Mohawk Industries’ Second Quarter Sales Flat; Dal-Tile Sales Grow 7%
Mohawk Industries Inc. recently announced 2012 second quarter net earnings of $73 million. Net earnings excluding restructuring charges were $79 million, a 20% increase over last year’s second quarter adjusted EPS. Net sales for the second quarter of 2012 were $1.5 billion, reportedly in line with the prior year and an increase of 2% on a constant exchange rate. For the second quarter of 2011, net earnings were $61 million; net earnings (excluding restructuring charges) for the second quarter of 2011 were $66 million.
The Dal-Tile segment sales grew 7% during the quarter. The segment posted gains from increases in both residential and commercial sales, as well as growth in the Mexican market. Operating margins were enhanced by higher volumes, greater manufacturing efficiencies, improved material formulations and increased recycling.
“Selling prices offsetting raw material inflation, productivity gains, product mix improvements and lower interest costs all contributed to our results,” said Jeffrey S. Lorberbaum, chairman and CEO. “Sales increased 2% on a constant exchange rate with commercial sales continuing to outpace residential sales. We continue to control SG&A cost while increasing new product investments across all businesses. During the quarter, we generated adjusted EBITDA of $187 million, free cash flow of $96 million and paid off $336 million of senior notes. We have addressed many of today’s economic challenges by enhancing our product differentiation, reducing costs, improving efficiencies and entering new product categories and geographies.”
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