Paul Mueller reports 4Q profit of $10.9M

The Springfield stainless steel equipment manufacturer had gross profits of $10.9 million during the quarter ended Dec. 31, up from $8.5 million a year ago.

Net income for the quarter was $6 million, compared to $3.8 million in fourth-quarter 2005. Earnings per diluted share were $5.12, up from $3.31 the previous year.

Company officials say the increase in net income is directly related to a noncash credit of $3.16 million during the quarter. The credit was recorded to reduce the balance of a valuation allowance established in 2004 for the company’s net deferred tax assets.

In 2006, Paul Mueller had net sales of $152.9 million, compared to $138.1 million in 2005. Gross profits were $27.4 million, down from $28.2 million the year before; and net income was $7.02 million, an increase of $420,000 from 2005.

Earnings per diluted share for the year were $6.04, compared to $5.64 the year before.

The company reported a backlog of $116.9 million as of Dec. 31.

Shares (OTC: MUEL.PK) were trading this morning at a 52-week high of $49. They closed Wednesday after the earnings release at $48.90.