Dallas, Texas 11/05/2013 (Financialstrend) – The $9.97 billion market capped industrial goods and textile manufacturer Mohawk Industries Inc. (NYSE:MHK) came out with a block buster 3Q results announcement which indicate the company has hit a purple patch with regards to demand pick up for its products in the housing and construction markets both in U.S and its external markets.
It reported a 33% increase in its sales compared to 3QFY12 which resulted in earnings per share increase of a stupendous 94%. Earnings came in at $119 million and earnings per share came in at $1.63 per share.
Jeffrey S. Lorberbaum, who is the Chairman and Chief executive officer of Mohawk Industries, has been quoted as saying, “This quarter we are reporting the highest adjusted EPS in Company history. During the period, higher U.S. volumes, efficiency improvements and the performance of our Pergo, Marazzi and Spano acquisitions supported our strong growth. Our legacy net sales increased approximately 5% as reported, with the balance of our revenue growth derived from our recent acquisitions.”
The increase in the earnings has been ascribed to larger and newer product portfolio driving up sales of home grown products, efficiencies derived from optimized operations in the ‘manufacturing and distribution” space and substantive cost reduction initiatives. The other main contributing factor for the surge is the added revenue brought in from the well timed acquisitions of Pergo and Marazzi operations.
The Ceramic segment led the charge with growth of 84% compared to 3Q12 followed by the “Laminate and Wood segment” which showcased growth of 37% in the same period. With the definite increase in demand from the housing sector as reflected by the strong 3Q growth, the company has upped its earnings guidance for the 4Q. It expects 4Q earnings to come in at $1.66 to $1.75 per share. As of close of business on November 4, the stock was trading at $137.64.