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
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
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