Mohawk Earnings, Sales Beat Expectations

Calhoun, GA, Aug. 2, 2013 -- Mohawk Industries reported second quarter net earnings of $85 million and earnings per share of $1.16, compared to last year's earnings of $73 million and earnings per share of $1.06.

Excluding unusual charges, net earnings were $134 million and per share earnings were $1.84.

Net sales were $2.0 billion, an increase of approximately 35% versus last year's second quarter sales of $1.5 billion.

"Mohawk, the world's largest flooring manufacturer, today reported our most successful second quarter on record with strong revenue and profit growth, as both our legacy business and recent acquisitions delivered solid performances that exceeded our expectations," said CEO Jeffrey S. Lorberbaum.

"For the quarter, our legacy net sales increased 6% as reported, with the balance of our growth stemming from our recent acquisitions of Pergo, Marazzi and Spano."

Carpet sales for the quarter were $771 million, up 5% over last year, rising to their highest levels in more than four years due to improvements in residential new construction and remodeling and continued strength in the commercial sector, Mohawk said.

Residential sales in the specialty channel showed substantial growth, and home center business increased during the period.

Rugs improved with a greater focus on new distribution channels and product categories.

Ceramic sales were $760 million, up 88% over last year, with strong growth in the legacy Dal-Tile business as well as the Marazzi acquisition.

Analyst Stifel Nicolaus said the Mohawk number were well ahead of its estimates.

North American sales rose in the low teens with strength in commercial specialty retail, home center channels and continued expansion in Mexico.

Laminate and wood segment net sales were $471 million, up 33% over last year, primarily due to the acquisitions of Pergo and Spano.

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