Paul Mueller Co. grows 2Q profit

Springfield-based stainless-steel manufacturer Paul Mueller Co. reported a 47 percent jump in net income for the second quarter despite a decline in net sales.

The company had net income of $1.35 million, compared to $920,000 in second-quarter 2008, according to a July 23 earnings release. Earnings per share were $1.13, compared to 78 cents a year ago.

Net sales were $41.6 million, down 17 percent from $50.2 million in second-quarter 2008. Cost of sales, however, also fell to $27.8 million from $41.2 million a year ago. That resulted in gross profit of $13.8 million, up from $9 million last year.

In April, Paul Mueller Co. acquired one of its distributors, Mueller B.V., which now is a wholly owned subsidiary of the company. Mueller B.V. had $1.24 million in net income for the quarter, up from $347,000 a year ago, and $13.5 million in sales, more than double the $6.06 million in sales in the same period last year.

Paul Mueller Co.'s total assets at the end of the second quarter were $60.3 million, down from $73.9 million at the end of 2008. Total liabilities and shareholders' investment were $136.9 million, down from $152.1 million a year ago. Backlog was $54.5 million, compared to $56.4 million six months earlier.

Shares (OTC: MUEL.PK) last closed at $25.50, compared to a 52-week range of $15.90 to $51.50.[[In-content Ad]]