CALHOUN, GA - Mohawk Industries Inc., an international manufacturer and supplier of flooring products, reported net earnings of $41 million on sales of $1.4 billion for the first quarter ended March 31, 2012.
Mohawk's Q1 profit increased 67% and sales were up 5% compared to Q1 2011.
The company's Unilin segment, which includes wood laminate flooring, paneling and roofing products contributed adjusted net sales of $11.9 million on net sales of $337.4 million.
Jeffrey Lorberbaum, chairman and CEO of Mohawk Industries, said, "Volume increases, price increases, cost reductions and lower interest expense contributed to our earnings growth in the quarter. In March, Standard & Poor's upgraded our credit rating and Moody's elevated our outlook to positive, reducing the interest rate on our notes. In April, we paid our 2012 maturing notes using our bank revolver which has lower interest rates. Our balance sheet remains strong with net debt to adjusted EBITDA at 2.2 times and approximately $500 million available for strategic opportunities, after the payment of the 2012 notes."
Looking ahead, Mohawk said it expects to sustain growth premised on low mortgage rates, increasing home sales, and higher employment.
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