Mohawk 3Q net income up 69 pct on acquisitions

Mohawk 3Q profit and 4Q guidance top Wall Street expectations; acquisitions help

Associated Press

NEWS: Flooring maker Mohawk Industries Inc. said its third-quarter net income jumped 69 percent as it benefited from acquisitions of new lines of flooring such as Pergo, Marazzi and Spano.

DETAILS: Without the acquisitions, revenue would have grown about 5 percent, the company said. With them, revenue grew 33 percent.

Ceramic sales jumped 84 percent to $767 million after Mohawk acquired the Marazzi tiling line. The company also raised prices as much as 4 percent in North America in August to cover rising energy and transportation costs.

NUMBERS: The Calhoun, Ga.-based company earned $119.1 million, or $1.63 per share, for the quarter that ended Sept. 30. During the same period a year earlier it earned $70.3 million, or $1.01 per share. It would have earned $2.02 per share if not for one-time charges. Revenue rose to $1.96 billion, from $1.47 billion a year earlier. Analysts surveyed by FactSet had been expecting a profit of $1.91 per share on revenue of $2.02 billion.

FUTURE: Mohawk predicted fourth-quarter earnings of $1.66 to $1.75 per share, not counting restructuring or acquisition costs. Analysts were expecting $1.61.

STOCK: Shares had fallen 50 cents to close at $132.42 before the results were released. They rose $3.58, or 2.7 percent, to $136 in after-hours trading.

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