Mueller Slumps as Orders Decline Before Water Law Takes EffectRachel Layne
Mueller Water Products Inc., a maker of hydrants, meters and pipe fittings, fell the most in five months as orders slipped before new regulations take effect next month.
Mueller Water declined 4.9 percent to $8.42 at the close in New York, the most since June 5. The Atlanta-based company has gained 50 percent this year, outperforming the 19 percent increase in the S&P Global Water Index.
Mueller Water is “engaged” in talks with the U.S. Environmental Protection Agency about the Reduction of Lead in Drinking Water Act, according to a filing today. The law takes effect Jan. 4.
“Although we currently produce and ship fire hydrants that are compliant with the act and EPA’s guidance, some of our distributors and end users are delaying orders of fire hydrants until further clarity regarding the issue can be obtained,” according to the filing.
The company doesn’t anticipate any effect on its results for fiscal 2014, which ends in September.