Paul Mueller Company Released Its Third Quarter Earnings Report


SPRINGFIELD, Mo., Oct. 18, 2007 (PRIME NEWSWIRE) -- Paul Mueller Company (Pink Sheets:MUEL) today released its third quarter report for the period ended September 30, 2007, as follows:



                           Paul Mueller Company and Subsidiaries
                  ----------------------------------------------------
                                   NINE-MONTH REPORT
                  ----------------------------------------------------
                                      (Unaudited)
                  ----------------------------------------------------

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

                     Three Months Ended           Nine Months Ended
                        September 30                September 30
                  ------------------------   -------------------------
                      2007         2006          2007          2006
                  -----------  -----------   ------------  -----------

 Net Sales        $58,424,000  $36,698,000   $161,703,000  $96,289,000
 Cost of Sales     51,688,000   30,860,000    137,281,000   79,723,000
                  -----------  -----------   ------------  -----------
   Gross Profit   $ 6,736,000  $ 5,838,000   $ 24,422,000  $16,566,000
 Selling, General
  and Admin.
  Expenses          6,557,000    5,601,000     18,977,000   15,656,000
                  -----------  -----------   ------------  -----------
   Operating
    Income        $   179,000  $   237,000   $  5,445,000  $   910,000

 Other Income         185,000      213,000        684,000      667,000
                  -----------  -----------   ------------  -----------
   Income before
    Provision
    (Benefit)
    for Income
    Taxes         $   364,000  $   450,000   $  6,129,000  $ 1,577,000
 Provision
  (Benefit) for
  Income Taxes        137,000      252,000      2,232,000      550,000
                  -----------  -----------   ------------  -----------
   Net Income     $   227,000  $   198,000   $  3,897,000  $ 1,027,000
                  ===========  ===========   ============  ===========

 Earnings per
  Common Share -
     Basic           $   0.20     $   0.17        $  3.38     $   0.89
     Diluted         $   0.19     $   0.17        $  3.32     $   0.89



                           Twelve Months Ended
                               September 30
                      -----------------------------
                           2007            2006
                      -------------   -------------

  Net Sales           $ 218,301,000   $ 135,801,000
  Cost of Sales         183,000,000     110,728,000
                      -------------   -------------
   Gross Profit       $  35,301,000   $  25,073,000
  Selling, General
   and Admin.
   Expenses              25,467,000      20,999,000
                      -------------   -------------
   Operating
    Income            $   9,834,000   $   4,074,000

  Other Income              511,000         655,000
                      -------------   -------------
   Income before
    Provision
    (Benefit)
    for Income
    Taxes             $  10,345,000   $   4,729,000
  Provision
   (Benefit) for
   Income Taxes             453,000        (127,000)
                      -------------   -------------
   Net Income         $   9,892,000   $   4,856,000
                      =============   =============

  Earnings per
   Common Share -
      Basic               $  8.58        $  4.22
      Diluted             $  8.43        $  4.19



 NOTES:  1)  Net income for the third quarter of 2007 was adversely
             affected by an increase in the LIFO reserve of
             $1,046,000, after tax, while net income for the third
             quarter of 2006 was adversely affected by an increase in
             the LIFO reserve of $1,230,000, after tax. Net income
             for the nine months ended September 30, 2007, was
             adversely affected by an increase in the LIFO reserve of
             $3,167,000, after tax; while net income for the first
             nine months of 2006 was adversely affected by an increase
             in the LIFO reserve of $1,871,000, after tax.

         2)  The effective tax rates for the three months and nine
             months ended September 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
             September 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 September 30, 2006,
             varied from the statutory rate (34%) due to the benefit
             of a net operating loss carry forward, tax credits, and a
             noncash credit of $1,200,000 that was a partial reduction
             of the valuation allowance established during 2004 for
             all of the Company's net deferred tax assets.


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

                             September 30   December 31
                                 2007          2006
                            -------------  -------------

 Total Assets               $ 106,632,000  $  92,816,000
 Working Capital            $   6,987,000  $  10,678,000

 Current Ratio                   1.11 : 1       1.19 : 1
 Net Worth                  $  22,564,000  $  20,569,000
 Book Value Per Share       $       18.83  $       17.36

 Backlog                    $ 114,031,000  $ 116,913,000


            

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