Mohawk Net Up 15.6 Percent in "Most Successful Second Quarter"
CALHOUN, Ga.-In what Jeffrey Lorberbaum, chairman and CEO, characterized as the company's "most successful second quarter on record," Mohawk Industries reported an increase of 15.6 percent in net income, to $84.6 million.
The flooring giant's top line was the major contributor to its performance in the quarter, which ended on June 29. Total net sales jumped 34.5 percent to $2 billion, and Lorberbaum credited contributions from Mohawk's most recent acquisitions--Spano Group, Marazzi Group and Pergo, all of which were closed this year. Both the company's legacy businesses and these acquisitions "delivered solid performances that exceeded our expectations," Lorberbaum said.
Looking at the company's business segments, net sales from the carpet sector were up 5 percent, rising to their highest level in five years. Ceramic-segment net sales rose a dramatic 88 percent, with significant boosts from both Marazzi and Dal-Tile. The laminate and wood segment posted a 33 percent sales gain, with Pergo and Spano, along with strong sales in the legacy North American businesses, providing the fuel.
Gross margin was down 42 basis points to 26 percent. Selling, general and administrative expenses climbed 35.7 percent in dollars and 17 basis points as a percentage of sales, to 19.3 percent.
Lorberbaum said, "We are increasingly confident in the continued strengthening of the U.S. market, and we believe that continued job growth, expanded new home construction and greater remodeling investments, along with our new acquisitions, will improve our future results."