Mohawk Adjusted Earnings, Sales Rise in Q3

Calhoun, GA, Nov. 3, 2011 -- Mohawk Industries reported third quarter net earnings of $47 million and  earnings per share of $0.68 compared to net earnings of $51 million and earnings per share of $0.74 a year ago.

Adjusted net earnings were $57 million and earnings per share was $0.83 excluding unusual items. Adjusted earning last year were $51 million.

Net sales for the quarter were $1.44 billion, compared to $1.3 billion a year ago, an increase of 10%.

For the nine months ended Oct. 1, net sales were $4.3 billion, an increase of about 5%. Net earnings were $131 million and $1.90 per share, down from $139 million and $1.99 per share.

"Sales in both the residential and commercial categories expanded with commercial renovation leading the growth and new residential continuing to lag," said CEO Jeffrey Lorberbaum.

"Each segment continues to lower costs with new processes, reduced infrastructure and investment in more efficient assets."

Mohawk segment net sales rose 6% as residential sales grew across most channels and product categories.

Commercial sales momentum continued from the previous quarter, Mohawk said, with both broadloom and carpet tile achieving gains.

During 2011, Mohawk implemented two price increases that were fully realized by the end of the third quarter. Raw material costs in the quarter were greater than Mohawk anticipated and the higher expense will impact fourth quarter margins, the company said.

Our Dal-Tile segment net sales grew almost 11% during the quarter, with both residential and commercial categories showing gains with product mix continuing to decline, Mohawk said.

Sales increased in all channels with particular strength in home centers due to rising sales of mosaics, wall tile and porcelain tile.

Unilin net sales increased approximately 19%. In the U.S., sales of laminate flooring grew through expanded programs in all channels.

Related Topics:Daltile, Mohawk Industries