Mueller Water Products, Inc. (MWA)

Mueller Water Products, Inc. (MWA – yield 2.90%) is the leading North American provider of water infrastructure and flow control products. … State and local governments account for 98% of public water and wastewater systems, which are funded by local taxes and fees. The company has been fighting the effects of the recessionary climate for the past several years. … The American Society of Civil Engineers reported in 2009 that the country faced an annual shortfall of existing drinking water systems of at least $11 billion. This does not include any growth in demand over the next 20 years. It is estimated that $335 billion will be needed to satisfy water infrastructure needs over these coming 20 years, of which $200 billion will be needed in the areas that Mueller’s products serve. …

“During the past three difficult years, the company has not only initiated cost saving efforts, including closing and consolidating plants, reducing workforce, selling unnecessary assets and modernizing operations, it has also reduced inventories and debt, and achieved quicker turnover of inventory. Moreover, it has expanded into an exciting part of the market. Smart metering and pipe condition assessment are areas that hold promise to bring business to Mueller and help municipalities understand where their needs are greatest and give them a means to prioritize their expenditures.”

John Gay, The Quiet Investor, 32 Kyle Ct., Willowbrook, IL 60527, 11/1/11

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