Mohawk Ind confirms admirable Dal-Tile performance during Q2
21 Jul '05
5 min read
Net sales for the first half of 2005 were $3,117,914,000, representing an 8% increase over the first half of 2004 sales of $2,875,622,000. This sales growth was attributable to price increases and internal growth.
In commenting on the first quarter results, Jeffrey S. Lorberbaum, Chairman and CEO, stated, "Mohawk turned in another strong performance for the quarter. I am especially pleased with the excellent Dal-Tile performance which continues to exceed their expectations."
The 15.8% operating margin is one of the highest recorded. Investments in Dal-Tile including the expansion of their manufacturing plants in Muskogee and Mexico, adding distribution points and opening new design galleries are continuing as planned.
This should support continued growth in the ceramic tile business and increase capacity to satisfy their customers' requirements.
The Mohawk segment also reported good results for the quarter with both the commercial and residential new construction business expanding as demand remains strong. They continue to broaden their carpet tile offerings through their Lees and Mohawk brands.
Carpet tile is a growing category among designers and architects. Retail replacement business was soft during the quarter as a result of fewer consumers shopping in retail stores.
Sales of home products are still under pressure as they have exited some marginal products and some customers have reduced their inventory levels. The profitability is in line with the Mohawk segment and are investigating alternatives to maximize their business.
marketing@alchempro.com
