Mohawk First Quarter Earnings Move Higher

Calhoun, GA, May 5, 2011 -- Mohawk Industries reported first quarter net earnings of $23.4 million and earnings per share of $0.34, compared to net earnings of $20.5 million and earnings per share of $0.30 a year ago.

Excluding restructuring charges, first quarter 2011 net earnings were $29 million and earnings per share were $0.42.

Sales in the quarter were $1.34 billion.

"Sales reported during the period were flat with last year with the outlook strengthening for the balance of the year," said CEO Jeffrey Lorberbaum.

"In the U.S., both remodeling and home sales are expected to improve over last year, and non-residential investment is estimated to increase over 8% in 2011."

Mohawk segment net sales declined 3.5%, with commercial seeing improvement and the residential category still lagging, the company said.

Mohawk said residential order trends turned positive at the end of the first quarter and continued into April, while the commercial business continued its recovery with modular tile products growing significantly.

The hospitality channel is rebounding, Mohawk said, after several years of reduced capital spending.

Dal-Tile segment net sales increased approximately 1% over last year. The company said it continued the expansion of its Reveal Imaging technology and increased its position in the home center channel.

Unilin net sales increased approximately 7% both as reported and on a constant exchange rate, Mohawk said.

European sales were positive while U.S. markets remain difficult but are showing improvement. Raw material costs are running ahead of the company's price increases.

"After the seasonally slow first quarter, we believe the industry recovery will continue the balance of the year," the company said.

"Commercial renovation is improving as companies begin to reinvest. We anticipate pent-up demand in the residential remodeling market and improving home sales will positively impact results this year."

Related Topics:Mohawk Industries, Daltile