Mueller Industries Inc (MLI) Reports Q3 2023 Earnings
Operating income of $181.0 million, down from $205.2 million in Q3 2022
Net income of $132.7 million, compared to $154.5 million in the same period last year
Diluted EPS of $1.17, down from $1.37 in Q3 2022
Net sales of $819.8 million, a decrease from $944.8 million in Q3 2022
On October 24, 2023, Mueller Industries Inc (NYSE:MLI) announced its financial results for the third quarter of 2023. The company reported a decrease in operating income, net income, diluted EPS, and net sales compared to the same period in 2022.
Financial Highlights
The company's operating income for the quarter was $181.0 million, down from $205.2 million in Q3 2022. Net income also decreased to $132.7 million from $154.5 million in the same period last year. Diluted EPS was $1.17, down from $1.37 in Q3 2022. Net sales decreased to $819.8 million from $944.8 million in Q3 2022.
The decrease in net sales was primarily due to reduced demand in the wholesale channel as distributors continued to rebalance inventory levels, particularly for products utilized in residential construction. The company also sold a majority interest in its PEX plastic piping business on July 3, 2023, which contributed $11.2 million in net sales in the prior year quarter.
Financial Position
Net cash provided by operations was $247.7 million, and cash plus short-term investments were $1.10 billion at quarter end. The company's current ratio increased to 6.0 to 1. On September 26, 2023, the Companys Board of Directors declared a two-for-one stock split in the form of a 100% stock dividend. The record date for the stock split was October 6, 2023, and the dividend was distributed on stockholders on October 20, 2023.
CEO's Commentary
Our businesses have aptly adjusted to the expected tempering of demand in 2023 following the unrestrained demand levels that occurred in 2022. Nonetheless, business conditions at these levels are historically favorable. In addition, we are executing on a number of strategic investments and capacity rationalizations that we expect will continue to yield favorable cost improvements. - Greg Christopher, Muellers CEO
Company Overview
Mueller Industries Inc (NYSE:MLI) is an industrial corporation whose holdings manufacture vital goods for important markets such as air, water, oil and gas distribution; climate comfort; food preservation; energy transmission; medical; aerospace; and automotive. It includes a network of companies and brands throughout North America, Europe, Asia, and the Middle East.
Explore the complete 8-K earnings release (here) from Mueller Industries Inc for further details.
This article first appeared on GuruFocus.
