Mohawk Earnings, Sales Rise in Quarter
Calhoun, GA, May 3, 2013 -- Mohawk Industries reported first quarter net earnings of $50 million and earnings per share of $0.72, up from $41 million a year ago.
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Excluding unusual charges, net earnings were $61 million.
Net sales were $1.5 billion, up 5.5% from $1.4 billion a year ago.
"Improvements in the U.S. market, product mix, productivity improvements, lower amortization and the Pergo acquisition all contributed to our results, offset by the negative impact of a slower European economy and one less day in the period compared to last year,' said CEO Jeffrey Lorberbaum.
In January Mohawk completed the acquisition of Pergo. After the quarter ended it completed the acquisiton of Marazzi.
Mohawk segment sales were relatively flat during the first quarter.
The company said that carpet sales growth was partially offset by home center transitions that were completed late in the first quarter and lower rug sales.
Sales of its premium products in the specialty channel continued to show strength, with expected improvement in the home center channel as new introductions gain traction in the second quarter.
Dal-Tile sales increased 5% as new residential construction, commercial sales and business in Mexico were strong, Mohawk said.
Commercial sales grew in the restaurant, retail and hospitality channels.
Unilin sales grew 20% or 19% at a constant exchange rate due primarily to the Pergo acquisition.
Analyst Stifel Nicolaus said, "We suspect Western Europe remains a drag but the U.S. is seeing modest recovery in residential retail and a strong recovery in new build."