Copper and aluminum manufacturer Mueller Industries Inc. saw earnings soar in the second quarter thanks to a $65.6-million insurance settlement for a 2011 fire at its Wynne, Ark., facility.
The Memphis, Tenn.-based company posted net income of $91.15 million for the three months ended June 29 vs. $17.92 million in the same period last year. Without the insurance settlement, Muellers net income would have been $25.5 million.
The companys sales slipped 2 percent to $582.28 million from nearly $594.1 million a year ago, which Mueller attributed to lower copper costs that impacted selling prices as well as a bumpy market for residential construction and a flat nonresidential construction market.
The residential construction market continues to gain momentum, although its progress on a month-to-month basis remains bumpy. Housing starts totaled 780,000 units in 2012 and are projected to increase by 20 percent in 2013 and another 20 percent in 2014. Despite these gains, many housing market metrics have a long way to go before reaching their pre-recession peaks, Mueller chief executive officer Greg Christopher said in a statement.
The nonresidential construction market remains relatively flat. This is no surprise as it historically has lagged a recovering economy by about a year. The nonresidential market is important to Mueller and we expect to fully participate in its recovery.
Mueller manufactures a number of products for the construction sector, including copper tube and fittings, brass and copper alloy rod, bar and shapes, aluminum and brass forgings and aluminum and copper impact extrusions.