Mohawk Swings To $20 Million Fourth Quarter Profit

Calhoun, GA, Feb. 25, 2010--Mohawk Industries reported fourth quarter net earnings of $20 million or $0.29 per share.

A year ago, the firm recorded a net loss of $128 million and loss per share was $1.87.

Net sales for the 2009 fourth quarter were $1.34 billion, a decrease of 9% from 2008.

For 2009, Mohawk's net loss was $5 million or a net loss per share of $0.08, compared to a loss of $1.45 billion or $21.32 per share in 2008.

Mohawk said the sales decrease for both the quarter and the year in the U.S. and Europe is primarily attributable to continuing weak consumer discretionary spending, low home sales and soft business investment.

"Our fourth quarter earnings exceeded expectations due to the implementation of cost savings efforts, personnel reductions and plant consolidations. Our balance sheet is strong with over $500 million of cash and a net debt to total capital ratio of 26%," said CEO Jeffrey Lorberbaum.

"All our segments have reduced infrastructure and capacity and improved productivity. New products have been developed in all segments that will enhance our sales and market position.  In spite of the very difficult environment, we are strategically positioning our company for growth.

"Our geographic product expansion continues with enhanced distribution of ceramic tile in Mexico, laminate in Russia and wood flooring in Western Europe. Environmental sustainability is a priority and Newsweek recognized Mohawk as one of the top 15 companies in the consumer product category for our efforts."

The company said it has reorganized its commercial carpet manufacturing operations, consolidated its backing facilities, combined carpet and ceramic distribution warehousing and reduced staffing levels.

Mohawk also said it is raising prices in the first quarter this year on carpet and wood.

Dal-Tile sales for the fourth quarter were down 20%. The firm has expanded its position in the home center channel and the Mexican market.

Unilin sales increased 2% for the quarter.

Mohawk said its residential business should improve during the year while the commercial category still faces significant headwinds.

Related Topics:Daltile, Mohawk Industries