Mohawk Net Climbs 60.6 Percent in Q1
CALHOUN, Ga.-Bolstered by gains in sales and margins, Mohawk Industries posted a 60.6 percent jump in first-quarter net income, which totaled $81.1 million.
Jeffrey Lorberbaum, the company's chairman and CEO, said the bottom-line performance exceeded Mohawk's expectations. Lorberbaum attributed this to contributions from tile maker Marazzi and panel-board manufacturer Spano, which Mohawk acquired last year; improved productivity; and stronger sales outside of North America (which offset weather-reduced sales in the United States).
Net sales in the quarter, which ended on March 29, reached $1.8 billion, up 21.9 percent. Gross margin firmed by 119 basis points to 26.6 percent. Selling, general and administrative expenses rose 20.8 percent in dollars but fell 18 basis points as a percentage of sales, to 19.3 percent.
Lorberbaum said Mohawk's management continues to work on maximizing the acquisitions and on other efforts to bolster its legacy business, such as "driving innovation, operational excellence and sales growth to optimize our results. We remain positive about both our strategies to enhance Mohawk's results and the overall outlook for the floor-covering industry this year."