Mohawk Industries boosted its first-quarter earnings by more than 38 percent from a year ago as the world's biggest floorcovering manufacturer continued to report gains in carpet and ceramic sales.
The Calhoun, Ga.-based flooring manufacturer said Thursday it earned $22.3 million, or 30 cents per share. Net earnings, adjusted for nonrecurring costs and restructuring expenses, totaled a record first-quarter high $125 million, or $1.70 earnings per share. That was 10 cents per share above the average estimate of seven analysts surveyed by Zacks Investment Research.
Mohawk's total sales for the first-quarter of this year were strong, coming in at $1.9 billion.
"Throughout the business, we are introducing new products across all categories that are being well received in their markets, generating sales growth and increasing margins," said Jeff Lorberbaum, chairman and CEO of Mohawk, in Thursday's report.
The company saw $739 million in net sales in its carpet segment in the quarter, an approximate 10 percent increase over the same period last year.
Ceramic product net sales in the quarter pulled $720 million, an approximate 4 percent increase over last year.
Laminate and wood product net sales were slightly down from the same period a year ago, producing $448 million, about 4 percent less than first quarter of 2014.
But speaking to the overall health of Mohawk's first-quarter showing, Lorberbaum said in Thursday's report that "we were pleased with our progress during the first quarter," and officials look to an improving national economy -- with a stronger flooring market -- and expect both to "benefit our business for the remainder of the year."
Increased home values and low interest rates are also expected to benefit the company, he said.
Lorberbaum estimated up to $2.50 to $2.60 gains per share in the second quarter of the year, excluding "any earnings from new acquisitions or any restructuring charges."
Company officials estimate Mohawk's acquisition of IVC Group and Kai Group to add between six- and eight-cent-per-share earnings next quarter.
Kemp Harr, publisher of Floor Focus magazine, said Mohawk's increase in carpet sales were well above the industry as a whole.
"Those are good results," he said.
Shares of Mohawk stock have climbed 30 percent over the past year and 15 percent since the start of 2014. Mohawk shares rose another 2.1 percent Thursday, or $3.72 per share, to close at $179.19. in trading on the New York Stock Exchange.
Contact staff writer Alex Green at email@example.com or 423-757-6480.