Mohawk Industries Inc (MHK) has reported a 25.58 percent rise in profit for the quarter ended Oct. 01, 2016. The company has earned $269.88 million, or $3.62 a share in the quarter, compared with $214.90 million, or $2.89 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $261.21 million, or $3.50 a share compared with $221.90 million or $2.98 a share, a year ago.
Revenue during the quarter grew 6.67 percent to $2,294.14 million from $2,150.66 million in the previous year period. Gross margin for the quarter expanded 92 basis points over the previous year period to 31.67 percent. Total expenses were 83.51 percent of quarterly revenues, down from 86.57 percent for the same period last year. This has led to an improvement of 306 basis points in operating margin to 16.49 percent.
Operating income for the quarter was $378.31 million, compared with $288.73 million in the previous year period.
However, the adjusted operating income for the quarter stood at $366.78 million compared to $308.66 million in the prior year period. At the same time, adjusted operating margin improved 164 basis points in the quarter to 15.99 percent from 14.35 percent in the last year period.
Commenting on Mohawk Industries’ third quarter performance, Jeffrey S. Lorberbaum, chairman and chief executive officer, stated, “During the period, our growth strengthened, and our margins continue to expand compared to the last year. Our strategy of investing in our existing business as well as synergistic acquisitions continues to deliver record results. Our earnings per share for the period were an all-time record for the company, marking the tenth consecutive quarter that Mohawk has delivered a year-over-year record quarterly EPS. Our operating margin rose to an all-time record of 16.5% or 16.0% on an adjusted basis, an increase of 160 basis points, as a result of higher sales volume and productivity.
Debt comes down
Mohawk Industries Inc has recorded a decline in total debt over the last one year. It stood at $2,713.83 million as on Oct. 01, 2016, down 14.73 percent or $468.89 million from $3,182.72 million on Oct. 03, 2015. Interest coverage ratio improved to 40.20 for the quarter from 14.95 for the same period last year.
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