Paul Mueller Co. posts $1.2M loss in 2Q

Paul Mueller Co. (OTC: MUEL.PK) incurred a net loss of $1.2 million during the second quarter, a 256.6 percent decrease compared to earnings of $767,000 in the second quarter of fiscal 2010.

For the three months ended June 30, the company had a $1 loss per diluted share, compared to earnings of 63 cents per share in the same quarter last year, according to a news release.

President and CEO Robert Nosal said the company's second-quarter results suffered due to a one-time expense funding the severance package of six-year Paul Mueller Co. President and CEO Matthew Detelich, who left his position April 19.

According to the release, Paul Mueller Co. paid severance and noncompete payments totaling $776,600.

During the first quarter, Paul Mueller Co. posted a net loss of $257,000. For the first half of the fiscal year, however, the company has a net loss of $1.5 million, an improvement from the same time last year, when the company had a net loss of $2.2 million.

Sales for the second-quarter were $42.6 million, a 30.5 percent increase from sales of $32.7 million in the same quarter of fiscal 2010.

Domestic sales were $25.8 million with a net loss of $2.2 million, while the company's European operation, Mueller BV, had sales of $16.7 million with a net income of $1 million, according to the release.

"When you take away the one-time expense, the business is rebounding, the business is coming back," Nosal said. "We are making progress, and we fully expect the progress to continue."

The company manufactures stainless steel equipment and performs on-site construction, repair and maintenance.  

Paul Mueller's pink sheet stock closed Aug. 2 at $17.50 per share, compared to a 52-week range of $14.56 to $27.