Mohawk Earnings, Sales Rise in First Quarter

Calhoun, GA., May 3, 2012 -- Mohawk Industries reported first quarter net earnings of $40 million and earnings per share of $0.58, a 38% increase over last year.

Net sales for the quarter were $1.4 billion, rising 5% as reported and 6% with a constant exchange rate.

For the first quarter of 2011, net earnings were $23 million and earnings per share was $0.34.

"Volume increases, price increases, cost reductions and lower interest expense contributed to our earnings growth in the quarter," said CEO Jeffrey S. Lorberbaum.

Analyst Stifel Nicolaus upgraded Mohawk stock to a "buy."

"We were impressed with results across the company’s segments, particularly the strength of the Dal-Tile and Unilin segments," Stifel said.

Mohawk segment sales grew 1% as the firm implemented price increases to cover material cost in the second period.

Higher carpet sales in the segment were offset by lower rug sales from deferred customer promotions, inventory reductions and lower product mix.

In the commercial business, Mohawk said its hospitality and core business improved, but there was weakness in its premium products.

Dal-Tile segment net sales grew 14% during the quarter through increased residential remodeling and commercial renovation, successful product launches and growth in the Mexican market.

Sales grew in all channels, driven by new products featuring Reveal Imaging, larger sizes, realistic wood designs and a premium commercial collection.

Unilin segment net sales grew 4% as reported and 7% on a local basis supported by growth of laminate flooring and panels.

Related Topics:Daltile, Mohawk Industries