“Looking ahead, we feel that we are well positioned to benefit from a recovery in residential construction and municipal water spending, which we believe are both healthier today than they were a year ago. We also believe operating margins will continue to be positively impacted in the future by the efficiencies generated from our LEAN manufacturing achievements and as we experience higher levels of capacity utilization. Additionally, we believe we will benefit from the investments we have made in our metering systems and leak detection products and services as these markets continue to grow.”
Fourth Quarter Consolidated Results
Net sales for the 2012 fourth quarter increased $24.8 million, or 9.7 percent, to $281.1 million, from the 2011 fourth quarter net sales of $256.3 million due primarily to higher shipment volumes.
Adjusted operating income for the 2012 fourth quarter increased 69.4 percent to $22.7 million from $13.4 million for the 2011 fourth quarter. This increase was driven primarily by the higher sales volumes, lower per unit overhead costs due to increased production and higher sales prices, partially offset by higher selling, general and administrative expenses.Fourth Quarter Segment Results Mueller Co. Net sales for the 2012 fourth quarter increased 16.3 percent to $187.2 million from $161.0 million in the 2011 fourth quarter. This increase was due to higher shipment volumes across most of Mueller Co.’s products, especially valves, hydrants, brass products and metering systems. Adjusted operating income for the 2012 fourth quarter improved to $21.5 million from adjusted operating income of $13.1 million in the 2011 fourth quarter. Adjusted operating income margin for the 2012 fourth quarter improved to 11.5 percent from adjusted operating income margin for the 2011 fourth quarter of 8.1 percent. Anvil Net sales for the 2012 fourth quarter were $93.9 million compared to net sales of $95.3 million for the 2011 fourth quarter. The decline resulted primarily from lower shipment volumes.