Shaw Earnings Fall on Residential Carpet Decline

Omaha, NE, August 8, 2008--Earnings for Shaw Industries declined 26 percent in the second quarter as revenues fell from $1.4 billion to $1.33 billion.

Parent company Berkshire Hathaway reported net earnings for the second quarter that were off 7.6 percent to $2.88 billion, or $1,859 per class A share, from $3.12 billion, or $2,018 per class A share, in the year ago period as decline prices hurt insurance earnings and a slumping housing market took a toll on the company’s building-related businesses.

Excluding investment gains, profit was $1,465 a share, beating analyst’s estimates of $1,370.

Earnings also dropped for the building products category, which includes Acme Brick, Johns Manville and Benjamin Moore paints.

Sales volume of carpet has fallen 11 percent year to date for Shaw because of a 13 percent decline in residential sales. The company anticipates lower sales this year than in 2007.

Shaw has increased is prices this year to keep pace with the rising costs of raw materials.

Related Topics:Shaw Industries Group, Inc.