Mohawk Industries Reports Record First Quarter Earnings
Mohawk Industries announced first quarter net sales of $1.39 billion, a 28% increase year-over-year. Net earnings rose 59% compared to the prior year.
CALHOUN, Ga. – Mohawk Industries reported record first quarter earnings on April 21, 2004, with net sales reaching $1.39 billion. This represents a 28% increase from the $1.08 billion reported in the first quarter of 2003. Net earnings for the period climbed 59% to $66.3 million, or $0.98 per diluted share, up from $41.6 million, or $0.62 per share, in the same period last year.
The Mohawk segment saw net sales increase by 28% to $1.03 billion, while the Dal-Tile segment reported a 30% increase in net sales, reaching $359 million. Company officials attributed the growth to strong organic sales across product categories and the impact of the Lees Carpet acquisition.
"All of our businesses turned in outstanding results this quarter with each product category experiencing organic revenue growth as well as increased operating earnings," stated President and CEO Jeffrey S. Lorberbaum. "Our operating margin for the quarter increased to 8.6% of net sales in 2004 from 7.2% in 2003." Despite rising costs for natural gas, oil, and commodities, the company improved its profitability.
Mohawk has implemented price increases on carpet products to offset rising material and energy costs, which will be fully effective in the second quarter. The integration of Lees Carpet is progressing rapidly and has been accretive to earnings. The company also noted that hard surface products from both Mohawk and Dal-Tile performed strongly, with price increases implemented to address higher costs and a weaker dollar.