“Municipalities recognize the need to upgrade their water infrastructure systems; however, we believe they will remain cautious in the near term as they balance this need against current budget concerns. With this caution, as well as the delayed recovery of the residential construction market, we believe that volumes in our water infrastructure businesses for the second half of the year will be roughly flat on a year-over-year basis. But our overall earnings performance should continue to improve given the benefits of higher pricing and our cost savings initiatives and other operational improvements we have made.”Second Quarter Consolidated Results Net sales for the 2011 second quarter of $311.3 million increased 3.1 percent from net sales for the 2010 second quarter of $301.8 million. Net sales increased primarily due to higher prices of $13.9 million, partially offset by lower shipment volumes of $5.1 million. Adjusted loss from operations for the 2011 second quarter of $4.8 million improved $7.6 million from an adjusted loss from operations for the 2010 second quarter of $12.4 million. Manufacturing and other cost savings of $15.8 million and higher sales prices of $13.9 million were partially offset by higher raw material costs of $11.2 million, higher per-unit overhead costs due to lower production of $5.1 million and higher selling, general and administrative expenses of $4.2 million. Selling, general and administrative expenses for the 2010 second quarter included a gain of $3.1 million from the sale of Anvil’s Canadian distribution business. Second Quarter Segment Results Mueller Co. Net sales for Mueller Co. for the 2011 second quarter of $148.9 million increased 5.5 percent from net sales for the 2010 second quarter of $141.2 million. The increase was due to higher prices of $4.4 million, higher shipment volumes of $2.4 million and favorable Canadian currency exchange rates of $0.9 million.