Mohawk Expects to Meet Estimates

Atlanta, GA, Apr. 10--Mohawk Industries expects to meet Wall Street's lowered consensus earnings forecast for the second quarter, according to John Swift, the company's chief financial officer. Talking at a SunTrust Robinson Humphrey investor conference in Atlanta after a presentation by Mohawk president and CEO Jeff Lorberbaum, Swift said, "Yes, that's in the range." He was commenting on consensus estimates, which are currently calling for the company to earn $1.09 per share in the second quarter, down from an average forecast of $1.18 earlier this year. Last month, Mohawk warned that its profit in the first half of 2003 would fall short due to weak demand as well as higher raw material costs. The company cited geo-political uncertainty, harsh winter weather in the Northeastern and central U.S., and falling consumer confidence as factors in its gloomier outlook. Mohawk is forecasting that its second quarter net income will be in a range of $1.05 to $1.15 a share. In the same period last year, the company earned $1.10 per share. Consensus estimates for the year are $4.40 per share. Swift said the company could not predict whether it would meet that target because it had not forecast that far in advance. In answer to a question from an investor, Lorberbaum said Mohawk and others in the flooring products industry had upgraded their operations and were increasingly resistant to imports produced by cheap labor. Lorberbaum noted that the company has invested heavily in automation of its equipment.