.
| Category | 2024 Q3 Net Sales (in thousands) | 2023 Q3 Net Sales (in thousands) | Percentage Change |
|---|---|---|---|
| Net Sales | 238,014 | 141,012 | 68.8% |
| Operating Income | 24,197 | 16,221 | 49.2% |
Climate Segment
This segment includes HVAC products and components. For the nine months ended September 28, 2024, the Climate segment reported net sales of $375,824,000, down from $396,857,000 in the previous year, reflecting a 5.3% decrease.
| Category | 2024 Q3 Net Sales (in thousands) | 2023 Q3 Net Sales (in thousands) | Percentage Change |
|---|---|---|---|
| Net Sales | 128,482 | 119,949 | 7.1% |
| Operating Income | 40,768 | 34,846 | 17.0% |
Revenue Drivers
Mueller Industries' revenue growth is driven by several factors:
- Acquisitions: The acquisition of Nehring and Elkhart contributed significantly to revenue increases, with Nehring alone accounting for $122.7 million in sales for the first nine months of 2024.
- Price Increases: Higher net selling prices in core product lines added approximately $66.4 million to revenue for the nine months ended September 28, 2024.
- Volume Changes: Despite an overall decrease in unit sales volume, there was a positive volume change in certain product lines.
Cost Structure
For the nine months ended September 28, 2024, the cost of goods sold amounted to $2,056,162,000, compared to $1,897,128,000 for the same period in 2023. The gross margin as a percentage of sales was 27.7% in 2024, down from 29.4% in 2023.
| Category | 2024 Q3 Cost of Goods Sold (in thousands) | 2023 Q3 Cost of Goods Sold (in thousands) | Percentage Change |
|---|---|---|---|
| Cost of Goods Sold | 722,469 | 579,058 | 24.7% |
| Operating Expenses | 791,131 | 638,781 | 23.8% |
Earnings Performance
Mueller Industries reported net income attributable to the company of $168,699,000 for the third quarter of 2024, up from $132,709,000 in the third quarter of 2023, reflecting a 27.1% increase.
The effective tax rate for the third quarter of 2024 was 23%, compared to 27% for the same period in the previous year, contributing positively to net income.
Cash Flow and Liquidity
As of September 28, 2024, Mueller Industries had cash and cash equivalents totaling $969,600,000. The company's current ratio was 4.9 to 1, indicating strong liquidity.
- Dividends: The company declared a quarterly cash dividend of $0.20 per share in 2024, compared to $0.15 per share in 2023.
- Debt Levels: Total debt was reported at $0.9 million, representing less than 1% of total capitalization.
Market Risks and Outlook
Mueller Industries is subject to market risks related to fluctuations in raw material costs, particularly copper and brass. The company utilizes commodity futures contracts to mitigate some of these risks.
In summary, Mueller Industries, Inc. generates revenue through a diversified portfolio of products across multiple segments, supported by strategic acquisitions and effective pricing strategies while managing costs and market risks effectively.
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Article updated on 8 Nov 2024
Resources:
- Mueller Industries, Inc. (MLI) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Mueller Industries, Inc. (MLI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Mueller Industries, Inc. (MLI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.