Mohawk Industries Reports Record Net Earnings for 2001
Mohawk Industries announced record net earnings and diluted earnings per share for the fourth quarter and full year of 2001. Fourth-quarter net earnings increased 51% year-over-year to $59.2 million.
Calhoun, Georgia – Mohawk Industries, a flooring manufacturer, reported record net earnings and diluted earnings per share (EPS) for the fourth quarter and full year of 2001 on February 7, 2002. For the fourth quarter, net earnings rose 51% to $59.2 million, or $1.11 per share, an increase of 50% from the prior year. Full-year net earnings reached $188.6 million, up 13% from 2000, with EPS at $3.55, up 15%.
Net sales for the fourth quarter increased 7% to $895.8 million compared to the same period in 2000. For the full year 2001, net sales grew 1% to $3.45 billion. The company attributed the earnings improvement to increased sales, higher gross profit, reduced selling, general, and administrative expenses, and lower interest costs. Additionally, tax credits contributed by lowering the company's effective income tax rate.
Company President and CEO Jeffrey S. Lorberbaum noted the strong performance despite a challenging economic environment. He highlighted sales growth exceeding expectations and effective cost management. The company also significantly reduced its debt, lowering its debt-to-capitalization ratio to 25% and decreasing overall debt by 48% during the year. Operating cash flow achieved a record $326 million.
Mohawk anticipates first-quarter 2002 EPS to increase 20-30% over 2001, with second-quarter EPS projected to rise 15-20% year-over-year. The company cautioned that economic uncertainty and rising petroleum prices could impact future results. Mohawk is also advancing its proposed merger with Dal-Tile, expected to close in the near future.