Paul Mueller Company Reports Its Earnings for the Year 2008

Springfield, Missouri


SPRINGFIELD, Mo., March 4, 2009 (GLOBE NEWSWIRE) -- Paul Mueller Company (Pink Sheets:MUEL) today reported its earnings for the year 2008:



                PAUL MUELLER COMPANY AND SUBSIDIARIES
                 CONSOLIDATED SUMMARIES OF OPERATIONS
                               Unaudited

                    Three Months Ended           Twelve Months Ended
                       December 31                  December 31
                --------------------------  --------------------------
                    2008          2007          2008          2007
                ------------  ------------  ------------  ------------
 Net Sales      $ 65,287,000  $ 79,444,000  $217,882,000  $241,147,000
 Cost of
  Sales           48,951,000    63,578,000   176,826,000   200,859,000
                ------------  ------------  ------------  ------------
  Gross
   Profit       $ 16,336,000  $ 15,866,000  $ 41,056,000  $ 40,288,000
 Selling,
  General and
  Admin.
  Expenses        13,768,000     6,298,000    34,443,000    25,275,000
                ------------  ------------  ------------  ------------
  Operating
   Income       $  2,568,000  $  9,568,000  $  6,613,000  $ 15,013,000
 Other Income
  (Expense)        (136,000)   (1,103,000)     (154,000)     (419,000)
                ------------  ------------  ------------  ------------
 Income
  before
  Provision
  for Income
  Taxes         $  2,432,000  $  8,465,000  $  6,459,000  $ 14,594,000
 Provision
  for Income
  Taxes            1,034,000     3,276,000     2,349,000     5,508,000
                ------------  ------------  ------------  ------------
 Net Income     $  1,398,000  $  5,189,000  $  4,110,000  $  9,086,000
                ============  ============  ============  ============

 Earnings per
  Common
  Share -
   Basic               $1.17         $4.49         $3.53         $7.88
   Diluted             $1.16         $4.42         $3.47         $7.74


 NOTES:   1)   The fourth quarter of 2008 and a portion of the year
               2008 included the results of Mueller B.V., a wholly
               owned Dutch subsidiary. Mueller B.V.'s results have
               been included since April 18, 2008, when it acquired
               Paltrok Beheer B.V. Additionally, the MEKO companies
               were acquired as of October 1, 2008. Mueller B.V.'s
               sales were $17,325,000 and net income was $626,400, or
               $0.53 per share ($0.52 diluted) for the fourth quarter
               of 2008.  Mueller B.V.'s results for the partial year 
               2008 included sales of $30,871,000 and net income of
               $1,315,000, or $1.12 per share ($1.11 diluted). 

               Mueller B.V.'s net income for the fourth quarter and 
               for the partial year 2008 was reduced by amortization 
               of an intangible asset (the value of the backlog of the
               companies acquired during 2008). For the fourth
               quarter, amortization was $384,700 after tax, or $0.32
               per share (basic and diluted); and for the partial year
               2008, amortization was $1,112,000 after tax, or $0.95
               per share ($0.94 diluted).

               Selling, general and administrative expenses included
               $6,526,000 for the fourth quarter of 2008 and
               $7,443,000 for the partial year of 2008, attributable
               to Mueller B.V.

          2)   Fourth quarter 2007 results were favorably affected by
               an adjustment to the LIFO reserve, which increased net
               income by $2,163,000 after tax, or $1.87 per share
               ($1.84 diluted). The reduction in the inventory level
               during the fourth quarter due to the high level of
               sales contributed to the adjustment. There was no
               material LIFO adjustment for the fourth quarter of 2008.

          3)   For the year ended December 31, 2007, net income was
               adversely affected by an increase to the LIFO reserve,
               which reduced net income by $1,005,000 after tax, or
               $0.87 per share ($0.86 diluted). The high price of
               stainless steel during 2007 contributed to the LIFO
               reserve increase. There was no material LIFO adjustment
               for the year 2008.

           4)  Consolidated Backlog               December 31
                                          ----------------------------
                                              2008            2007
                                          ------------    ------------

                                          $ 56,421,000    $ 69,270,000


            

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