Mohawk Industries, Inc. (MHK) has reported 22.02 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $233.75 million, or $3.13 a share in the quarter, compared with $191.56 million, or $2.57 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $243.28 million, or $3.26 a share compared with $209.99 million or $2.82 a share, a year ago.
Revenue during the quarter grew 9.24 percent to $2,182.57 million from $1,998 million in the previous year period. Gross margin for the quarter expanded 52 basis points over the previous year period to 31.66 percent. Total expenses were 86.01 percent of quarterly revenues, down from 87.53 percent for the same period last year. This has led to an improvement of 151 basis points in operating margin to 13.99 percent.
Operating income for the quarter was $305.27 million, compared with $249.24 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $431.30 million.
Mohawk Industries' fourth quarter and full year performance, Jeffrey S. Lorberbaum, chairman and chief executive officer, stated, "In the fourth quarter, our sales and earnings per share set records for the period. Our operating margin for the quarter rose to 14.0%, a 150 basis point improvement over the prior year and the highest fourth quarter result in the company's history."
For the first-quarter, The company expects diluted earnings per share to be in the range of $2.64 to $2.73.
Working capital turns positive
Working capital of Mohawk Industries, Inc. has turned positive to $753.19 million on Dec. 31, 2016 from negative $9.06 million on Dec. 31, 2015. Current ratio was at 1.28 as on Dec. 31, 2016, up from 1 on Dec. 31, 2015.
Debt comes down
Mohawk Industries, Inc. has recorded a decline in total debt over the last one year. It stood at $2,511.48 million as on Dec. 31, 2016, down 21.32 percent or $680.48 million from $3,191.97 million on Dec. 31, 2015. Total debt was 24.55 percent of total assets as on Dec. 31, 2016, compared with 32.10 percent on Dec. 31, 2015. Debt to equity ratio was at 0.43 as on Dec. 31, 2016, down from 0.65 as on Dec. 31, 2015. Interest coverage ratio improved to 35.98 for the quarter from 13.49 for the same period last year.
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