Mohawk Reports Higher Earnings, Sales in Q2
Calhoun, GA, July 31, 2014 -- Mohawk Industries reported second quarter net earnings of $153 million and earnings per share of $2.08 on net sales of $2.05 billion.
Excluding unusual charges, net earnings were $162 million and per share earnings were $2.21, a 20% increase over last year's second quarter and the highest in the company's history.
Net sales were up 4% over a year ago.
For the second quarter of 2013, net sales were $1.98 billion and net earnings were $85 million.
"Top line growth was less than we anticipated due to slower improvement in U.S. housing and remodeling; however, profits were in line with expectations as a result of successful product introductions, productivity improvements and better cost controls," said CEO Jeffrey Lorberbaum.
Carpet segment net sales for the quarter were $780 million, up 1% over last year.
Mohawk said its patented Continuum technology is stimulating growth in polyester collections, and its yarn project to support it is 75% complete. It is also also expanding the distribution of our premium Karastan carpets by providing a broader offering and increasing the number of retailers.
Ceramic segment net sales were $797 million, up 5% over last year.
Laminate and Wood segment sales were $501 million, up 6% over last year, or 3% on a constant exchange rate.
In the U.S., greater participation in new construction increased sales of wood flooring.
"In the third quarter, we anticipate further improvement in the U.S. market with limited growth in Europe and Russia," Mohawk said in its earnings statement.