Mohawk Reports Lower Earnings on Higher Sales

Calhoun, GA, Aug. 4, 2011 -- Mohawk Industries reported second quarter net earnings of $61 million and earnings per share of $0.88. A year ago Mohawk recorded earnings of $68 million and per share earnings of $0.95.

Net sales for the second quarter were $1.5 billion, a rise of 6%.

For the six months ended July 2, net sales were $2.8 billion, an increase of approximately 3% over last year.

"All of our businesses reported year over year sales growth and our operating margin improved to 7.3%, an increase of 50 basis points over last year excluding restructuring charges," said CEO Jeffrey Lorberbaum.

"This is our highest operating margin since 2008 as a result of continuing cost reductions, selling price increases and productivity gains throughout the enterprise. U.S. economic growth was lower than expected in the second quarter with the U.S. residential business remaining soft and the commercial business continuing to grow."

Mohawk segment net sales grew about 1%, with improving commercial sales offsetting soft residential sales.

The company said its commercial business posted sales gains in both tile and broadloom. The carpet price increase announced in February was fully implemented in the period and the second increase initiated in April will be completed during the third quarter.

Dal-Tile net sales grew more than 4%, with commercial sales growth exceeding residential.

Sales in all channels grew over the prior year, Mohawk said, and the firm outperformed the overall market.

Unilin net sales increased approximately 18%.

Related Topics:Daltile, Mohawk Industries