Mueller Industries Stock Gains On Solid Q3 Results

Mueller Industries, Inc. MLI reported third-quarter sales growth of 58.7% year-over-year to $982.25 million.
Sales by segments: Piping Systems $688.2 million (+68.1% Y/Y), Industrial Metals $182.25 million (+53.4% Y/Y) and Climate $122.25 million (+25.3% Y/Y).
EPS improved to $3.01 compared to $0.76 in 3Q20.
The operating income increased by 237% Y/Y to $233.35 million, and the margin expanded by 1257 bps to 23.8%.
Mueller Industries generated cash from operating activities year-to-date of $181.48 million, compared to $196.88 million a year ago.
The company reduced debt by $230 million, ending the quarter with a debt to total capitalization below 10% and a current ratio of 2.7 to 1.
COMEX copper averaged $4.30 per pound, an increase of 47% versus $2.93 per pound in 3Q20.
"Our strong financial results were driven by continued favorable market demand and our teams' exceptional operating performance in the face of industry-wide labor and supply constraints and rising costs," commented Greg Christopher, Mueller's CEO.
Mueller Industries said it continually evaluates portfolio and pursue opportunities to exit businesses that do not provide the up-side growth potential.
It anticipates current market conditions to continue for the foreseeable future.
Price Action: MLI shares traded higher by 6.10% at $46.185 on the last check Tuesday.

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