Mueller Co. posts fourth-quarter net loss

Springfield-based stainless steel manufacturer Paul Mueller Co. (OTC: MUEL) yesterday reported a fourth-quarter net loss of $1.6 million, a 143 percent drop from profits of $3.6 million in the same quarter of 2011. 

For the three months ended Dec. 31, the company lost $1.28 per share, compared to earnings of $2.96 per share in fourth-quarter 2011, according to a news release.

Mueller Co. officials said the results were adversely affected by an arbitration with former President and CEO Matthew Detelich, which was settled Dec. 19. The settlement, which satisfied all remaining obligations to Detelich under his employment agreement and supplementary retirement plan, resulted in expenses of $1.3 million in the fourth quarter and $2 million for the year. Detelich also received $3.8 million from the company in 2011, the company said. Detelich exited the company's top post in April 2011. He was succeeded by Robert Nosal, who was replaced by David Moore in August 2011.  

Sales in the fourth quarter rose 11 percent to $48.9 million, compared to $44 million in the same quarter of 2011, while the cost of sales in the latest quarter jumped 20.4 percent to $39.2 million, according to the release.

For the full year, net income decreased 2.3 percent to $1.97 million from $2.02 million in 2011. 

During the year, sales rose 16.5 percent to $179.6 million, followed by an increase in cost of sales to $133.4 million. Domestic sales accounted to $122 million, while European sales were $57.5 million, according to the release.

Mueller Co.'s assets totaled $108.6 million as of Dec. 31. 

Following the earnings release, the company's pink sheet stock dropped 25.7 percent to $16.90 per share as of 11:30 a.m. from yesterday's close of $22.75 per share. Its 52-week range is $19.50 to $29.75.