Shaw Earnings Down on Slow Residential Business

Omaha, NE, May 3, 2008--Pretax earnings in the first quarter for Shaw Industries fell 44 percent compared to a year ago and management expects earnings this year to fall below 2007, according to a filing with the Securities and Exchange Commission.

Revenues in the first quarter were $1.22 billion, a decrease of $61 million or five percent from the first quarter of 2007.

The company said the decrease was primarily due to an 8 percent reduction in carpet sales, driven by a 10 percent decline in residential carpet volume. However, sales of commercial carpet rose.

The earnings also reflect lower manufacturing efficiencies from decreased production as well as the rising raw material costs.

Overall, quarterly earnings for parent company Berkshire Hathaway fell from $1.68 billion last year to $607 million this year, reflected in softness in its insurance and finance units.

Related Topics:Shaw Industries Group, Inc.