QUOTE AND NEWS
newratings.com  May 5  Comment 
WASHINGTON (dpa-AFX) - Mohawk Industries Inc (MHK) announced earnings for its first quarter that gained ground compared to the same period last year. The company said its bottom line came in at $176.99 million, or $2.38 per share. This was up...
Benzinga  Apr 12  Comment 
Mohawk Industries, Inc. (NYSE: MHK) has a strong execution history, and has been consolidating to gain leverage. MKM Partners’ Megan McGrath initiated coverage of the company with a Buy rating and a price target of $244. The analyst expects...
newratings.com  Feb 25  Comment 
WASHINGTON (dpa-AFX) - Mohawk Industries Inc (MHK) reported earnings for its fourth quarter that climbed from last year. The company said its bottom line advanced to $209.99 million, or $2.82 per share. This was higher than $166.55 million, or...
Benzinga  Jan 26  Comment 
On CNBC's Fast Money Halftime Report, Stephanie Link revealed that she is bullish on Stanley Black & Decker, Inc. (NYSE: SWK). She explained that the stock fell 12 percent and it now has an attractive risk/reward. The tools and storage...
Forbes  Jan 19  Comment 
The latest tally of analyst opinions from the major brokerage houses shows that among the components of the S&P 500 index, Mohawk Industries (MHK) is now the #23 analyst pick, moving up by 20 spots.
Market Intelligence Center  Nov 24  Comment 
The patented algorithms that power MarketIntelligenceCenter.com's Artificial Intelligence Center found a trading opportunity with Mohawk Industries Inc. (MHK) that should provide a 4.45% return in just 87 days. Sell one Feb. '16 call at the...
Market Intelligence Center  Nov 17  Comment 
Mohawk Industries Inc. (MHK) traded between $180.00 and $182.80 before closing at $182.68 Monday and presents some attractive trading opportunities today. MarketIntelligenceCenter.com’s patented algorithms selected a Feb. '16 $180.00 covered...




 

Mohawk Industries (NYSE:MHK) makes flooring, including tiling and rugs, for homes and businesses. The company is the second largest carpet and rug manufacturer in the US.[1] Mohawk and Shaw Industries controlled a combined 45% of the U.S. flooring market. Since only a handful of companies manufacture flooring, but many companies distribute it, Mohawk and Shaw have high pricing power. Only 5% of Mohawk's sales are via Home Depot (HD) or Lowe's Companies (LOW). This fragmented distribution helps Mohawk control pricing. The company generated $5.3 billion in revenue but incurred a net loss of $5 million in 2009.[2]

Petrochemicals account for between two-thirds and three-fourths of the cost of production of resin, a key input when making carpets, and so rising Oil Prices directly affect Mohawk's costs of production. The U.S. Housing Market also influences the flooring industry, but Mohawk has been partially insulated from the subprime-related housing crash since half of total flooring shipments go to replacement issues rather than new homes. Mohawk also has some immunity from the housing crash because a quarter of Mohawk's sales are to commercial real estate customers. Still, the company's sales fell by 22% in 2009 due to the weak housing market and sluggish economy.[2]

Company Overview

Mohawk products include carpets, ceramic tiles, hardwood, resilient, and laminate. These products are marketed under the Mohawk brands Aladdin, Bigelow, Custom Weave, Karastan, and Mohawk Home. 85% of Mohawk's net sales were from North America, with the remaining 15% coming from international sales.[1]

Business Segments[3]

  • Mohawk: the company designs, manufactures, distributes and markets thousands of styles of carpet and rugs in a broad range of colors, textures and patterns. In addition, the Mohawk segment markets and distributes ceramic tile, laminate, hardwood, resilient floor covering, carpet pad and flooring accessories. The brands in the segment are Mohawk, Horizon, and WundaWeve among others.
  • Dal-Tile: this segment designs, manufactures, distributes and markets a broad line of ceramic tile, porcelain tile and natural stone products. Products are distributed through separate distribution channels consisting of retailers, contractors, commercial users, independent distributors and home centers. The two main brands are Dal-Tile and American Olean.
  • Unilin: this segment designs, manufactures, licenses, distributes and markets laminate and hardwood flooring in Europe and the U.S. It also designs and manufactures roofing systems, insulation panels and other wood products in Europe. Products are distributed through separate distribution channels consisting of retailers, independent distributors and home centers. Unilin U.S. operations also manufacture Mohawk branded laminate and hardwood flooring which sells through the Mohawk channel. The majority of Unilin’s laminate sales, both in the U.S. and Europe, are for residential replacement.

Business Growth

It was dark when I woke. This is a ray of susnhine.

Until I found this I thouhgt I'd have to spend the day inside.

Competition

  • Mohawk Industries (NYSE:MHK) - World's largest tile, hardwood, and natural stone flooring manufacturer.
  • Shaw Industries, Inc. - World's largest carpet and rug manufacturer, owned by Berkshire Hathaway (BRK)
  • Dixie Group (NASDAQ:DXYN) - Sells high end carpet and rugs, commercially and residentially.
  • Interface (NASDAQ:IFSIA) - World's number 1 producer of commercial carpets.
  • Cavalier Corporation (NZE:CAV)- Specializes in carpet, carpet tile, wool procurement, and wool scouring.
  • Victoria PLC (LON:VCP)- Sells high end Victorian carpets in Europe.
  • Tai Ping Carpets Group (HKG:0146)- Manufactures carpets, yarns, and mattresses throughout Europe.
  • Beaulieu of America- Third largest carpet manufacturer in the world.

References

  1. 1.0 1.1 MHK 2009 10-K "General" pg. 1
  2. 2.0 2.1
  3. MHK 2009 10-K "Sales and Distribution" pg. 4-6
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