Business Briefs: Mohawk Industries boosts quarterly profits

Business Briefs: Mohawk Industries boosts quarterly profits

May 2nd, 2014 by Associated Press and Staff Report in Business Around the Region

Jeff Lorberbaum, chairman and chief executive officer of Calhoun, Ga.-based Mohawk Industries, announces that the company will build an $180 million plant in Dickson County, Tenn., in this file picture.

Jeff Lorberbaum, chairman and chief executive officer of...

Photo by Contributed Photo /Times Free Press.

Mohawk boosts quarterly profits

Mohawk Industries Inc., boosted its first quarter earnings, excluding unusual charges, by 41 percent over last year to $90 million, or $1.23 per share. The results announced Thursday were 5 cents per share ahead of analysts expectations for the Calhoun, Ga.-based floorcovering manufacturer even though Mohawk's $1.8 billion in sales were slightly below what analysts had projected due to adverse winter weather.

Mohawk sales rose 22 percent over last year, boosted by acquisitions made during 2013. The company said it expects to boost 2014 profits to between $8 and $8.30 per share, up from $4.82 per share last year.

"We are planning to increase capital investments across the enterprise to an all-time high of $500 million to support the introduction of innovative products, to sustain our growth with increased manufacturing capacity and to drive productivity," Mohawk CEO Jeff Lorberbaum said.


Mortgage rates decline again

Average U.S. rates on fixed mortgages declined slightly this week as the spring home-buying season has gotten off to a slow start.

Mortgage buyer Freddie Mac said Thursday the average rate for the 30-year loan eased to 4.29 percent from 4.33 percent last week. The average for the 15-year mortgage ticked down to 3.38 percent from 3.39 percent.