Mohawk earnings jump to record high in quarter
The world’s biggest floorcovering company boosted first quarter profits by 16 percent to a record $201 million, or $2.68 per share.
Mohawk Industries Inc. said Thursday its net earnings, excluding restructuring, acquisition expenses and other charges, totaled $203 million, or $2.72 per share, in the three months ended March 31. That was a penny per share better than the average analysts’ estimate reported by Zacks Equity Research.
Net sales for the first quarter were $2.22 billion, up 2 percent from a year ago and 4 percent better when applying constant days and currency rates.
“Our sales and earnings per share set records for the first quarter with volume, mix and productivity adding approximately $60 million to operating income,” said Jeff Lorberbaum, chief executive of the Calhoun, Ga.-based carpet and vinyl floor maker. “Our first quarter sales grew as expected, with Flooring North America and the rest of the world outpacing global ceramic growth on a constant days and currency basis.”
Mohawk is investing more than $750 million to expand its production in most product categories and is preparing to enter the European carpet tile and countertop markets as well as the Russian sheet vinyl business.
“In April, we completed the acquisition of two small ceramic manufacturers in Europe and a carpet nylon polymerization plant in the U.S.; in May, we anticipate purchasing a mine for our U.S. ceramic operations.” Lorberbaum said “We are initiating many price increases across our portfolio which should cover our material costs in the third quarter.”
Lorberbaum said the company is “optimistic about the economy, the flooring industry and Mohawk’s potential” and he predicts earnings in the second quarter should rise to $3.53 to $3.62 per quarter, including the acquisitions.
Comcast earnings top expectations
Comcast Corp. is reporting first-quarter profit of $2.57 billion. The Philadelphia company said Thursday it had net income of 53 cents per share.
The results topped Wall Street expectations. The average estimate of 17 analysts surveyed by Zacks Investment Research was for earnings of 44 cents per share.
The cable provider posted revenue of $20.46 billion in the period, also beating Wall Street forecasts. Fifteen analysts surveyed by Zacks expected $20.11 billion.
Ford profits decline 35 percent in quarter
DETROIT – Ford’s first-quarter profits sank to $1.6 billion, a 35 percent drop compared to the same period a year ago, as higher costs for warranties, recalls and materials – not to mention falling industry sales in the U.S. – eroded profits.
During the first quarter last year, the Dearborn, Mich., automaker earned a profit of $2.4 billion, its best ever.
Ford earned 39 cents per share, which compares favorably with the 36 cents per share Wall Street analysts, on average, expected the automaker to earn.
Bob Shanks, Ford’s chief financial officer, said the company’s performance came in higher than forecasted because sales in North America and two other regions were slightly better than expected. The automaker had already warned investors that its first-quarter profit would fall significantly.
Microsoft beats forecast with $4.8 billion profit
Microsoft Corp. on Thursday reported fiscal third-quarter earnings of $4.8 billion.
On a per-share basis, the Redmond, Wash.-based company said it had a profit of 61 cents. Earnings, adjusted for non-recurring costs, came to 73 cents per share.
The results exceeded Wall Street expectations. The average estimate of 15 analysts surveyed by Zacks Investment Research was for earnings of 69 cents per share.
The software maker posted revenue of $22.09 billion in the period. Its adjusted revenue was $23.56 billion, which also topped Wall Street forecasts. Nine analysts surveyed by Zacks expected $23.55 billion.