Mohawk Reports Higher Sales, Lower Earnings

Calhoun, GA, Feb. 23, 2012 -- Mohawk Industries reported fourth quarter net earnings of $43 million and earnings per share $0.62. In the fourth quarter of 2010, net earnings were $46 million and earnings per share was $0.66.

Excluding unusual items, net earnings were $50 million, a 9% increase over last year.

Net sales for the quarter were $1.4 billion, increasing 9% as reported and 10% with a constant exchange rate.

Excluding unusual items for the fourth quarter of 2010, net earnings were $45 million.

For the full year of 2011, net earnings were $174 million and per share earnings were $2.52. Excluding unusual items, net earnings for the full year of 2011 were $202 million, a 16% increase over the previous year.

Net sales for the full year of 2011 were $5.6 billion, representing a 6% increase over 2010.

For the full year of 2010, net earnings were $185 million. Excluding unusual items for the full year of 2010, net earnings were $173 million.

"The company's fourth quarter results reflect improvements in sales and adjusted net earnings over last year with all segments showing sales growth for the last three quarters," said CEO Jeffrey S. Lorberbaum.

In the U.S., sales in both the residential and commercial categories expanded, with commercial growing at a faster pace, Mohawk said.

Mohawk said it has increased prices in the first quarter across many product categories to recover higher material costs.

Mohawk segment net sales grew by more than 8% with both the residential and commercial channels showing improvement due to its next generation of soft carpets, branded SmartStrand Silk. Mohawk also expanded its filament extrusion and carpet tile capacity.

Dal-Tile segment net sales grew almost 10% during the quarter with commercial growth exceeding residential. In the first quarter, Mohawk said it is raising prices 3-5% on certain products to recover higher material and transportation costs.

Unilin net sales increased approximately 10%. Mohawk said its laminate and wood flooring products continued growing in Europe.

In the first quarter, Mohawk said it anticipates additional sales growth, but at a lower rate than the fourth quarter.
Conference call Friday, February 24, 2012 at 11:00 AM Eastern Time.

The telephone number is 1-800-603-9255 for US/Canada and 1-706-634-2294 for International/Local. Conference ID # 45556735. A replay will also be available until March 9, 2012 by dialing 855-859-2056 for US/local calls and 404-537-3406 for International/Local calls and entering Conference ID # 45556735.

Related Topics:Mohawk Industries, Daltile