Mohawk Industries, Inc. has announced diluted earnings per share (EPS) and net earnings for the third quarter of 2004 of $1.67 (23 percent above last year) and $112,687,000 (23 percent above last year), respectively. This compares to EPS and net earnings of $1.36 and $91,382,000, respectively, for the third quarter of 2003.
The improvement in EPS results from strong sales growth in both the Mohawk and Dal-Tile segments, improved manufacturing efficiencies, higher absorption of manufacturing fixed costs, better leverage of selling, general and administrative costs and the Lees Carpet acquisition, offset by higher raw material and energy costs. Net sales for the quarter increased 17 percent to $1,531,151,000 compared to $1,303,166,000 for the third quarter of 2003. The sales increase was primarily due to organic growth in both segments and the Lees acquisition, which positively impacted sales by 5 percent. The Mohawk segment net sales of $1,130,922,000 in the third quarter of 2004 increased 17 percent from $967,405,000 due to growth in all products as a result of economic conditions and the Lees acquisition. The Dal-Tile segment net sales of $400,229,000 in the third quarter of 2004 grew 19 percent from $335,761,000 primarily from internal growth.