Mohawk Reports Highest Adjusted Q4 Earnings Ever

Calhoun, GA, Feb. 20, 2015 -- Mohawk Industries reported fourth quarter net earnings of $147 million and earnings per share of $2.00 on net sales of $1.95 billion.

The company said that excluding unusual charges, net earnings were $167 million, a 27% increase over last year's fourth quarter adjusted earnings and the highest fourth quarter adjusted earnings in company history.

A year ago, Mohawk reported net income of $95 million on sales of $1.92 billion.

Net sales for the fourth quarter of 2014 were $1.95 billion, an increase of 1.4% versus the prior year's fourth quarter or approximately 5% on a constant exchange basis. For the fourth quarter of 2013, net sales were $1.92 billion, net earnings were $95 million and EPS was $1.29; excluding unusual charges, net earnings were $131 million and EPS was $1.79.

For all of 2014, the company reported net income of $532 million on sales of $7.8 billion, an increase of 6% over 2013.

"During the period, we significantly increased our adjusted operating income by 18% compared to the prior year as a result of productivity initiatives, aggressive cost containment and benefits from our acquisitions," said CEO Jeffrey Lorberbaum.

Carpet sales for the quarter were $780 million, up 4% over last year.

Mohawk said its commercial carpet business increased its sales and margins.

Ceramic net sales for the quarter were $744 million, up 1% over 2013 as reported or 7% at a constant exchange rate.

Laminate and wood sales were $459 million, decreasing approximately 2% over last year as reported and increasing 4% at a constant exchange rate.

In the U.S., wood flooring sales grew, Mohawk said, with engineered wood sales rising substantially, while laminate sales were hurt by lower mix, product changes and inventory reductions by our customers.

Mohawk said it expects stronger U.S. growth this year, driven by improvements in the U.S. economy and the flooring market.

Stifel Nicolaus analyst John Baugh said Mohawk "rose to the challenge once again," despite a poor domestic flooring market, currency issues and no benefit yet from falling energy costs.