Mohawk Industries boosts profits to record high amid boom in flooring market

photo Melissa Kernea prepares to pick up a load of yarn off of a conveyor belt at Mohawk Industries, Inc. in Dalton, Ga., in this file photo.
photo Jeff Loberbaum of Mohawk Carpets

Mohawk Industries Inc. boosted its net earnings by 21 percent over the year-ago period during the third quarter, achieving the highest earnings per share in the company's history after excluding one-time items.

The Calhoun, Ga.-based carpet and floorcovering manufacturer said today that it earned $151 million, or $2.06 per share, in the three months ended Sept. 30. Excluding unusual charges, net earnings were $179 million, or $2.44 per share - a 21 percent increase over last year's third quarter and the highest quarterly adjusted earnings per share ever for Mohawk. The adjusted net income was 2 cents per share above the average analysts estimate for the quarter.

Net sales for the third quarter of 2014 were $1.99 billion , an increase of 1.5 percent over a year ago and 2 percent on a constant exchange basis. For the third quarter of 2013, net sales were $1.96 billion and net earnings were $119 million, or $1.63 per share. Excluding unusual charges, net earnings a year ago were $147 million, or $2.02 per share.

"During the period, we significantly increased our adjusted operating income by 12 percent compared to last year through productivity enhancements, cost containment and acquisition synergies," Mohawk CEO Jeff Lorberbaum said. "Ongoing initiatives to control our expenses and increase our productivity yielded our highest operating margins in eight years. We delivered good results this period, even in an environment with sluggish demand."

Mohawk has spent $550 million in capital investments so far this year to boost productivity and diversity is products.

Carpet segment net sales for the quarter were $779 million , up 1 percent over last year.

Read more in tomorrow's Times Free Press.

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