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Mohawk Industries Inc. recently announced 2012 first quarter net earnings of $40 million, up 38% over last year. Net sales for the quarter were $1.4 billion, increasing 5% as reported and 6% with a constant exchange rate. For the first quarter of 2011, net earnings were $23 million.
Dal-Tile segment net sales grew 14% during the quarter through increased residential remodeling and commercial renovation, successful product launches, and growth in the Mexican market. Price increases, along with energy surcharges, are being implemented to recover material and freight costs.
“Volume increases, price increases, cost reductions and lower interest expense contributed to our earnings growth in the quarter,” said Jeffrey S. Lorberbaum, chairman and CEO. “In March, Standard & Poor’s upgraded our credit rating and Moody’s elevated our outlook to positive, reducing the interest rate on our notes. In April, we paid our 2012 maturing notes using our bank revolver, which has lower interest rates. Our balance sheet remains strong with net debt to adjusted EBITDA at 2.2 times and approximately $500 million available for strategic opportunities, after the payment of the 2012 notes.”
For additional information, visit www.mohawkind.com.