QUOTE AND NEWS
Market Intelligence Center  Jul 2  Comment 
The patented option-trade picking algorithms that power MarketIntelligenceCenter.com's Artificial Intelligence Center have selected a covered-call trade on Mohawk Industries Inc. (MHK) that includes 4.28% downside protection. Sell one contract of...
Market Intelligence Center  Jun 25  Comment 
For a hedged play on Mohawk Industries Inc. (MHK), MarketIntelligenceCenter.com’s option-trade picking algorithms recommend the Aug. '15 $190.00 covered call for a net debit in the $183.77 area. That is also the break-even stock price for the...
Market Intelligence Center  Jun 11  Comment 
Mohawk Industries Inc. (MHK) presents a trading opportunity that offers a 3.29% return in just 71 days. A covered call on Mohawk Industries at the $190.00 level expiring on Aug. '15 offers an assigned return rate of 3.29% or 16.94% annualized....
Forbes  Jun 10  Comment 
When hedge fund manager "titans" think alike, investors are wise to pay attention. At Holdings Channel, we have reviewed 4,028 13F filings for the 03/31/2015 reporting period, and noticed that Mohawk Industries, Inc. (NYSE: MHK) was held by 8 of...
newratings.com  May 7  Comment 
WASHINGTON (dpa-AFX) - Mohawk Industries, Inc. (MHK) reported first quarter net earnings of $22 million or $0.30 per share, compared to 81 million or $1.11 per share for the year-ago quarter. Excluding items, adjusted net earnings for the first...
TheStreet.com  May 7  Comment 
NEW YORK (TheStreet) -- A promising housing market had shares of Mohawk Industries setting a series of all-time intraday highs so far in 2015. The latest was $188.29 set on March 31. But since then the housing market has stalled and now the...
Market Intelligence Center  Apr 28  Comment 
After closing Monday at $178.01, Mohawk Industries Inc. (MHK) presents an attractive opportunity to get a 2.81% return in just 52 days, which is an annualized return of 19.75% (for comparison purposes only). To enter this trade, sell one Jun. '15...
Market Intelligence Center  Mar 17  Comment 
MarketIntelligenceCenter.com's patented trade-picking algorithms have identified an attractive covered-call trade on Mohawk Industries Inc. (MHK). Look at the May. '15 $180.00 covered call for a net debit in the $172.65 area. This trade has a...
Market Intelligence Center  Mar 5  Comment 
After Wednesday’s trading in Mohawk Industries Inc. (MHK) the option-trade picking algorithms that power MarketIntelligenceCenter.com's Artificial Intelligence Center uncovered a trade that offers a 4.44% return, or 22.84% annualized (for...




 

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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