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Paul Mueller Co.'s expenditure reductions included employee furloughs and workforce schedule reductions.
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Paul Mueller Co.'s expenditure reductions included employee furloughs and workforce schedule reductions.

Mueller Co. cuts expenses to improve earnings in Q2

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Paul Mueller Co. (OTC: MUEL) posted lower sales but higher net income as the company worked to reduce expenses in the second quarter.

The Springfield-based stainless steel equipment manufacturer conducted furloughs and workforce schedule reductions and delayed major renovations and maintenance projects, according to a news release.

"In the U.S., the company has furloughed some employees and have had the majority of the employees working reduced schedules of 24-32 hours a week since May to keep the employees working while stretching out the workload and maintaining customer delivery dates," officials said in the release.

The release did not disclose the number of impacted U.S. workers. In Europe, Mueller Co. has reduced its workforce by 49 positions since the beginning of the year. The company employs 560 locally and 928 companywide, according to past reporting.

Second quarter net income was up nearly 30% to $3.8 million, or $3.22 per diluted share. Sales dipped by 1.6% to $53.2 million.

Mueller Co.'s order backlog was $87.5 million as of June 30. That's down from $107.3 million at the end of the first quarter.

"The COVID-19 pandemic continues to be a challenge," officials said in the release. "The strong beginning-of-the-year backlog in the U.S. and reduced spending has partially mitigated the initial financial impact of the pandemic, resulting in strong earnings for the first six months.

"However, the uncertainty in the economy has slowed order entry, creating excess capacity."

Mueller Co.'s over-the-counter stock traded as high as $27.95 per share this morning, compared with a 52-week range of $18 to $31.50.

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