Paul Mueller Company Released Its Second Quarter Earnings Report


SPRINGFIELD, Mo., July 20, 2007 (PRIME NEWSWIRE) -- Paul Mueller Company (Pink Sheets:MUEL) today released its second quarter report for the period ended June 30, 2007, as follows:



                 Paul Mueller Company and Subsidiaries

                 -------------------------------------
                          SIXTH-MONTH REPORT
                 -------------------------------------
                              (Unaudited)

                ------------------------------------------------------
                          CONSOLIDATED SUMMARIES OF OPERATIONS
                ------------------------------------------------------

                   Three Months Ended           Six Months Ended
                         June 30                     June 30
                -------------------------   --------------------------
                    2007          2006           2007          2006
                -----------   -----------   ------------   -----------
 Net Sales      $53,740,000   $34,115,000   $103,279,000   $59,591,000
 Cost of Sales   44,574,000    28,305,000     85,593,000    48,863,000
                -----------   -----------   ------------   -----------
  Gross Profit  $ 9,166,000   $ 5,810,000   $ 17,686,000   $10,728,000
 Selling, General
  and Admin.
  Expenses        6,666,000     5,092,000     12,420,000    10,055,000
                -----------   -----------   ------------   -----------
   Operating
    Income      $ 2,500,000   $   718,000   $  5,266,000   $   673,000
 Other Income       308,000       228,000        499,000       454,000
                -----------   -----------   ------------   -----------
  Income before
   Provision
   for Income
   Taxes        $ 2,808,000   $   946,000   $  5,765,000   $ 1,127,000
 Provision
  (Benefit) for
  Income Taxes    1,022,000       264,000      2,095,000       298,000
                -----------   -----------   ------------   -----------
    Net Income  $ 1,786,000   $   682,000   $  3,670,000   $   829,000
                ===========   ===========   ============   ===========
 Earnings per
  Common Share -
   Basic        $      1.55   $      0.59   $       3.18   $      0.72
   Diluted      $      1.52   $      0.59   $       3.13   $      0.71

                                  Twelve Months Ended
                                        June 30
                             -----------------------------
                                  2007           2006
                             -------------   -------------
 Net Sales                   $ 196,575,000   $ 130,425,000
 Cost of Sales                 162,172,000     105,722,000
                             -------------   -------------
     Gross Profit            $  34,403,000   $  24,703,000
 Selling, General and
   Admin. Expenses              24,511,000      20,430,000
                             -------------   -------------
     Operating Income        $   9,892,000   $   4,273,000
 Other Income                      539,000         542,000
                             -------------   -------------
     Income before
       Provision for
       Income Taxes          $  10,431,000   $   4,815,000
 Provision (Benefit) for
   Income Taxes                    568,000        (261,000)
                             -------------   -------------
     Net Income              $   9,863,000   $   5,076,000
                             =============   =============
 Earnings per Common Share
     Basic                   $        8.56   $        4.40
     Diluted                 $        8.43   $        4.36

                                        
 NOTES:

 (1) Net income for the second quarter of 2007 was adversely
     affected by an increase in the LIFO reserve of $1,538,000, after
     tax, while net income for the second quarter of 2006 was
     adversely affected by an increase in the LIFO reserve of
     $536,000, after tax. Net income for the six months ended June 30,
     2007, was adversely affected by an increase in the LIFO reserve
     of $2,122,000, after tax, while net income for the first six
     months of 2006 was adversely affected by an increase in the LIFO
     reserve of $657,000, after tax.


 (2) The effective tax rate for the three months and six months
     ended June 30, 2006, varied from the statutory rate (34%) due to
     the effect of the alternative minimum tax

 (3) The effective tax rate for the twelve months ended June 30,
     2007, varied from the statutory rate (34%) due to a noncash
     credit of $3,157,000 recorded during the fourth quarter of 2006
     to reduce the remaining balance of the valuation allowance
     established during 2004 for all of the Company's net deferred tax
     assets. The effective tax rate for the twelve months ended June
     30, 2006, varied from the statutory rate (34%) due to the benefit
     of the net operating loss carryforward, tax credits, and a
     noncash credit of $1,200,000 that was a partial reduction of the
     valuation allowance established during 2004 for all the Company's
     net deferred tax assets.

                            ------------------------------
                                 FINANCIAL HIGHLIGHTS
                            ------------------------------

                               June 30        December 31
                                 2007             2006     
                            -------------    -------------
                                            
 Total Assets               $115,988,000     $ 92,816,000

 Working Capital            $  9,747,000     $ 10,678,000

 Current Ratio                  1.13 : 1         1.19 : 1

 Net Worth                  $ 22,987,000     $ 20,569,000

 Book Value Per Share       $      19.20     $      17.36

 Backlog                    $139,341,000     $116,913,000


            

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