Mohawk Industries, Inc. boosted its third quarter net earnings by 25 percent over a year ago to a record $270 million, or $3.62 per share, as the world’s biggest floorcovering manufacturer improved both its sales and margins in the past three months.
“Today, Mohawk is in the best position in the company’s history,” company CEO Jeff Lorberbaum said in a statement today. “We are currently exploring numerous investment options to further our expansion, including green field opportunities and acquisitions to broaden our geographic presence and product portfolio.”
The Callhoun, Ga.-based floor covering company said today that net sales were up 7 percent compared with a year ago to $2.3 billion. Company profits, excluding restructuring, acquisition and other charges, were up 17 percent from a year ago to $261 million, or $3.50 per share In the same period a year ago,
Mohawk results were 4 cents per share above the $3.46 per share forecast by industry analysts surveyed by Thomson Reuters. Analysts’ estimates typically exclude special items.
“During the period, our growth strengthened, and our margins continue to expand compared to the last year,” Lorberbaum said. “Our strategy of investing in our existing business as well as synergistic acquisitions continues to deliver record results. Our earnings per share for the period were an all-time record for the company, marking the tenth consecutive quarter that Mohawk has delivered a year-over-year record quarterly earnings per share.”
Lorberbam predicts the company will boost fourth quarter profits from 12 to 15 percent over a year ago, raising per share earnings for the period to between $3.12 and $3.25.
Lorberbaum said operating margins rose to an all-time high in the third quarter and for many of its products Mohawk is now running at or near capacity.
“We are currently selling all of the LVT (luxury vinyl tile) we are manufacturing even as we continue to increase our production capacity in the U.S. and Europe,” the Mohawk CEO said. “To meet our growing customer demand, our capital investments this year will be the highest in our history with almost $650 million allocated to additional capacity, more efficient assets and new products.”