Mueller Water Products, Inc. disclosed that its fiscal second quarter ended March 31, 2017, with net sales at US$199.7million and net income of US$73.3million, or US$0.45 per diluted share. Operating income from continuing operations stood at US$10.9million.
Other results included the US$68.6million incomes from discontinued operations, primarily the acquisition and sale of Anvil, and a US$9.8million warranty charge associated with some radio products produced between 2011 and 2014.
“Overall consolidated second quarter net sales increased due to the strength at Mueller Technologies, where the team grew net sales 20.7 per cent in the quarter. But net sales performance at Mueller Co. was disappointing this quarter, largely the result of lower international sales and the severe weather conditions in the western United States,” President and CEO of Muller Water Products, J Scott Hall, said. “Despite the slightly lower net sales at Mueller Co., adjusted operating margin improved 40 basis points at 19.8 per cent, t he 19 consecutive quarter of margin expansion. The improvements in both adjusted operating margin and adjusted operating income from continuing operations were due to productivity improvements. We also completed a number of strategic initiatives in the second quarter, including the acquisition of Singer Valve, which added automatic control valves to our product portfolio; the initiation of the repurchase of US$50million of shares under the accelerated share repurchase programme; the 33 per cent increase in our quarterly dividend to US$0.04 per share; the amendment of our term loan, which lowers our interest rate spread; and the divestiture of Anvil. We continue to expect year-over-year growth in 2017 from demand for our products in our addressed water markets, and we believe that Muller Water Products is well-positioned to deliver long-term value for our shareholders.”
Source: Mueller Water Products, Inc.