Mohawk turns in record EPS for Q4, year but warns of weakness ahead

CALHOUN, Ga. -- Mohawk Industries Inc. reported that diluted earnings per share (EPS) came in at a fourth quarter record of 74 cents -- 6% above last year -- or $39.26 million in net earnings. This compares to EPS of 70 cents per share or $40.16 million in net earnings for the fourth quarter of 1999.

Mohawk said the improvement in EPS was the result of higher sales and gross profits, and the company's stock repurchase program. Net sales for the quarter increased 3% to $799.44 million compared to $775.55 million for the fourth quarter of 1999. The sales increase was primarily attributable to internal growth. The gross profit improvement was the result of favorable product mix and the change in the depreciable lives of fixed assets as of the beginning of the year 2000. This improved profitability was partially offset by higher raw material and fuel costs as compared to 1999, the company added.