Mueller maintains profits in high copper price environment

Mueller Industries Inc. experienced net sales of just under $1 billion in this year’s second quarter, a spike of 11.4 percent for the Collierville, Tennessee-based red metals products maker compared with the second quarter of 2023.

The sales increase, attributable in part to the soaring value of copper throughout much of this year, did not yield higher net income for the company, however. Mueller reports net income in this year’s second quarter of $160.2 million, which is down 9.6 percent from the $177.7 million it earned in the April to June 2023 period.

“The increase in net sales was attributable to higher unit shipments in most of our businesses, price increases tied to higher copper prices and the inclusion of one month of reported sales for our recently acquired Nehring [Illinois-based wire and cable production] business,” the company says.

“COMEX copper averaged $4.55 per pound during the quarter, 18.4 percent higher than in the second quarter of 2023.”

The company, which operates a brass mill in Port Huron, Michigan, and a copper tube mill in the United Kingdom, states in a May investor presentation that it utilized recycled scrap for over 58 percent of the manufacturing process in 2022.

In its investor presentation, Mueller indicates it is undertaking a $20 million investment at its U.K. tube mill and refinery to enable the copper tube mill to melt and recycle scrap.

“Our businesses continue to perform well despite persistent heightened inflation and restrained construction activity,” Mueller CEO Greg Christopher says.

“We maintain a positive long-term outlook for our business. Our internal investments are paying off, and we expect they will yield even greater benefits as market conditions improve.”

The company says the $575 million acquisition of wire and cable producer Nehring Electrical Works Co. offers the potential to bolster its presence in the electrical and power infrastructure space.