CALHOUN, Ga.-With sales receiving a major boost from acquisitions, Mohawk Industries posted a 42.6 percent gain in net income for its fourth quarter, to $94.7 million, bringing net income for the fiscal year ending on Dec. 31 to $348.8 million, up 39.4 percent.
Net sales in the quarter increased 34 percent to $1.9 billion, and for the year totaled $7.3 billion, up 27 percent. Jeffrey Lorberbaum, Mohawk’s chairman and CEO, attributed the sales gains to an increase in top-line growth from the company’s ceramic and laminate flooring businesses. Both segments benefited from acquisitions completed in 2013—Marazzi in ceramics, Pergo and Spano in laminate flooring. Sales in the carpet segment rose 3 percent in the quarter, with strength coming from the residential end of this business.
Gross margin in the quarter gained 92 basis points to finish at 26.7 percent. Selling, general and administrative expenses dropped 32.3 percent in dollars and 25 basis points as a percentage of sales, to 18.8 percent. Lorberbaum said Mohawk’s expenses numbers took advantage of improved product mix, increased productivity and SG&A management.
Looking ahead to 2014, Lorberbaum said Mohawk would increase capital investments “to support additional growth, expand our product offerings and reduce costs. We will continue driving all aspects of our business to improve profits and increase shareholder value.”