Mohawk Industries Profit Surges - Update

(RTTNews) - Mohawk Industries Inc. (MHK) Thursday reported a surge in profit for the third quarter, as the floor-covering and carpet maker's revenues grew 33 percent on higher volumes and acquisitions. Earnings for the quarter came in ahead of Wall Street's estimates, while revenues fell short of expectations.

Calhoun, Georgia-based Mohawk Industries' third-quarter profit soared to $119.1 million or $1.63 per share from $70.3 million or $1.01 per share last year.

Adjusted earnings rose to $2.02 per share from $1.04 per share last year. On average, 13 analysts polled by Thomson Reuters expected a profit of $1.90 per share for the quarter. Analysts' estimates typically exclude special items.

Mohawk's sales surged to $1.96 billion from $1.47 billion last year. Analysts expected revenues of $2.02 billion for the quarter.

According to Chief Executive Jeffrey Lorberbaum, strong results were driven largely by higher U.S. volumes, efficiency improvements and better performance from its Pergo, Marazzi and Spano acquisitions.

Carpet segment sales for the quarter rose 3 percent to $773 million from last year, on stronger demand from residential new construction and remodeling.

Ceramic segment sales surged 84 percent to $767 million, driven by strong performance from both the legacy Dal-Tile business and Marazzi acquisition.

Laminate and wood segment jumped 37 percent to $451 million, driven mainly by the acquisitions of Pergo and Spano and strong sales in North America.

Going ahead, the company expects fourth-quarter earnings of $1.66 to $1.75 per share, excluding any restructuring or acquisition costs. Analysts currently estimate earnings of $1.61 per share for the quarter.

MHK closed Thursday's regular trade at $132.42, down $0.50 or 0.38%, on the NYSE. The stock however gained $3.58 or 2.70% in after-hours trade.