Mohawk comments on quarter earnings
CALHOUN, Ga. -- Mohawk Industries, Inc. (NYSE:MHK) announced it has increased its estimate of diluted earnings per share for the fourth quarter of 2001 to a range between 90- and 95-cents per share from the previous estimate of 74-cents.
The previous estimate, Mohawk said, was based on flat earnings per share with the same quarter in 2000. The favorable adjustment is based on sales running about 4- to 5 percent above last year while projecting gross profit as a percentage of sales to be in line with last year.
Selling, general and administrative expenses are estimated to be at approximately the same dollar level as the fourth quarter of 2000. The normal tax rate of 37 percent is projected to be reduced by additional tax credits. A possible net result of these factors is for fourth quarter earnings per share to be between 90- and 95-cents, estimates based on two months results and subject to change based on December's actual results and final year-end adjustments.
According to Mohawk, the company benefited from sales improvements in all product areas when compared to the first half of 2001 during the third and fourth quarters. "We are not certain if the sales improvement is a reaction to postponed orders after September 11th or indicative of economic improvement," the company stated in a press release. "Most economists have not forecast improvement until the second half of 2002."
However, Mohawk said that in considering the various factors impacting the business and assuming that the economy continues to improve during 2002, then "we expect the earnings per share for the first two quarters of 2002 to be approximately 10 percent to 15 percent above 2001 comparable quarters."
None of the above information includes the impact of Mohawk's proposed acquisition of Dal-Tile International, the company said.
Mohawk is a leading producer of woven and tufted broadloom carpet and rugs for residential and commercial applications.
Mohawk Industries, Inc. designs, manufactures and markets carpet in a broad range of colors, textures and patterns. It also offers a broad line of washable accent and bath rugs through Aladdin and area rugs through Karastan, American Rug Craftsmen and Helios. For more information on Mohawk Industries, Inc., go to www.mohawkind.com.