Mohawk Industries, Inc. (MHK) has reported a 16.91 percent rise in profit for the quarter ended Apr. 01, 2017. The company has earned $200.55 million, or $2.68 a share in the quarter, compared with $171.55 million, or $2.30 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $203.31 million, or $2.72 a share compared with $176.99 million or $2.38 a share, a year ago.
Revenue during the quarter went up marginally by 2.24 percent to $2,220.64 million from $2,172.05 million in the previous year period. Gross margin for the quarter expanded 119 basis points over the previous year period to 30.64 percent. Total expenses were 87.63 percent of quarterly revenues, down from 88.69 percent for the same period last year. This has led to an improvement of 106 basis points in operating margin to 12.37 percent.
Operating income for the quarter was $274.78 million, compared with $245.67 million in the previous year period.
Adjusted EBITDA for the quarter stood at $386.31 million.
Commenting on Mohawk Industries’ first quarter performance, Jeffrey S. Lorberbaum, Chairman and CEO, stated, "Our sales and earnings per share set records for the first quarter with volume, mix and productivity adding approximately $60 million to operating income. Our operating margin for the quarter rose to 12.4%, a 110 basis point improvement over the prior year and the highest first quarter result in the company’s history.
For the second-quarter, On an adjusted basis, the company forecasts diluted earnings per share to be in the range of $3.53 to $3.62.
Working capital increases sharply
Mohawk Industries, Inc. has recorded an increase in the working capital over the last year. It stood at $906.65 million as at Apr. 01, 2017, up 517.26 percent or $759.77 million from $146.88 million on Apr. 02, 2016. Current ratio was at 1.32 as on Apr. 01, 2017, up from 1.04 on Apr. 02, 2016.
Days sales outstanding were almost stable at 56 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 51 days for the quarter compared with 99 days for the previous year period.
Debt comes down
Mohawk Industries, Inc. has recorded a decline in total debt over the last one year. It stood at $2,630.25 million as on Apr. 01, 2017, down 19.06 percent or $619.53 million from $3,249.78 million on Apr. 02, 2016. Total debt was 24.52 percent of total assets as on Apr. 01, 2017, compared with 31.57 percent on Apr. 02, 2016. Debt to equity ratio was at 0.43 as on Apr. 01, 2017, down from 0.63 as on Apr. 02, 2016. Interest coverage ratio improved to 33.50 for the quarter from 19.97 for the same period last year.
Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
