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Mohawk Q2 adjusted EPS highest in history
06
Aug '14
For the second quarter of 2014 ending June 28, 2014, carpet and rugs maker Mohawk Industries, Inc has achieved a 20 percent increase over last year's second quarter adjusted EPS, which is the highest quarterly adjusted EPS in the company's history.

Mohawk realised 2014 second quarter net earnings of $153 million and diluted earnings per share (EPS) of $2.08. Excluding unusual charges, net earnings were $162 million and EPS was $2.21, a 20 percent increase over last year's second quarter adjusted EPS and the highest quarterly adjusted EPS in the company's history.

Net sales for the second quarter of 2014 were $2.05 billion, an increase of approximately 4 percent against prior year's second quarter or 3 percent on a constant exchange basis. For the second quarter of 2013, net sales were $1.98 billion, net earnings were $85 million and EPS was $1.16. Excluding unusual charges, net earnings were $134 million and EPS was $1.84.

Carpet segment net sales for the second quarter were $780 million, up one percent over last year. Adjusted operating income for the segment rose 15 percent as a result of increased productivity, improved quality and cost reductions in operations and administration.

Mohawk said that its patented Continuum technology is stimulating growth in its new polyester carpet collections and that its state-of-the-art yarn new project is 75 percent complete. Mohawk is also expanding the distribution of its premium Karastan carpets by providing a broader offering and increasing the number of retailers selling our high-end brand.

Commercial orders are growing now that it has substantially completed the product transition to its own fibers. Mohawk has also reorganized its commercial sales organization into smaller regions segmented by customer type with a complete portfolio for each channel.

From overall sales, ceramic segment net sales were $797 million, up 5 percent over the same period of last year, while laminate and wood segment sales were $501 million, an increase of 6 percent over last year, or 3 percent on a constant exchange rate.

Commenting on Mohawk Industries second quarter performance, CEO Jeffrey Lorberbaum said, "Our adjusted operating income increased 160 basis points as productivity initiatives, cost reductions, price increases and manufacturing consolidation drove higher earnings across the business.

He added, “Top line growth was less than we anticipated due to slower improvement in U.S. housing and remodeling; however, profits were in line with expectations as a result of successful product introductions, productivity improvements and better cost controls.

“We reduced SG&A compared to last year across the enterprise, even as we reinvested into the business to promote new product collections and enhance our sales strategies. We are continuing to invest in our acquisitions to improve profitability, increase mix and streamline the business”.

Fibre2fashion News Desk - India

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