Mohawk quarterly report reveals fall in profits and growth in earnings

May 21, 2003

Mohawk quarterly report reveals fall in profits and growth in earnings21/05/2003 - The Mohawk Group, the leading US floor covering materials manufacturer, has reported a fall in profits and growth in earnings. Net earnings in the first quarter of 2003 fell to US $41.6 million from $43.2 million in the first quarter of 2002.

This reduction was primarily the result of lower sales, reduced production levels and higher raw material costs in the Mohawk segment. Net sales for the quarter increased by 25% to more than a billion dollars, compared to $866.7 million in the first quarter of 2002. The net sales increase was attributable to the Dal-Tile acquisition and consequent consolidation of earnings. The first quarter of 2002 included Dal-Tile results for only the seven business days after the acquisition closed on March 20, 2002. Dal-Tile segment net sales of $276,604,000 increased by 5% during the quarter, primarily due to growth in residential products.
The Mohawk segment net sales fell by 4% to $808.1 million. On a proforma basis using the same number of days in first quarter of 2003 and 2002, the Mohawk segment decreased by 2% and the Dal-Tile segment increased by 8%.

Commenting on the financial results of the first quarter, Jeffrey S. Lorberbaum, the Group's President and CEO, said: "I believe we have delivered reasonable results in this difficult economic environment, aggravated by the war in Iraq. Many of our customers are postponing purchases as consumer confidence falls. We believe the present business conditions will improve in the fall of this year."

The in-focus section contains the tables with all the figures for the quarter and a short info sheet on the Mohawk Group.

Go to turnovers of other listed companiesMOHAWK.gifThe Mohawk GroupThe Mohawk Group

The Mohawk Group is a leading manufacturer and distributor of floor coverings of all kinds for the residential and commercial sectors, including carpet, rugs and ceramic tiles. About 30% of the Group's net sales derive from products for hard surfaces.
In 2002 the Group was named number 361 in the list of the Fortune 500 Largest US Corporations, which was an improvement from number 455 in 2001. Additionally the Group was ranked 18th for growth in profits over ten years.
The Mohawk Group manufactures and distributes tiles and natural stone under the Dal-Tile, Mohawk and American Olean trademarks.Statistics of the three-month periodMOHAWK INDUSTRIEtab.PDF