Mueller Industries, Inc. (NYSE: MLI) has reported its second-quarter 2024 earnings, revealing a notable increase in net sales compared to the same period in 2023. The company's net sales for the second quarter of 2024 were $997.7 million, representing a significant rise from the $897.0 million reported in the second quarter of 2023.
Despite the increase in net sales, the operating income for the second quarter of 2024 was $210.0 million, slightly lower than the $210.7 million recorded in the same quarter of the previous year. Similarly, earnings before taxes decreased to $222.9 million in the second quarter of 2024 from $241.0 million in the second quarter of 2023.
Net income also experienced a decline, amounting to $160.2 million in the second quarter of 2024, compared to $177.7 million in the same period in 2023. Additionally, the diluted earnings per share (EPS) for the second quarter of 2024 were $1.41, down from $1.56 in the second quarter of 2023.
The rise in net sales was attributed to higher unit shipments in most of Mueller Industries' businesses, price increases linked to higher copper prices, and the inclusion of one month of reported sales for the recently acquired Nehring business. Furthermore, the company reported an insurance settlement gain of $19.5 million in 2023 related to a fire, and when adjusted for this gain, the quarterly operating income performance improved by 9.8% over the prior year period.
Mueller Industries' cash balance was $825.7 million at the end of the quarter, with net cash generated from operations amounting to $100.8 million. The company deployed $566.6 million for acquisitions and $15.1 million in stock repurchases during the quarter. Moreover, the current ratio remains solid at 4.7 to 1.
Greg Christopher, the CEO of Mueller Industries, expressed optimism about the company's performance, stating that their businesses continue to perform well despite persistent heightened inflation and restrained construction activity. He also highlighted the positive long-term outlook for the business and the expected greater benefits from internal investments as market conditions improve. Additionally, Christopher emphasized the acquisition of Nehring Electrical Works, completed during the quarter, as providing a substantial platform for expansion in the energy infrastructure space.
Mueller Industries, Inc. is an industrial corporation with holdings that manufacture vital goods for various markets including air, water, oil and gas distribution, climate comfort, food preservation, energy transmission, medical, aerospace, and automotive. The company operates a network of companies and brands across North America, Europe, Asia, and the Middle East.
It's important to note that the statements in the release that are not strictly historical may be "forward-looking" statements, which involve risks and uncertainties, as outlined in the company's SEC filings. As a result of these announcements, the company's shares have moved 4.4% on the market, and are now trading at a price of $67.16. If you want to know more, read the company's complete 8-K report here.
