Mueller Water Products, Inc. (NYSE:MWA) reported that in 4Q2015 net sales came at $311.4 million, a drop of 2.9% compared to the same period a year earlier. Operating income was $44.4 million against $43 million in the comparable period, a jump of 3.3%, while adjusted operating income came at $45 million versus $43.1 million in the same period, a year ago.
Net income came at $0.14 per diluted share compared with $0.16 per share in the prior year, although adjusted net income improved to $0.14 per diluted share from $0.12 per diluted share. Adjusted EBITDA jumped to $59.9 million, up from $57.3 million over the prior year period. Adjusted net income for FY2015 increased 30% to $0.39 per diluted share from $0.30 per diluted share. Mueller Water lowered its total debt unpaid by $52 million during 2015.
The expert comments
Gregory E. Hyland, the Chief Executive Officer, President and Chairman of Mueller Water, said that adjusted EBITDA margin for 4Q2015 jumped 130 basis points to 19.2%. They recorded strong margin jump at Mueller Co. as adjusted EBITDA margin jumped 230 basis points to 28.8%. At Mueller Co., the orders were not encouraging in areas affected by unfavorable adverse weather conditions in 3Q2015. Distributors were able to fulfill end-market demand mainly through their higher starting4Q2015 inventory levels.
Hyland added that net sales of Anvil in 4Q2015 declined $14 million to $93.7 million following lower shipment volumes into the gas and oil industry. As Mueller Water management look out to FY2016, they expect growth to rebound in major end markets driven by increased spending in non-residential and residential construction. With increase in capacity utilization, the operating leverage is expected to improve next fiscal.
Mueller Water Products, Inc. (NYSE:MWA) redefined its reporting divisions to offer increased transparency of its operations to the financial community and stockholders and to better highlight how it manages its operations. Therefore, it now reports segment performance for Mueller Technologies and Mueller Co.
