Paul Mueller reports double-digit profit declines

Springfield-based Paul Mueller Co. on Wednesday reported that its net income sank 73 percent in the fourth quarter.

The stainless steel manufacturer had net income for the quarter of $1.4 million, compared to $5.2 million in fourth-quarter 2007. For the year, net income was $4.1 million, down from $9.1 million the year before.

Net sales were $65.3 million for the quarter, compared to $79.4 million a year earlier. Sales for the year were $217.9 million, down from $241.1 million in 2007.

Selling, general and administrative expenses more than doubled in the fourth quarter to $13.8 million and climbed 36 percent to $34.4 million for the year, compared to $25.3 million in 2007. The increases were largely attributed to Paul Mueller's acquisitions of Paltrok Beheer BV and MEKO Group, both of which manufacture Mueller-designed dairy farm milk coolers.

In early February, the company laid off 44 office staff and 60 plant workers at its Springfield headquarters, citing economic conditions.

Shares (MUEL.PK) last closed Wednesday at $21.99, compared to a 52-week range of $17 to $63.