Mohawk 2013 Sales Grow 27%; Ceramic Segment Net Sales Jump 84%
Mohawk Industries Inc. recently announced 2013 fourth quarter net earnings of $95 million. Excluding unusual charges and discontinued operations, net earnings for the fourth quarter 2013 were $131 million, a 77% increase over last year’s fourth quarter adjusted EPS.
Net sales for the fourth quarter of 2013 were approximately $1.9 billion, an increase of 34% vs. the prior year's fourth quarter or 33% on a constant exchange basis. For the fourth quarter of 2012, net sales were approximately $1.4 billion and net earnings were $66 million.
For the 12 months ending December 31, 2013, net sales were approximately $7.3 billion, an increase of approximately 27% compared to the prior year. Net earnings and EPS for the 12 month period were $349 million and $4.82, respectively. Net sales for the year were approximately $5.8 billion.
Ceramic segment net sales for the quarter were $738 million, up 84% compared to the prior year, with reportedly strong growth from the Dal-Tile business and the Marazzi acquisition. During the period, operating margins, excluding unusual charges, grew 320 basis points to 10% of net sales as a result of higher volumes, efficiency gains and improved product mix. In the U.S., the integration of Dal-Tile and Marazzi has been completed, reportedly resulting in new collections with enhanced style and design, as well as improved technologies across the business. In Mexico, the company’s ceramic business is increasing distribution, enhancing product mix and improving margins. In Russia, sales benefited from expanded participation in the new construction and home center channels, supported with unique products and dedicated sales teams. Restructuring the company’s ceramic business in Europe reduced cost structures, improved the sales organization through a geographic realignment and decreased manufacturing complexities.
“Our fourth quarter results were better than projected, primarily as a result of higher top-line growth in our U.S. ceramic business, a strong performance from our Pergo acquisition and lower interest expense due to an upgrade in our credit rating,” said Jeffrey S. Lorberbaum, chairman and CEO. “Our legacy net sales increased approximately 6% as reported, with additional revenue growth from our recent acquisitions. As a result of improved product mix, increased productivity and SG&A management, our adjusted operating income for the quarter rose 260 basis points from last year to approximately 10% of net sales and for the year improved by 250 basis points to 9.4% of net sales. We believe we are well positioned for both revenue and earnings growth in 2014.”
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