QUOTE AND NEWS
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...
Market Intelligence Center  Sep 12  Comment 
Option-trade picking algorithms patented by MarketIntelligenceCenter.com found a trading opportunity with Mohawk Industries Inc. (MHK) that should provide a 4.12% return in just 71 days. Sell one Nov. '14 call at the $145.00 level for each 100...
Market Intelligence Center  Sep 10  Comment 
Option-trade picking algorithms patented by MarketIntelligenceCenter.com found a trading opportunity with Mohawk Industries Inc. (MHK) that should provide a 4.08% return in just 73 days. Sell one Nov. '14 call at the $145.00 level for each 100...
Market Intelligence Center  Sep 9  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 4.89% downside protection. Sell one contract of...
SeekingAlpha  Aug 1  Comment 
Mohawk Industries (NYSE:MHK) Q2 2014 Earnings Call August 01, 2014 11:00 am ET Executives Frank H. Boykin - Chief Financial Officer Jeffrey S. Lorberbaum - Chairman and Chief Executive Officer Analysts Desi DiPierro - RBC...
newratings.com  Jul 31  Comment 
WASHINGTON (dpa-AFX) - Mohawk Industries, Inc. (MHK) reported second quarter net earnings of $153 million or $2.08 per share, compared to $85 million or $1.16 per share for the year-ago quarter. Excluding unusual charges, adjusted net earnings...
Forbes  Jul 28  Comment 
Investors eyeing a purchase of Mohawk Industries, Inc. (NYSE: MHK) shares, but tentative about paying the going market price of $126.47/share, might benefit from considering selling puts among the alternative strategies at their disposal. One...
Market Intelligence Center  Jul 17  Comment 
Mohawk Industries Inc. (MHK) presents a trading opportunity that offers a 5.59% return in just 128 days. A covered call on Mohawk Industries at the $130.00 level expiring on Nov. '14 offers an assigned return rate of 5.59% or 15.93% annualized....
Motley Fool  Jun 12  Comment 
As the residential and commercial markets show signs of recovery, carpet companies aren't necessarily the best proxies for them. As customers increasingly seek alternative flooring options, these two flooring companies have become interesting...
Market Intelligence Center  Jun 12  Comment 
Mohawk Industries Inc. (MHK) presents a trading opportunity that offers a 2.92% return in just 65 days. A covered call on Mohawk Industries at the $130.00 level expiring on Aug. '14 offers an assigned return rate of 2.92% or 16.40% annualized....




 

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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