Mohawk Industries Inc. announced record net earnings and diluted earnings per share (EPS) for the fourth quarter of 2002 with $84,201,000 (42 percent above last year) in net earnings or $1.25 per share (13 percent above last year). These are the highest quarterly earnings and EPS ever recorded by the company.

This compares to $59,193,000 in net earnings or EPS of $1.11 for the fourth quarter of 2001. This improvement is attributable to the Dal-Tile merger, internal growth of Mohawk products, manufacturing cost improvements and efficiencies in selling, general and administrative costs, according to Mohawk.

Net sales for the quarter increased 34 percent to $1,203,476,000 compared to $895,798,000 for the fourth quarter of 2001. The sales increase was attributable to the Dal-Tile merger, one additional day in the current quarter and internal growth of Mohawk products.

Total net sales for the fourth quarter increased 5 percent, including Dal-Tile on a proforma basis. The Mohawk segment net sales of $919,951,000 grew 2 percent excluding the one additional day, primarily from hard surface products. The Dal-Tile segment net sales of $283,525,000 grew 9 percent (excluding the one additional day) on a proforma basis primarily from growth in residential products.

Net earnings for the year 2002 were $284,489,000 (51 percent above last year) and EPS was $4.39 (24 percent above last year). These are the highest earnings and EPS ever recorded by Mohawk. This compares to $188,592,000 in net earnings for the year 2001 or EPS of $3.55. This improvement was attributable to the Dal-Tile merger, internal growth of Mohawk products, manufacturing cost improvements and efficiencies in selling, general and administrative costs.

Net sales for the year 2002 were $4,522,336,000 representing a 31 percent increase over 2001 net sales of $3,445,945,000. The Mohawk segment net sales of $3,624,156,000 grew 5 percent compared to last year. The Dal-Tile segment proforma net sales of $1,134,225,000 grew 9 percent compared to 2001 sales ($1,036,794,000). The total company net sales for the year increased 6 percent, including Dal-Tile on a proforma basis.

The majority of Dal-Tile's first quarter 2002 results are not included in Mohawk's 2002 first quarter since the acquisition of Dal-Tile was not completed until March 20, 2002. The 2002 first quarter Dal-Tile net sales and operating income up to March 20, 2002 were $236,045,000 and $31,804,000, respectively.