Mohawk Industries Inc. announces record fourth quarter and year net earnings

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.