Mohawk Industries on Thursday announced a profit for 2009’s fourth quarter of $20 million, or 29 cents per share, including a $30 million restructuring charge.
Without the restructuring charge, net earnings were $39 million, or 56 cents per share, beating analyst expectations of 34 cents per share.
The Calhoun, Ga.-based carpet and flooring company had net sales in the fourth quarter of $1.3 billion, down about 9 percent from 2008, the company said.
“Our fourth-quarter earnings exceeded expectations due to the implementation of cost savings efforts, personnel reductions and plant consolidations,” Chairman and CEO Jeffrey Lorberbaum said.
While Mohawk sales fell in the quarter, the company said it still outshone the rest of the industry, and plans a price increase for the first quarter of this year to help pay for rising raw material costs.
“All our segments have reduced infrastructure and capacity and improved productivity,” said Mr. Loberbaum. “In spite of the very difficult environment, we are strategically positioning our company for growth.”
He added that the company has $500 million in cash and a debt-to-capital ratio of 26 percent.
Mohawk’s shares closed at $47.78, up 44 cents, or 0.93 percent.
For all of 2009, Mohawk had losses of $5 million, or 8 cents per share, less than the $1.46 billion, or $21.32 per share, it lost in 2008.
Kemp Harr, publisher of Floor Focus Magazine, said the report showed Mohawk is in a strong position.
All our segments have reduced infrastructure and capacity and improved productivityJeff Lorberbaum,chairman and CEO
“I think the fact that they started working earlier than others in cutting costs, they may have been a little ahead of the curve,” Mr. Harr said. “I’d say that we’re all glad 2009’s behind us, and the fact that they got out of 2009 and did better than the market is good.”
The company said it expects residential sales to improve in 2010 while commercial sales “still face significant headwinds,” according to a press release. The release further stated that the company expects earnings of between 10 and 20 cents per share in the first quarter, excluding restructuring charges.