follow us

Acquisition boosts Mohawk results

Calhoun, Ga. -- Getting a big assist from last year's acquisition of a Belgian flooring producer, which helped to offset weakness in its core U.S. carpeting business, Mohawk Industries recorded a first-quarter profit of $71.1 million, up slightly from $70.0 million.

The diversified floor covering and home textiles producer managed to boost earnings modestly even with a steep jump in interest expense as the company took on debt to pay for the October 2005 purchase of Unilin Holding NV, a producer of laminated floor products. Interest expense more than tripled, rising by 239.6%, to $40.3 million from $11.9 million last year. But Mohawk got the increased interest costs back and then some as Unilin contributed $40.0 million to operating profits during the period.

Boosted by Unilin, which brought in $302.6 million during the first three months of the year, Mohawk sales jumped up by 28.9%, to $1.9 billion from $1.5 billion last year. Mohawk's Dal-Tile business yielded a 17.9% increase in sales and a 19.0% boost in operating profit.

Sales at the core U.S. floor coverings business increased by 5.4%, to $1.2 billion, helped by price increases, but operating profit fell off by 20.3%, to $52.3 million, hurt by slowing sales growth and weaker margins in the residential replacement carpet business.

Featured Video

  • Online Moves From Afterthought To Main Thought For Textiles Suppliers

    Camera Icon More Videos

Other Home Furnishings Sites

Casual Living
Gifts and Decorative Accessories
Home Accents Today
Kids Today
Furniture Today