QUOTE AND NEWS
Forbes  Apr 2  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 #54 analyst pick, moving up by 4 spots.         This rank is formed by averaging...
SeekingAlpha  Feb 22  Comment 
Mohawk Industries Inc. (MHK) Q4 2013 Earnings Conference Call February 21, 2014 11:00 AM Executives Frank Boykin - CFO Jeffrey Lorberbaum - Chairman and CEO Analysts Dennis McGill - Zelman & Associates Eli Hackel - Goldman...
Benzinga  Feb 21  Comment 
Mohawk Industries (NYSE: MHK) was downgraded from Strong Buy to Market Perform by Raymond James following fourth quarter earnings. The firm removed its $160 price target. Sam Darkatsh, analyst at Raymond James, believes the “risk/reward is no...
StreetInsider.com  Feb 20  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Earnings/Mohawk+Industries+%28MHK%29+Tops+Q4+EPS+by+4c/9198315.html for the full story.
Benzinga  Jan 27  Comment 
Monday morning's rating reports included an upgrade by JP Morgan for Mohawk Industries (NYSE: MHK). Analyst Michael Rehaut upgraded MHK from Neutral to Overweight, upping price target from $150 to $170. Rehaut noted, "While we are certainly...
TheStreet.com  Jan 27  Comment 
NEW YORK (TheStreet) -- JPMorgan upgraded Mohawk to "overweight" from "neutral" Monday, setting a price target of $170.Mohawk gained 1.8% to $143.86 in morning trading. Analyst Michael Rehaut wrote, "While we are certainly 'late to the party'...
Benzinga  Dec 12  Comment 
In a report published Thursday, Stifel analyst John Baugh reiterated a Buy rating on Mohawk Industries (NYSE: MHK), and raised the price target from $155.00 to $160.00. In the report, Stifel noted, “We spent the day with the CFO of Mohawk...
StreetInsider.com  Dec 9  Comment 
UPGRADES Credit Suisse upgrades Mohawk Industries (NYSE: MHK) from Neutral to Outperform. JPMorgan boosts Valero Energy (NYSE: VLO) from Underweight to Neutral. Morgan Stanley raises Kraft Foods Group (NASDAQ: KRFT) from Equalweight to...
StreetInsider.com  Dec 9  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Upgrades/Credit+Suisse+Upgrades+Mohawk+Industries+%28MHK%29+to+Outperform/8957972.html for the full story.




 

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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