Despite increased costs for raw materials and a consumer market reluctant to invest in remodeling projects, Mohawk Industries (Calhoun, Ga.) reported third quarter net earnings of $46.6 million (68 cents per share) on $1.4 billion in net sales.
Despite increased costs for raw materials and a consumer market reluctant to invest in remodeling projects, Mohawk Industries (Calhoun, Ga.) reported third quarter net earnings of $46.6 million (68 cents per share) on $1.4 billion in net sales.
The net sales figure was a 10.0 percent improvement over the $1.3 billion reported in the third quarter of 2010; however, net earnings during the latest quarter fell 8.8 percent from $51.1 (74 cents per share) in the third quarter of 2010.
"Sales in both the residential and commercial categories expanded, with commercial renovation leading the growth and new residential continuing to lag. Each segment continues to lower costs with new processes, reduced infrastructure and investment in more efficient assets," said Jeffrey Lorberbaum, Mohawk's Chairman and CEO.
For the first nine months of 2011, Mohawk's net sales were $4.3 billion, an increase of approximately 5 percent from 2010; net earnings were $131.0 million ($1.90 per share), down 6.2 percent from $139.7 million ($1.99 per share).
Looking ahead, Mohawk anticipates increasing third-quarter raw material costs to affect its fourth-quarter earnings. The company will also consider further price increases and implement additional cost reductions to improve the business. Considering all this, the company said it will earn approximately 67 to 76 cents per share next quarter.