Mohawk Third Quarter Net Sales Jump 33%; Ceramic Segment Sales Leap 84%
Mohawk Industries Inc. recently announced 2013 third quarter net earnings of $119 million. Excluding unusual charges, net earnings were $147 million and EPS was $2.02, a 94% increase over last year’s third quarter adjusted EPS. Net sales for the third quarter of 2013 were approximately $2 billion, an increase of 33% vs. the prior year’s third quarter net sales of $1.5 billion.
Ceramic segment net sales were $767 million, up 84% over last year, with strong results reported from both the legacy Dal-Tile business and the Marazzi acquisition. North American sales rose in the low teens with strong performances in the specialty retail, home center, builder, and commercial channels, and Mexican sales that outpaced the market. A 2-4% North American price increase was implemented in August to offset higher energy and transportation costs. The company’s Russian ceramic sales reportedly outperformed the overall market and gained share due to the success of new product introductions, as well as strength in the new construction and franchised retail channels. European ceramic sales increased in Eastern Europe, the Middle East and the Far East, offsetting soft conditions in Western Europe.
“This quarter we are reporting the highest adjusted EPS in company history,” said Jeffrey S. Lorberbaum, chairman and CEO. “During the period, higher U.S. volumes, efficiency improvements and the performance of our Pergo, Marazzi and Spano acquisitions supported our strong growth. Our legacy net sales increased approximately 5% as reported, with the balance of our revenue growth derived from our recent acquisitions. Our adjusted operating income improved 350 basis points over the prior year to approximately 11% of sales as a result of enhanced product mix from innovative new collections, improved manufacturing and distribution efficiencies and the implementation of new systems and processes.”
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