Mohawk Fourth Quarter Sales Grow, Dal-Tile Sales Up 15%
Mohawk Industries Inc. recently announced 2012 fourth quarter net earnings of $66 million. Excluding restructuring charges, net earnings were $70 million, a 40% increase over last year’s fourth quarter adjusted EPS. Net sales for the fourth quarter of 2012 were $1.44 billion, an increase of 4% vs. the prior year’s fourth quarter and an increase of 5% on a constant exchange rate basis. For the fourth quarter of 2011, net sales were $1.38 billion and net earnings were $43 million.
For the year ended December 31, 2012, net sales were $5.79 billion, an increase of 3% vs. the prior year and 4% on a constant exchange rate basis. Net earnings for the year were $250 million. For the year ended December 31, 2011, net sales were $5.64 billion and net earnings were $174 million.
Dal-Tile segment sales grew 15% during the fourth quarter, with gains in the U.S. and Mexico reportedly supported by new product introductions with enhanced textures, sophisticated designs and larger formats in both residential and commercial categories. Margin expansion came from higher volumes, enhanced productivity and improved yields partially offset by plant shutdowns to reduce inventory as new capacity ramped up faster than anticipated.
Dal-Tile sales grew in all residential channels with successful launches of new Reveal Imaging designs, coordinated wall, floor and mosaics collections, larger format tiles from a Chinese joint venture and new decorative assortments in the home center channel. Commercial sales continued strong, with the hospitality sector leading the category. In Mexico, production was increased at the Salamanca facility; the plant’s efficiencies and yields are being optimized. During the quarter, Dal-Tile lowered overall manufacturing costs with higher efficiencies, improved material formulations, increased recycled content and effective quality initiatives.
“Price increases, productivity improvements, mix and lower interest all contributed to solid results for the period,” said Jeffrey S. Lorberbaum, chairman and CEO. “During the quarter, we generated adjusted EBITDA of $165 million and cash flow from operations of $289 million and for the year adjusted EBITDA of $677 million and cash flow from operations of $588 million. In the U.S., we improved our mix as our higher value products gained greater traction with consumers. Our recent expansion into new international markets has generated additional growth in Mexico, Russia and Australia.”
For additional information, visit www.mohawkind.com.