Home / Knowledge / News / Textiles / Carpet maker Mohawk sales up 5.5% in Q1
Carpet maker Mohawk sales up 5.5% in Q1
03
May '13
Mohawk Industries, Inc. announced 2013 first quarter net earnings of $50 million and diluted earnings per share (EPS) of $0.72. Excluding unusual charges, net earnings were $61 million and EPS was $0.87, a 50% increase over last year's first quarter EPS. Net sales for the first quarter of 2013 were $1.5 billion, an increase of 5.5% versus the prior year's first quarter. For the first quarter of 2012, net sales were $1.4 billion, net earnings were $40 million and EPS was $0.58.

Commenting on Mohawk Industries' first quarter performance, Jeffrey S. Lorberbaum, Chairman and CEO, stated, "Improvements in the U.S. market, product mix, productivity improvements, lower amortization and the Pergo acquisition all contributed to our results, offset by the negative impact of a slower European economy and one less day in the period compared to last year. During the quarter, we generated adjusted EBITDA of $151 million and reduced SG&A by 90 basis points, relative to net sales, across the enterprise even as we increased investment in growth areas of the business."

"In January we completed the acquisition of Pergo. In both the U.S. and Europe, we are executing our Pergo integration strategy, which includes asset consolidation, manufacturing process improvements, product line enhancements, and management, sales and administrative restructuring. After the first quarter closed, we completed the acquisition of the Marazzi Group, which makes Mohawk the global leader in ceramic tile.

“We also received regulatory approval of our proposed acquisition of the Belgian board manufacturer Spano in late April and expect to complete the transaction shortly. For two decades, we have created significant shareholder value through a dual strategy of growing our established business while enhancing the performance of acquired companies. With an experienced management team, we have the resources and talent to execute these strategies. Regardless of the pace of the global economic recovery, we remain committed to driving innovation, operational excellence and geographic expansion to optimize our business."

Mohawk segment sales were relatively flat during the first quarter, with operating income rising 24%, excluding unusual charges. Carpet sales growth was partially offset by home center transitions that were completed late in the first quarter and lower rug sales. Sales of our premium products in the specialty channel continued to show strength, with expected improvement in the home center channel as new introductions gain traction in the second quarter. We began implementing a 4-6% carpet price increase during the quarter to offset our material cost changes; however, the timing of the implementation will not cover an estimated $5 - $10 million of those higher costs in the second quarter.

Mohawk Industries


Must ReadView All

Textiles | On 27th Jun 2017

Govt defers tax deduction at source provision under GST

E-commerce players in India will not be required to deduct tax on...

Apparel/Garments | On 27th Jun 2017

Future Group aims Rs 12,000 crore in fashion business

Future Group, which runs retail stores across India under various...

Textiles | On 27th Jun 2017

AEPC & NSDL to help exporters with GST compliances

Apparel Export Promotion Council (AEPC) and National Securities...

Interviews View All

Subhashini Srinivasan
The S Studio

Ethnicwear market will see an upward trend if uniqueness and quality are...

Ajay Ghariwala
Luthra Group

We are ready to adopt or follow every opportunity

Priyanka
Studio Priyanka Rajiv

‘To reinvent the age-old tradition of embroidery to suit demographics and...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
July 2017

July 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search