Mueller Industries, Inc. has reported its financial results for the third quarter of 2024, comparing them to the same period in 2023. The company's net sales increased to $997.8 million from $819.8 million, indicating a significant growth of 21.7%. Operating income also saw a substantial rise, reaching $206.7 million compared to $181.0 million in the third quarter of 2023, reflecting an increase of 14.2%.
Earnings before taxes surged to $217.8 million from $189.0 million, representing an increase of 15.2%. Net income also experienced a notable uplift, reaching $168.7 million compared to $132.7 million, marking a significant increase of 27.1%. The diluted earnings per share (EPS) for the quarter stood at $1.48, up from $1.17 in the third quarter of 2023, demonstrating a strong growth of 26.5%.
The increase in net sales was attributed to the inclusion of $102.4 million of sales from recently acquired businesses, as well as higher copper prices. Despite this growth, selling, general, and administrative expenses increased primarily due to the inclusion of $3.9 million of operating costs from recently acquired businesses, as well as $2.7 million in transaction-related expenses.
Furthermore, investments in unconsolidated affiliates contributed $3.2 million of income, compared to a $2.4 million loss in the prior year period. The company generated a net cash flow from operations of $231.4 million, resulting in a strong cash and short-term investments balance of $969.6 million at quarter-end, with a current ratio of 4.9 to 1.
Greg Christopher, Mueller’s CEO, expressed satisfaction with the results, highlighting the company's ability to deliver strong performance and generate significant cash despite challenging business conditions. He also emphasized the progress made in integrating recently acquired businesses, which positively contributed to the results.
Mueller Industries, Inc. remains optimistic about the future, anticipating a more stable and favorable environment driven by declining interest rates, moderating inflation, and the resolution of election-related uncertainty. The company is well-positioned to take advantage of improved conditions and actively pursue new opportunities to expand and grow. As a result of these announcements, the company's shares have moved 14.1% on the market, and are now trading at a price of $82.22. For the full picture, make sure to review Mueller Industries's 8-K report.