Mohawk Up 22% in 2Q
July 31, 2006,
Buoyed by a recent acquisition, deep cuts in capital spending, and a $6.3 U.S. customs refund, second-quarter profits at Mohawk Industries jumped up by 21.9%, to $119.5 million from $98.1 million last year.
Unilin made a solid contribution to the bottom line as well, generating an operating profit of $59.7 million. That helped offset weakness in the core Mohawk business, where operating profits fell by 3.3%, to $99.0 million from $102.4 million.
Mohawk slashed its capital spending in the period by 42.9%, to $37.0 million from $64.8 million last year, generating a cash savings of $27.8 million.
Jeffrey Lorberbaum, chairman and ceo, said, “The Mohawk segment grew sales by 5% with margins improving from the first quarter.” He said the Mohawk division — which includes the carpet and Mohawk Living home textiles segments — will raise some prices to recover recently raised material costs.
“Industry sales improved from the first quarter but were still behind last year in units,” Lorberbaum continued.
“Sales trends continued with the commercial channel and residential construction channel performing better than the residential replacement channel.”
MOHAWK INDUSTRIES INC.
|QTR. 7/1 (x000)||2006||2005||%CHANGE|
|a. Second-quarter results include miscellaneous expenses of $3.6 million, compared with $922,000 during the same period a year ago; and a U.S. customs refund of $6.2 million.
b. Six-month results include $6.3 million in miscellaneous expenses, compared with $2.9 million a year ago; and a U.S. customs refund of $6.3 million.
|Oper. income (EBIT)||223,045||167,145||23.4|
|Per share (diluted)||1.76||1.45||21.4|
|Average gross margin||28.8%||27.0%||—|
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