Mohawk's Earnings Rise in Second Quarter

Calhoun, GA, Aug. 2, 2012 -- Mohawk Industries reported second quarter net earnings of $73 million and earnings per share of $1.06, compared to $61 million or $0.88 per share, a year ago.

Net sales were $1.5 billion, no change from last year, but an increase of 2% on a constant exchange rate.

For the six months ending June 30, 2012, net sales were $2.9 billion, an increase of 2% versus prior year and 4% on a constant exchange rate.

Net earnings for the six-month period were $114 million compared to $84 million a year ago.

Mohawk segment sales were down 3% during the second quarter. Carpet sales for both the industry and Mohawk were approximately flat compared to last year with residential remodeling activity slow, the company said.

The firm said its rug sales continued to be soft due to lower retail sales, as well as retailers deferring promotional activities and further reducing inventory within the channel. Mohawk said its SmartStrand Silk premium carpet collection experienced strong sales growth.

Dal-Tile segment sales grew 7% during the quarter or 8% on a constant exchange rate. The segment posted gains from increases in both residential and commercial sales and growth in the Mexican market.

Unilin segment sales decreased 2% but increased 7% on a constant exchange rate. Outside North America, laminate and wood flooring sales grew from continued expansion in the do it yourself channel, expanded distribution in the U.K. and Australian sales.

In North America, laminate sales grew from increased promotional activity by large retailers and greater penetration in the home center channel.

Mohawk said that U.S. order rates have shown some improvement at the beginning of the third quarter.

Related Topics:Mohawk Industries, Daltile