Ceramic Industry

Mohawk Announces Second Quarter Results; Dal-Tile Sales Increase Over 4%

August 15, 2011

Mohawk Industries Inc. recently announced 2011 second quarter net earnings of $61 million. Excluding restructuring charges, net earnings were $66 million. For the second quarter of 2010, net earnings were $68 million. Excluding non-recurring tax benefits, redemption premium on bonds and restructuring charges, net earnings were $53 million. Net sales for the second quarter of 2011 were $1.5 billion, an increase of 6% as reported and 3% with a constant exchange rate.

For the six months ended July 2, 2011, net sales were $2.8 billion, an increase of approximately 3% as reported and 2% with a constant exchange rate. For the six-month period, net earnings were $84 million. For the six months ended July 3, 2010, net earnings were $89 million.

The Dal-Tile segment’s net sales grew more than 4% in the 2011 second quarter, with commercial sales growth exceeding residential. Sales in all channels grew over the prior year, as the company reportedly outperformed the overall market. Higher product prices and fuel surcharges were implemented in the period to recover rising transportation costs. The company’s market share has improved as well. A merchandised ceramic tile shop was introduced, as well as a new installation warranty to differentiate Dal-Tile products. Reveal Imaging technology is being expanded throughout the company’s manufacturing operations.

“All of our businesses reported year-over-year sales growth and our operating margin improved to 7.3%, an increase of 50 basis points over last year, excluding restructuring charges,” said Jeffrey S. Lorberbaum, chairman and CEO. “This is our highest operating margin since 2008 as a result of continuing cost reductions, selling price increases and productivity gains throughout the enterprise. U.S. economic growth was lower than expected in the second quarter, with the U.S. residential business remaining soft and the commercial business continuing to grow.”

For more information, visit www.daltile.com or www.mohawkind.com.