Mohawk Earnings and Sales Off 4% in Second Quarter

July 19, 2007  by in UnCategorized   

By Home Furnishings Business in on July 2007 Mohawk Inds. reported net earnings for the second quarter ended June 30 of $115 million, a 4 percent decline from $119.5 million during the same quarter last year.

Net sales for the quarter were $1.97 billion, 4 percent off from the $2.06 billion reported in the same quarter last year. During the quarter, the company paid off $208 million in debt, reducing Mohawk’s debt-to-capital ration to 38 percent.

For the first half of 2007, the company’s net earnings were $206 million, and sales for the first half of the year were $3.84 billion, a 4 percent decline from the $3.98 billion posted in the first six months of last year.

The company attributed the sales decreases for the quarter and year-to-date to slowing U.S. industry demand in residential new construction and redecorating business.

“Second-quarter earnings were ahead of our guidance for the quarter,” said Jeffrey S. Lorberbaum, chairman and chief executive officer. “The European business maintained its strong growth and performance partially offsetting the cyclical down turn in the U.S. Our U.S. commercial business continued performing better than our residential business. U.S. residential flooring is in a cyclical downturn with soft sales in the new home and consumer redecorating categories. During the quarter, Mohawk took another important step in its strategy to become a complete provider of floor covering with the announced acquisition of four wood manufacturing plants.”