Mohawk Up Substantially YOY in Third Quarter

Calhoun, GA, November 6, 2015—Mohawk Industries, Inc. has announced 2015 third quarter net earnings of $215 million, or diluted earnings per share of $2.89, compared to 2014 third quarter net earnings of $151 million, or diluted earnings per share of $2.06.

Carpet segment net sales for the quarter were $779 million, up 1% over last year. Ceramic segment net sales for the quarter were $780 million, up 2% over last year as reported or 3% at a constant exchange rate. Laminate and Wood segment net sales for the quarter were $463 million, up approximately 3% over last year as reported and at a constant exchange rate.

Commenting on Mohawk Industries' third quarter performance, Jeffrey S. Lorberbaum, chairman and CEO, says, "In addition to our record earnings per share, our adjusted operating income reached a record level at $309 million, up 30% over the same quarter last year. All segments contributed to our sales and operating income improvements. Our new segment structure that we announced last quarter has benefited our performance, enabling us to optimize our regional businesses by enhancing our product offerings, manufacturing assets and distribution strategies. During the period, we made significant progress in aligning our IVC acquisition with our European and U.S. flooring businesses and our KAI acquisition with our European ceramic operations. We are introducing products to take advantage of the unique capabilities and customer relationships of each organization. As we leverage the strength of these businesses, we anticipate greater market penetration and continued earnings growth in the future."

According to analyst Stifel, "SGA (selling, general and administrative) expenses, if adjusted for acquisition impact, and FX (foreign exchange)—both of which were considerable—deleveraged about 70 basis points as the company has chosen to invest in salesmen, product centers, merchandising and other areas."