Mohawk Industries Inc. (MHK, Financial) filed Quarterly Report for the period ended 2009-09-26.
Mohawk Industries Inc. is one of the leading producers of woven and tufted broadloom carpet and rugs for principally residential applications.The company designs manufactures and markets carpet and rugs in a broad range of colors textures and patterns. The company is widely recognized through its premier brand names some of which are Mohawk Aladdin American Rug Craftsmen American Weavers Bigelow and Custom Weave. Mohawk Industries Inc. has a market cap of $3.18 billion; its shares were traded at around $46.48 with a P/E ratio of 78.9 and P/S ratio of 0.5. Mohawk Industries Inc. had an annual average earning growth of 13.5% over the past 10 years. GuruFocus rated Mohawk Industries Inc. the business predictability rank of 4.5-star.
Dal-Tile Segment - Operating income was $21.2 million (5.9% of segment net sales) in the third quarter of 2009 reflecting an increase of $501.1 million compared to operating loss of $479.9 million for the third quarter of 2008. The increase was primarily driven by the recognition of an impairment of goodwill and other intangibles of $532 million in the third quarter of 2008. In addition, operating income in the current period was impacted by a decline of approximately $30 million due to lower sales volumes, a decline of approximately $9 million due to unfavorable price and product mix and a decrease of approximately $8 million for restructuring charges, partially offset by lower manufacturing and selling, general and administrative costs of approximately $14 million.
Gross profit for the first nine months of 2009 was $890.5 million (22.3% of net sales) and represented a decrease of $491.3 million compared to gross profit of $1,381.8 million (25.9% of net sales) for the prior years first nine months. Gross profit in the current nine months was unfavorably impacted by a decrease of approximately $287 million resulting from a decline in sales volume, a decline of approximately $136 million due to the net effect of price and product mix, a decline of approximately $99 million due to a net increase in warranty requirements described above in the overview, a decrease of approximately $21 million for restructuring charges and a decline of approximately $17 million due to unfavorable foreign exchange rates, partially offset by lower manufacturing costs of approximately $65 million. The decrease in gross profit percentage is primarily attributable to unfavorable price and product mix, partially offset by lower raw material and manufacturing costs.
Operating loss for the first nine months of 2009 was $3.1 million reflecting an improvement of $1,027.6 million compared to operating loss of $1,030.7 million in the first nine months of 2008. The change was primarily driven by the recognition of an impairment of goodwill and other intangibles of $1,418.9 million in the third quarter of 2008. In addition, operating income in the current year was impacted by a decline of approximately $288 million due to lower sales volumes, a decline of approximately $136 million due to the net effect of price and product mix and a decline of approximately $99 million due to a net increase in warranty requirements described above in the overview, partially offset by lower costs of approximately $163 million.
Dal-Tile Segment - Operating income was $72.6 million (6.6% of segment net sales) in the third quarter of 2009 reflecting an increase of $437.4 million compared to operating loss of $364.8 million for the third quarter of 2008. The increase was primarily driven by the recognition of an impairment of goodwill and other intangibles of $532 million in the third quarter of 2008. In addition, operating income in the current year was impacted by a decline of approximately $87 million due to lower sales volumes and a decline of approximately $23 million due to the net effect of price and product mix, partially offset by lower selling general and administrative costs of approximately $13 million and approximately $10 million due to favorable foreign exchange rates.
Unilin Segment - Operating income was $80.6 million (9.7% of segment net sales) in the first nine months of 2009 reflecting an increase of $563.1 million compared to operating loss of $482.5 million for the first nine months of 2008. The increase was primarily driven by the recognition of an impairment of goodwill and other intangibles of $633 million in the third quarter of 2008. In addition, operating income in the current year was impacted by a decline of approximately $69 million due to lower sales volumes, a decline of approximately $58 million due to the net effect of price and product mix, a decrease of approximately $15 million for restructuring charges and a decrease of approximately $11 million due to unfavorable foreign exchange rates, partially offset by lower costs of approximately $84 million.
Read the The complete ReportMHK is in the portfolios of Ruane Cunniff of Ruane & Cunniff & Goldfarb Inc, Wallace Weitz of Weitz Wallace R & Co, John Rogers of ARIEL CAPITAL MANAGEMENT LLC, Ron Baron of Baron Funds, Arnold Van Den Berg of Century Management, Prem Watsa of Fairfax Financial Holdings, Inc..
Mohawk Industries Inc. is one of the leading producers of woven and tufted broadloom carpet and rugs for principally residential applications.The company designs manufactures and markets carpet and rugs in a broad range of colors textures and patterns. The company is widely recognized through its premier brand names some of which are Mohawk Aladdin American Rug Craftsmen American Weavers Bigelow and Custom Weave. Mohawk Industries Inc. has a market cap of $3.18 billion; its shares were traded at around $46.48 with a P/E ratio of 78.9 and P/S ratio of 0.5. Mohawk Industries Inc. had an annual average earning growth of 13.5% over the past 10 years. GuruFocus rated Mohawk Industries Inc. the business predictability rank of 4.5-star.
Highlight of Business Operations:
Gross profit for the third quarter of 2009 was $369.5 million (26.7% of net sales) and represented a decrease of $69.6 million or 15.9% compared to gross profit of $439.1 million (24.9% of net sales) for the prior years third quarter. Gross profit in the current quarter was unfavorably impacted by a decrease of approximately $77 million resulting from a decline in sales volume, a decline of approximately $53 million due to unfavorable price and product mix and a decrease of approximately $6 million for restructuring charges, partially offset by lower manufacturing costs of approximately $55 million. The increase in gross profit percentage is primarily attributable to lower raw material costs and manufacturing costs.Dal-Tile Segment - Operating income was $21.2 million (5.9% of segment net sales) in the third quarter of 2009 reflecting an increase of $501.1 million compared to operating loss of $479.9 million for the third quarter of 2008. The increase was primarily driven by the recognition of an impairment of goodwill and other intangibles of $532 million in the third quarter of 2008. In addition, operating income in the current period was impacted by a decline of approximately $30 million due to lower sales volumes, a decline of approximately $9 million due to unfavorable price and product mix and a decrease of approximately $8 million for restructuring charges, partially offset by lower manufacturing and selling, general and administrative costs of approximately $14 million.
Gross profit for the first nine months of 2009 was $890.5 million (22.3% of net sales) and represented a decrease of $491.3 million compared to gross profit of $1,381.8 million (25.9% of net sales) for the prior years first nine months. Gross profit in the current nine months was unfavorably impacted by a decrease of approximately $287 million resulting from a decline in sales volume, a decline of approximately $136 million due to the net effect of price and product mix, a decline of approximately $99 million due to a net increase in warranty requirements described above in the overview, a decrease of approximately $21 million for restructuring charges and a decline of approximately $17 million due to unfavorable foreign exchange rates, partially offset by lower manufacturing costs of approximately $65 million. The decrease in gross profit percentage is primarily attributable to unfavorable price and product mix, partially offset by lower raw material and manufacturing costs.
Operating loss for the first nine months of 2009 was $3.1 million reflecting an improvement of $1,027.6 million compared to operating loss of $1,030.7 million in the first nine months of 2008. The change was primarily driven by the recognition of an impairment of goodwill and other intangibles of $1,418.9 million in the third quarter of 2008. In addition, operating income in the current year was impacted by a decline of approximately $288 million due to lower sales volumes, a decline of approximately $136 million due to the net effect of price and product mix and a decline of approximately $99 million due to a net increase in warranty requirements described above in the overview, partially offset by lower costs of approximately $163 million.
Dal-Tile Segment - Operating income was $72.6 million (6.6% of segment net sales) in the third quarter of 2009 reflecting an increase of $437.4 million compared to operating loss of $364.8 million for the third quarter of 2008. The increase was primarily driven by the recognition of an impairment of goodwill and other intangibles of $532 million in the third quarter of 2008. In addition, operating income in the current year was impacted by a decline of approximately $87 million due to lower sales volumes and a decline of approximately $23 million due to the net effect of price and product mix, partially offset by lower selling general and administrative costs of approximately $13 million and approximately $10 million due to favorable foreign exchange rates.
Unilin Segment - Operating income was $80.6 million (9.7% of segment net sales) in the first nine months of 2009 reflecting an increase of $563.1 million compared to operating loss of $482.5 million for the first nine months of 2008. The increase was primarily driven by the recognition of an impairment of goodwill and other intangibles of $633 million in the third quarter of 2008. In addition, operating income in the current year was impacted by a decline of approximately $69 million due to lower sales volumes, a decline of approximately $58 million due to the net effect of price and product mix, a decrease of approximately $15 million for restructuring charges and a decrease of approximately $11 million due to unfavorable foreign exchange rates, partially offset by lower costs of approximately $84 million.
Read the The complete ReportMHK is in the portfolios of Ruane Cunniff of Ruane & Cunniff & Goldfarb Inc, Wallace Weitz of Weitz Wallace R & Co, John Rogers of ARIEL CAPITAL MANAGEMENT LLC, Ron Baron of Baron Funds, Arnold Van Den Berg of Century Management, Prem Watsa of Fairfax Financial Holdings, Inc..
