Mohawk Reports Higher Earnings, Sales in Quarter
Calhoun, GA, Oct. 31, 2014 -- Mohawk Industries reported third quarter net earnings of $151 million and earnings per share of $2.06.
Excluding unusual charges, net earnings were a record $179 million, a 21% increase over last year's third quarter adjusted earnings.
Net sales were $1.99 billion, an increase of 1.5% from a year ago.
For the nine months ending September 27, net sales were $5.9 billion, an increase of 8% versus the prior year.
"We delivered good results this period, even in an environment with sluggish demand, due to our market diversification and strong execution," said CEO Jeffrey Lorberbaum.
Carpet net sales were $779 million, up 1% over last year.
Mohawk's said its participation in the more value-oriented polyester category increased due to the company's proprietary Continuum fiber process.
Ceramic net sales were $780 million, up 2% over last year as reported or 3% at a constant exchange rate.
Laminate and wood net sales were $463 million, up approximately 3% over last year as reported and at a constant exchange rate.
"We anticipate that growth in the U.S. economy and the flooring category will remain unchanged during the fourth quarter with residential remaining slow as commercial grows," Lorberbaum said.
"We foresee upside for the U.S. flooring industry over the medium to long term. The forecast for new home construction in the U.S. is for robust growth for the next several years, and we believe that stronger employment numbers and improving consumer confidence will result in increased home remodeling."
In the near term, Lorberbaum said a strengthening dollar could affect sales and income.