Mohawk Industries Inc. said Thursday its second quarter earnings rose 22 percent above year ago levels to a record high of $199 million, or $2.69 per share, excluding unusual charges.
The results beat Wall Street expectations. The average estimate of six analysts surveyed by Zacks Investment Research was for earnings of $2.61 per share.
Mohawk CEO Jeff Lorberbaum said the floorcovering company is benefiting from its acquisitions and realignment, although currency fluctuations did hurt U.S. dollar profits for the Calhoun, Ga.,-based company.
"During the third quarter, we anticipate that U.S. sales and margins in all of our product categories will improve over last year," Lorberbaum said in an earnings report released after the market closed Thursday. "Though foreign currency is creating significant headwinds, most of our markets are improving and we are growing on a local basis."
Mohawk posted revenue of $2.04 billion in the second quarter, missing Street forecasts. Six analysts surveyed by Zacks expected $2.14 billion.
Mohawk Industries shares have climbed 27 percent since the beginning of the year, while the Standard & Poor's 500 index has climbed slightly more than 1 percent. Mohawk shares are up a whopping 52 percent in the last 12 months.
For the six months ending July 4, 2015, net sales for Mohawk totaled $3.92 billion, an increase of approximately 2 percent from a year ago and a 9 percent gain on a constant currency exchange rate basis.
In May, Mohawk completed the purchase of KAI, giving the company the leading position in the Bulgarian and Romanian ceramic markets; and in mid-June, Mohawk completed its purchase of IVC, providing the company the leading positions in luxury vinyl tile and sheet vinyl on both sides of the Atlantic.
"We expect to gain synergies through enhanced customer relationships, better utilization of our assets and distribution systems and the implementation of best practices," Lorberbaum said. "Our business is benefiting from years of thoughtful investments in new equipment and acquisitions. In addition to being the world's largest flooring manufacturer, we have the most comprehensive product portfolio with the best brands and assets. Looking ahead, we anticipate the U.S. economy will continue to improve, strengthening both the residential and commercial flooring markets."