The company announced $59,193,000 in net earnings or $1.11 per share. This compares to $39,262,000 in net earnings or EPS of $0.74 for the fourth quarter of 2000. This improvement was the result of increased sales, improved gross profit, reduced selling, general and administrative and interest expenses, and an adjustment to reduce the effective income tax rate for tax credits.
Net sales for the quarter increased 7% to $895,825,000 compared to $837,886,000 for the fourth quarter of 2000. The sales increase was attributable to the sales growth across various product categories.
Net earnings for the year 2001 were $188,592,000 and EPS was $3.55 (15% above last year). These are the highest earnings and EPS ever recorded by Mohawk. This compares to $166,852,000 in net earnings for the year 2000 (before the pre-tax charge of $7,000,000 related to an anti-trust litigation settlement) or EPS of $3.08. After the pre-tax charge, 2000 net earnings were $162,599,000 or EPS of $3.00. This improvement was attributable to increased sales, reduced interest expenses, an adjustment to reduce the effective income tax rate for tax credits and a reduced number of diluted shares outstanding. Net sales for the year of 2001 were $3,445,945,000.
Mohawk anticipates that the first quarter 2002 EPS will be 20% to 30% above 2001 and second quarter 2002 will be 15% to 20% above last year.
During the fourth quarter of 2001, the company changed its accounting for shipping and handling costs. Prior to the fourth quarter those costs were included as a reduction to net sales.