Mohawk Reports 1Q Loss Of $105.9M

CALHOUN, Ga. (AP) — Floor covering maker Mohawk Industries Inc. on Thursday said it fell to a first-quarter loss from year-ago profit as revenue dropped off sharply amid the continued housing slump and economic downturn.

The company posted a loss of $105.9 million, or $1.55 a share, compared with a year-ago profit of $65.4 million, or 95 cents a share.

Revenue in the quarter ended March 28 fell 30 percent to $1.21 billion from $1.74 billion in the same period in 2008.

Analysts surveyed by Thomson Reuters, on average, were expecting a first-quarter loss of 85 cents a share on revenue of $1.38 billion. Analysts generally exclude one-time items from their estimates.

The company said that based on the current business environment, all segments anticipate positive operating income in the second quarter.

Mohawk said the economic conditions in both the U.S. and Europe remain weak in all channels. Commercial construction and remodeling projects are being postponed due to the uncertainty in the economy. The government stimulus, low interest rates, and easing credit should improve the residential business, the company said.