Mohawk Ind. sees net sales increase 6% in 2Q
August 5, 2011,
The company's overall sales for the second quarter, ended July 2, were up 6% to $1.5 billion and 3% with a constant exchange rate, and net earnings came in at $61 million with diluted earnings per share (EPS) of $0.88.
Excluding restructuring charges, net earnings were $66 million and EPS was $0.95. By comparison, the year-ago net earnings were $68 million and EPS was $0.95.
Residential sales were soft, although the company said each of its business segments experienced year-over-year growth.
"We are performing in line with the industry with growth in commercial remodeling and lower residential activity," the company explained. "Our commercial business posted sales gains in both tile and broadloom products."
The carpet price increase announced in February was fully implemented and the second increase initiated in April was partially implemented in the quarter. It will be completed during the third quarter.
Also in the second quarter, the Mohawk segment's South Carolina extrusion expansion was completed, a commercial carpet plant was consolidated, and the company announced the closure of a yarn spinning plant.
"Continued emphasis on productivity improvements has yielded more efficient processes in our manufacturing and administrative areas allowing us to reduce personnel costs by an additional $10 million annually," the company added.
To overcome ongoing raw material price hikes and energy inflation, the company said it is increasing prices "as needed."