Mohawk Shares Soar On Strong Outlook

PITTSBURGH (AP) — Shares of Mohawk Industries Inc. soared Friday, a day after the floor covering maker reported better-than-expected first-quarter results and earnings outlook.

The Calhoun, Ga.-based company on Thursday posted a wider loss of $105.9 million, or $1.55 per share, compared with a profit of $65.4 million, or 95 cents per share, in the year-earlier period. It said the larger loss was due to a sharp decline in revenue amid the continued housing slump and economic downturn.

Revenue fell 30 percent to $1.21 billion. The results were also weighed by a charge of $122 million related to the discontinuation of a carpet tile backing product, as well as a $4 million charge for restructuring.

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.

Mohawk forecast per-share earnings for the second quarter of 43 cents to 52 cents. Excluded from the guidance is an estimated second-quarter restructuring charge of roughly $15 million related to closing facilities.