“Net sales and operating income at Mueller Co.’s base business grew in the second quarter. Net sales increased 2.4 percent and operating income for the base business grew 10.7 percent, driven by increased domestic shipments of valves and hydrants. Additionally, Mueller Systems and Echologics continued to gain traction in the marketplace with net sales growth of 22.3 percent year-over-year though, as expected, these businesses negatively impacted Mueller Co.’s current overall results as we are still in the investment phase with both businesses.
“Anvil again delivered solid year-over-year growth with net sales up 12.0 percent and operating income up 44.9 percent, driven primarily by increased strength in its oil & gas and fire protection businesses.
“We believe the steps we have taken to strengthen the company, combined with what appears to be improving end-market dynamics, position us well for future profitable growth.”
Second Quarter Consolidated ResultsNet sales for the 2012 second quarter of $251.5 million increased $16.0 million, or 6.8 percent, from the 2011 second quarter net sales of $235.5 million due to higher shipment volumes and higher prices at both Mueller Co. and Anvil. Adjusted operating income for the 2012 second quarter of $11.5 million improved from $10.9 million for the 2011 second quarter, driven by the higher shipment volumes and higher sales prices mentioned above. Second Quarter Segment Results Mueller Co. Net sales for the 2012 second quarter of $154.5 million increased 3.8 percent from the 2011 second quarter of $148.9 million due to higher shipment volumes and higher prices in the base business as well as at Mueller Systems and Echologics. The increase in shipment volumes in Mueller Co.’s base business, which excludes Mueller Systems and Echologics, was primarily due to higher shipments of domestic valves and hydrants. Adjusted operating income for the 2012 second quarter was $9.0 million compared to adjusted operating income for the 2011 second quarter of $10.5 million. Mueller Co.’s base business adjusted operating income improved 10.7 percent from the 2011 second quarter, and its overall adjusted operating margin would have been 440 basis points higher except for the continued ramping up of operations at Mueller Systems and Echologics.