- THE MAGAZINE
CALHOUN, Ga. -- Mohawk Industries, Inc. (NYSE:MHK) set record net earnings and diluted earnings per share (EPS) of $1.05 per share for the third quarter (21 percent above last year) or $55.7 million (20 percent above last year) in net earnings.
This improvement in EPS was the result of increased sales, reduced interest costs, and an adjustment to reduce the effective income tax rate for tax credits, according to Jeffrey S. Lorberbaum, Mohawk president and CEO.
Net sales for the quarter increased 4 percent to a record $869 million compared to $838 million for the third quarter of 2000. The sales increase was attributable to the sales growth in soft non-carpet products and hard surface products offset by a small reduction in carpet sales.
EPS for the first nine months of 2001 was 5 percent above last year at $2.44 or $129 million (1 percent over last year) in net earnings. Both were records for Mohawk. This improvement in EPS was attributable to reduced interest costs, an adjustment to reduce the effective income tax rate for tax credits, and a reduced number of diluted shares outstanding. Net sales for the first nine months of 2001 were $2.441 billion, a 1 percent decrease from the first nine months 2000 sales of $2.456 billion.
"Although we are very pleased with our financial results this quarter, it is tempered by the tragedy that occurred on Sept. 11, 2001," said Lorberbaum. "We at Mohawk extend our deepest sympathy to all those affected by this tragedy. We also want to offer thanks to the police, firefighters and emergency workers for their efforts over the last month. Our complete support is with our armed forces as they pursue the terrorists who planned and committed these terrible acts."
According to Lorberbaum, "During the third quarter, we experienced strong sales growth of our soft non-carpet products. Additionally, our hard surface product categories continued to grow according to plan. We are pleased with our progress in the hard surface product roll out and look forward to continued significant long- term growth in this area."
Mohawk Industries was named "Best Overall Carpet Manufacturer" by floorcovering retailers in the Floor Covering News Award of Excellence as part of Surfaces 2001. In addition, the Home Furnishing News biannual survey of consumer brand preferences reported that Mohawk brands attained the top three positions for broadloom and the number two and three rating for rugs.
Mohawk (www.mohawkind.com) is a leading producer of woven and tufted broadloom carpet and rugs for residential and commercial applications. The Company designs, manufactures and markets carpet in a broad range of colors, textures and patterns, and offers a broad line of washable accent and bath rugs through Aladdin and area rugs through Karastan, American Rug Craftsmen and Helios.