In the News – Mohawk Industries Reports Record Q4 And Full Year Results
Mohawk Industries, Inc. (NYSE: MHK) today announced 2016 fourth quarter record net earnings of $234 million and diluted earnings per share (EPS) of $3.13, a 22% increase versus prior year. Excluding restructuring, acquisition expenses and other charges, net earnings were $243 million, and EPS was $3.26, a 16% increase over last year’s fourth quarter adjusted EPS. Net sales for the fourth quarter of 2016 were $2.2 billion, up 9% versus the prior year’s fourth quarter as reported and 7% on a legacy basis applying constant days and currency rates. For the fourth quarter of 2015, net sales were $2.0 billion, net earnings were $192 million and EPS was $2.57; excluding restructuring, acquisition and other charges, net earnings were $210 million and EPS was $2.82.
For the twelve months ending December 31, 2016, net earnings and EPS were $930 million and $12.48, respectively. Net earnings excluding restructuring, acquisition expenses and other charges were $940 million, and EPS was $12.61, an increase of 24% over the twelve-month period adjusted EPS result in 2015. For the twelve-month period, net sales were $9.0 billion, an increase of 11% versus prior year as reported and 5.5% on a legacy basis applying constant currency rates. For the twelve-month period ending December 31, 2015, net sales were $8.1 billion, net earnings were $615 million and EPS was $8.31; excluding restructuring, acquisition expenses and other charges, net earnings and EPS were $756 million and $10.20.
Commenting on Mohawk Industries’ fourth quarter and full year performance, Jeffrey S. Lorberbaum, Chairman and CEO, stated, “In the fourth quarter, our sales and earnings per share set records for the period. Our operating margin for the quarter rose to 14.0%, a 150 basis point improvement over the prior year and the highest fourth quarter result in the company’s history.
“For the full year, Mohawk delivered an outstanding performance. Our revenues for the year rose to an all-time high, our EBITDA increased to $1.7 billion and we generated adjusted operating income of $1.3 billion, up 24% over the prior year, the highest in our history. In 2016, our capital investments were our most ever at approximately $670 million. In 2016 alone, process improvements from new methods, product re-engineering and equipment upgrades have increased our productivity by $140 million. To continue our growth, we will make even greater internal investments this year to expand capacity and enter new markets. We are also adding unique capabilities to introduce more differentiated products and anticipate even higher productivity improvements in the coming year.
“For the quarter, our Global Ceramic Segment sales increased 5% as reported and on a constant days and currency basis. Operating income for the segment rose approximately 17% as reported to an operating margin of 14%. Sales in our North American ceramic business improved with new construction, commercial and home center channels outperforming. Our new larger sizes, contemporary shapes and proprietary Reveal Imaging are enhancing our styling and sales growth. Our greenfield ceramic plant in Tennessee became fully operational in the period and should reach planned efficiency levels in the first quarter. We are introducing higher value products at the facility to improve the product mix in the plant. In Mexico, our sales grew significantly but will be constrained until our Salamanca expansion is completed later this year. In the U.S. and Mexico, we have announced price increases on selected products to offset inflation in labor, energy and materials. Our European ceramic sales and margins improved as we enhanced our product offering and style leadership. In Russia, we continue to outperform the market as we bring leading global design to the region. We are installing additional capacity to support the expected expansion of the Russian economy.
Read the full article at Mohawk