Net earnings in the second quarter of 2011 for Mohawk Industries Inc. (Calhoun, Ga.) were $61 million, compared with $68 million in the second quarter of 2010. Its second quarter diluted earnings per share (EPS) was $0.88, down from $0.95 in the same quarter in 2010. Excluding restructuring charges, net earnings were $66 million and the EPS was $0.95. Net sales in the second quarter were $1.5 billion-an increase of 6%, or 3% with a constant exchange rate.
The company said that its wood sales continue to expand due to an improved product mix and that its wood plants have increased their productivity, yields and flexibility. It also noted that it is growing its Russian customer base to support a new plant under construction near Moscow and that the consolidation and expansion of its Malaysian wood manufacturing operations should be complete by the first quarter of 2012.
Jeffrey S. Lorberbaum, Chairman and CEO stated, "All of our businesses reported year-over-year sales growth, and our operating margin improved to 7.3%, an increase of 50 basis points over last year excluding restructuring charges. This is our highest operating margin since 2008 as a result of continuing cost reductions, selling price increases and productivity gains throughout the enterprise. U.S. economic growth was lower than expected in the second quarter, with the U.S. residential business remaining soft and the commercial business continuing to grow."
