QUOTE AND NEWS
Forbes  Dec 16  Comment 
In early trading on Tuesday, shares of Range Resources (RRC) topped the list of the day's best performing components of the S&P 500 index, trading up 3.5%.  Year to date, Range Resources has lost about 32.0% of its value.
Market Intelligence Center  Nov 13  Comment 
After Wednesday’s trading in Mohawk Industries Inc. (MHK) the algorithms behind MarketIntelligenceCenter.com's Artifical Intelligence Center picked out a trade that offers a 4.15% or 15.30% (for comparison purposes only), while providing 6.14%...
Forbes  Nov 11  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 #15 analyst pick, moving up by 2 spots.         This rank is formed by averaging...
Benzinga  Oct 31  Comment 
Analysts at Raymond James upgraded Mohawk Industries (NYSE: MHK) from Outperform to Strong Buy. The price target for Mohawk Industries has been raised from $150.00 to $165.00. Mohawk Industries shares have gained 2.51% over the past 52 weeks,...
Benzinga  Oct 31  Comment 
newratings.com  Oct 30  Comment 
WASHINGTON (dpa-AFX) - Flooring products maker Mohawk Industries, Inc. (MHK), Thursday reported an increase in profit for the third quarter, as revenues increased. Earnings for the quarter came in ahead of analysts' estimates but revenues...
Market Intelligence Center  Oct 21  Comment 
A covered call identified by MarketIntelligececenter.com's patented algorithm on Mohawk Industries Inc. (MHK) could yield about 6.10% (18.24% annualized, for comparison purposes only) in 122 days. Pair a long position in the stock with the Feb....
Market Intelligence Center  Oct 20  Comment 
For a hedged play on Mohawk Industries Inc. (MHK), MarketIntelligenceCenter.com’s option-trade picking algorithms recommend the Feb. '15 $125.00 covered call for a net debit in the $119.23 area. That is also the break-even stock price for the...
Market Intelligence Center  Oct 15  Comment 
After Tuesday’s trading in Mohawk Industries Inc. (MHK) the algorithms behind MarketIntelligenceCenter.com's Artifical Intelligence Center picked out a trade that offers a 7% or 19.97% (for comparison purposes only), while providing 6.63%...
Market Intelligence Center  Sep 29  Comment 
After Friday’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 3.38% return, or 22.88% 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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