ICS Magazine

Mohawk Industries Profit Up, Tops Views

October 21, 2004
CALHOUN, Ga. - Mohawk Industries Inc. reported third-quarter earnings rose on stronger sales of flooring products under its Mohawk and Dal-Tile brands.

In the quarter ended Oct. 2, Mohawk earned $112.7 million, or $1.67 a share, on revenue of $1.53 billion. In the same period last year, it earned $91.4 million, or $1.36 a share, on revenue of $1.3 billion.

Analysts were expecting earnings of $1.50 a share, according to Thomson First Call.

The Calhoun-based flooring company said raw material and energy costs continued to put pressure on margins. Mohawk has had to raise prices to pass along the higher costs.

Mohawk expects fourth-quarter earnings of $1.46 to $1.55 a share, compared with Wall Street's expectations $1.55.

The company said the fourth quarter has four fewer days, lowering sales by 7 percent. In addition, consumer confidence, job trends and continually high oil prices will make comparisons from last year difficult. It earned $1.51 a share in the last fourth quarter.

In the nine months ended Oct. 2, the company earned $1.17 billion on revenue of $4.4 billion. In the same period last year, it earned $980 million on revenue of $3.6 billion