Mohawk Industries Inc. Reports Operating Results (10-K)
Mohawk Industries Inc. has a market cap of $3.99 billion; its shares were traded at around $58.11 with a P/E ratio of 23.1 and P/S ratio of 0.7. Hedge Fund Gurus that owns MHK: Bruce Kovner of Caxton Associates, Steven Cohen of SAC Capital Advisors. Mutual Fund and Other Gurus that owns MHK: Ruane Cunniff of Ruane & Cunniff & Goldfarb Inc, John Rogers of Ariel Capital Management, Wallace Weitz of Weitz Wallace R & Co, Ron Baron of Baron Funds, Chuck Royce of Royce& Associates, Jeremy Grantham of GMO LLC, Prem Watsa of Fairfax Financial Holdings, Inc..
Highlight of Business Operations: (55%), resilient and rubber (12%), ceramic tile (11%), hardwood (11%), stone (6%) and laminate (5%). Each of these categories are influenced by the average selling price per square foot, the residential builder and homeowner remodeling markets, housing starts and housing resales, average house size and home ownership. In addition, the level of sales in the floor covering industry, both in the U.S. and Europe, is influenced by consumer confidence, spending for durable goods, interest rates and availability of credit, turnover in housing, the condition of the residential and commercial construction industries and the overall strength of the economy. The U.S. floor covering industry experienced declining demand beginning in the fourth quarter of 2006 that worsened during the latter parts of 2008, and continued to decline in 2009. In the first half of 2010 demand showed signs of recovering, but first half gains were lost in the second half of the year. Overall industry conditions in the U.S. are expected to improve during 2011, although the timing and size of a sustained recovery within the market remains uncertain.
Domestic carpet and rug sales volume of U.S. manufacturers was approximately 1.2 billion square yards, or $9.3 billion, in 2009. The carpet and rugs category has two primary markets, residential and commercial. In 2009, the residential market made up approximately 69% of industry amounts shipped and the commercial market comprised approximately 31%. Of the total residential market, 73% of the dollar values of shipments are made in response to residential replacement demand.
The U.S. ceramic tile industry shipped 1.8 billion square feet, or $1.9 billion, in 2009. The ceramic tile industrys two primary markets, residential applications and commercial applications, represent 58% and 42% of the 2009 industry total, respectively. Of the total residential market, 55% of the dollar values of shipments are made in response to residential replacement demand.
In 2009, the U.S. laminate industry shipped 0.9 billion square feet, or $0.9 billion. The laminate industrys two primary markets, residential applications and commercial applications, represent 88% and 12% of the 2009 industry total, respectively. Sales of U.S. laminate flooring are primarily distributed through the residential replacement market. In 2009, the European laminate industry produced approximately 5.0 billion square feet which accounted for approximately 15% of the European floor covering market.
In 2009, the U.S. hardwood industry shipped 0.8 billion square feet, representing a market of approximately $1.8 billion. The hardwood industrys two primary markets, residential applications and commercial applications, represent 80% and 20% of the 2009 industry total, respectively. Sales of U.S. hardwood are primarily distributed to the residential market for both new construction and residential replacement.
During 2010, no single customer accounted for more than 5% of total net sales, and the top ten customers accounted for less than 20% of the Companys net sales. The Company believes the loss of one major customer would not have a material adverse effect on its business.
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