Mueller Co.’s earnings rise on lower sales costs

Capitalizing on lower sales costs, Paul Mueller Co. (OTC: MUEL) improved its 2015 net income by 25 percent to $8.6 million from $6.9 million in 2014.

The Springfield-based stainless steel equipment manufacturer late last week reported 2015 diluted earnings per share of $6.95, an increase of $1.39 from a year earlier, according to a news release.

While Mueller Co.’s revenue was 11 percent lower last year at $178.6 million, its costs of sales declined 14 percent to $126.4 million. Gross profit was $52.2 million, which was further helped by lower administrative expenses.

Mueller Co.’s 2015 financial notes:
    •    Fourth-quarter net income rose 71 percent to $1.7 million, or $1.36 per diluted share, from $986,000, or 80 cents per share, in the same three months of 2014.
    •    Domestic sales for the year declined nearly 12 percent to $117.4 million, and European sales dropped 10 percent to $63.6 million.
    •    Company subsidiary Mueller Field Operations Inc. completed the fabrication of a new tank, which resulted in $500,000 in pretax income for 2015.

Mueller Co.’s assets as of Dec. 31 were $118.6 million.

The company’s over-the-counter stock closed yesterday at $31 per share, compared to a 52-week range of $23 to $36 per share.

On Friday, Mueller Co.’s board of directors approved a $3 million share repurchase program, according to a separate release.

The plan is designed to return excess cash to the company’s shareholders.