“Once again, Anvil grew year-over-year in the first quarter with adjusted income from operations increasing 20 percent on a net sales increase of 4.7 percent. Adjusted income from operations benefited from higher sales pricing and productivity improvements.
“We are encouraged with the positive movement we saw in the first quarter in some macro variables, particularly in the housing market. While these developments are not expected to positively impact our results this year, it is the first time in several years that we have seen positive movement.”
First Quarter Consolidated Results
Net sales for the 2012 first quarter of $311.5 million increased $23.9 million from the 2011 first quarter net sales of $287.6 million. Net sales increased primarily due to higher prices of $16.2 million and higher shipment volumes of $7.9 million.Adjusted loss from operations for the 2012 first quarter of $1.6 million improved from an adjusted loss from operations for the 2011 first quarter of $2.4 million. The adjusted loss from operations improved due to higher sales prices of $16.2 million and net manufacturing and other cost savings of $6.7 million. However, the adjusted loss from operations was adversely affected primarily due to higher raw material costs of $14.2 million, higher per-unit overhead costs due to lower production of $3.8 million, and higher selling, general and administrative expenses of $1.4 million. First Quarter Segment Results Mueller Co. Net sales for Mueller Co. for the 2012 first quarter were $128.1 million compared to net sales for the 2011 first quarter of $129.8 million. Shipment volumes in Mueller Co.’s base business were down $6.7 million year-over-year primarily due to a fall-off in Canadian sales which were down $4.5 million. Mueller Co.’s base business excludes Mueller Systems and Echologics, our newer technology businesses. Shipment volumes for domestic valves and hydrants were up slightly year-over-year. Additionally, net sales benefitted from higher prices of $2.4 million.