Mohawk 4Q caps big profit upswing in 2007
By Staff -- Home Textiles Today, 2/14/2008 1:17:00 PM
Calhoun, Ga. – Floor coverings supplier Mohawk Industries recorded huge upswings in profits during fiscal 2007, capped by fourth-quarter net earnings of $379.1 million, up 252.6% from $107.5 million in the prior year period.
For the full year ended Dec. 31, 2007, net earnings of $706.8 million were 55.1% higher than the $455.8 million earned in 2006.
Sales were down 5% to $1.807 billion in the quarter, and down 4% to $7.586 billion. The company also managed to cut its debt by $534 million during 2007.
Higher profitability on lower sales was an indication of strategic moves that paid off for Mohawk, including the acquisition of the Columbia wood flooring unit and strong growth of the Dal-Tile and Unilin divisions – which offset a 13% decline in sales by the Mohawk segment.
Mohawk chairman and ceo Jeffrey Lorberbaum credited his U.S. management team for having “handled the many challenges as the flooring market continued its decline.”
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