Mohawk Industries, Inc. boosted its net income in the second quarter to a record high of $278 million, or $3.72 per share.
The profit results for the Calhoun, Ga-based floorcovering company were up 7 percent from a year ago and were 12 cents per share ahead of the average forecast for the quarter by industry analysts.
Mohawk, the world's biggest floorcovering manufacturer, said today its sales were up 6 percent to $2.5 billion in the three months ended June 30.
"During the period, Mohawk delivered record results, generating the highest sales, adjusted operating income and adjusted earnings per share in the company's history," Mohawk CEO Jeff Lorberbaum said in a statement today.
Lorberbaum said he expects results to continue to improve in the balance of 2017 from price increases Mohawk is implementing in many of its product lines and from gains realized from the completion this spring of the acquisition of two small ceramic manufacturers to boost European sales and the purchase of two U.S. material manufacturing operations to enhance the vertical integration of Mohawk' business. Mohawk is forecasting third quarter net income from $3.70 to $3.79 per share.
"To enhance our long-term performance, we are investing at record levels this year to expand our product offering and capacity, improve our efficiencies and extend our geographic reach," Lorberbaum said. "In the fourth quarter, we will incur higher start-up costs as our production expansions ramp up and we elevate our marketing activities to increase our sales. The expansion of our LVT, ceramic, laminate, sheet vinyl and carpet tile capacity will increase our future growth and profitability, strengthening our position as the global leader in flooring."
Ahead of the earnings announcement after the market closed, shares of Mohawk dropped today by $1.79 per share, or 0.75 percent per share. So far this year, Mohawk's stock is up 18.1 percent.