Paul Mueller Co. posts 834% profit increase

Springfield-based stainless steel manufacturer Paul Mueller Co. (OTC: MUEL) recorded third-quarter profits of $852,000, an 834 percent increase compared to a net loss of $116,000 in the same quarter last year.

The company posted 70-cent earnings per diluted share for the three months ending Sept. 30, compared to a 10-cent loss per diluted share in third-quarter 2011, according to a news release.

Mueller Co.'s third-quarter results were adversely affected by severance and noncompete expenses of $365,000 related to the April 2011 exit of former President and CEO Matthew Detelich. Detelich was succeeded by Robert Nosal, who was replaced by David Moore in August 2011.

The company's net sales for the third quarter increased 25 percent to $46.1 million and sales costs rose 37.7 percent to $34.1 million, resulting in a gross profit of $12 million. Domestic sales were $32.8 million during the latest quarter, and European sales via Mueller BV were $13.2 million, the release said.

Mueller Co. manufactures stainless steel equipment used in more than 100 countries on dairy farms and for industrial applications such as food, dairy and beverage processing; pharmaceutical, biotechnological and chemical processing; water distillation; heat transfer; heat recovery; HVAC; and process cooling. As of Sept. 30, the company's assets were $106.3 million, its liabilities and shareholders' investment was $106.3 million, and its backlog was $58 million, according to the release.

Mueller Co.'s pink sheet stock closed Oct. 26 at $25.50, compared to a 52-week range of $15 to $29.75.