Mohawk 2017 Profits Up 8 Percent

Mohawk Industries Inc.’s (Calhoun, Ga.) 2017 net earnings were $972 million with earnings per share of $12.98, while adjusted net earnings and EPS were $1,019 million and $13.61, excluding restructuring, acquisition and other charges—an 8% percent increase over 2016. Net sales in 2017 were $9.5 billion, an increase of 6 percent.

"In 2017, our strong organization and long-term strategies allowed Mohawk to deliver record-breaking results,” said Jeffrey S. Lorberbaum, chairman and CEO, in a statement. “For the full year, we generated operating income of $1.4 billion, up 6 percent as reported and 9 percent excluding restructuring, acquisition and other charges, and our EBITDA rose to $1.8 billion, both records.”

Lorberbaum cited some key factors in the company’s success in 2017. “During the year, we identified opportunities for growing our business, differentiating our products and improving our productivity, which we supported with over $900 million in internal investments, the highest in company history,” he said.

2017 fourth quarter net earnings were $240 million with diluted EPS of $3.21. Adjusted net earnings were $256 million with EPS of $3.42, excluding restructuring, acquisition and other charges, a 5 percent increase over 2016. Net sales for the fourth quarter of 2017 were $2.4 billion, up 8.5% in the quarter and 6% on a constant days and currency basis.

For the quarter, the Flooring North America Segment's sales increased 3 percent as reported. The segment's margins increased approximately 130 basis points as reported while absorbing $10 million of restructuring costs and $2.5 million of start-up costs associated with the company’s new LVT line. The company recently combined its hard and soft surface residential sales management.

The full results can be seen here.