Overview

• U.S. industrial manufacturer reported Q1 sales up 19% yr/yr, driven by higher prices and volumes

• Q1 net income and diluted EPS rose significantly from prior year

• Company completed Bison Metals Technologies acquisition and raised dividend by 40%

Outlook

• Company says business conditions and outlook remain consistent with its recent annual report

• Mueller expects production and shipments to improve as it adjusts to changes in product mix

• Company anticipates benefiting from recovery in U.S. construction markets and improved economic conditions abroad

Result Drivers

• HIGHER RAW MATERIAL COSTS - Increased raw material costs, particularly copper, led to higher selling prices and contributed to sales growth

• VOLUME GROWTH - Improved sales volumes in industrial, electrical, commercial and mechanical markets supported revenue increase

• BUSINESS SALE GAIN - Gain on sale of Sherwood Valve business added $41.4 mln to operating income

Company press release: ID:nBw7P0VdVa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Sales	Beat	$1.19 bln	$1.10 bln (1 Analyst)
Q1 EPS		$2.16
Q1 Net Income		$241.39 mln
Q1 Operating Income		$312.23 mln
Q1 Pretax Profit		$320.83 mln

Analyst Coverage

• The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the industrial machinery & equipment peer group is "buy."

• Wall Street's median 12-month price target for Mueller Industries Inc is $141.50, about 17% above its April 20 closing price of $120.90

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 15 three months ago

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