Paul Mueller Co. suspends dividend after 1Q loss

The board of directors for Springfield-based Paul Mueller Co. has decided to suspend the company's dividend "due to the difficult world economic conditions," officials said in a news release.

"These are unprecedented economic conditions not seen since the Great Depression, and management of the company is focused on minimizing losses and maintaining cash flow to position the company for a turnaround in the markets it serves," officials said in the release.

The stainless-steel manufacturer had a net loss of $818,000 in the first quarter, compared to a $1.1 million profit in first-quarter 2008. The loss per share was 69 cents, compared to a profitable 97 cents per share a year ago.

Net sales for the quarter were down 14 percent to $44.6 million, and gross profit was up 18 percent at $9.9 million.

Selling, general and administrative expenses jumped nearly 57 percent to $10.7 million from $6.8 million a year earlier. Operating income fell to a loss of $784,000, compared to $240,000 in income a year ago.

In early February, Paul Mueller laid off about 110 office staff and production workers in Springfield to reduce operating costs.

"Management appreciates the support of the shareholders and the commitment of all employees during this difficult situation and looks forward to more normal times and the resumption of a dividend," officials said in the release.

Shares (MUEL.PK) closed Tuesday at $22, compared to a 52-week range of $17 to $53.