Mohawk Industries Inc announced 2007 second quarter net earnings of $115 million and diluted earnings per share (EPS) of $1.68 (both 4% below last year).
Net sales for the quarter were $1,977 million, a decrease of 4% from 2006. During the quarter the Company had strong cash flow from operations of $226 million and EBITDA of $276 million. In addition, debt of $208 million was paid down during the quarter reducing the Company debt to capital ratio to 38%.
For the first half of 2007, net earnings were $206 million and EPS was $3.01 (both 3% above last year). Net sales for the first half of 2007 were $3,841 million representing a 4% decrease from 2006.
The sales decreases for both the quarter and the year to date are attributable to slowing U.S. industry demand in the residential new construction and redecorating business.
In commenting on the second quarter results, Jeffrey S. Lorberbaum, Chairman and CEO, stated: "Second quarter earnings were ahead of our guidance for the quarter. The European business maintained its strong growth and performance partially offsetting the cyclical down turn in the U.S."
Our U.S. commercial business continued performing better than our residential business. U.S. residential flooring is in a cyclical downturn with soft sales in the new home and consumer redecorating categories.
During the quarter, Mohawk took another important step in its strategy to become a complete provider of floor covering with the announced acquisition of four wood manufacturing plants.
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.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
