Mohawk Posts 3Q Profit After Year-earlier Loss

CALHOUN, Ga. (AP) — Floor covering maker Mohawk Industries Inc. reported a profit for its third-quarter as its efforts to cut or control costs offset a decline in revenue.

The performance was a marked reveresal from a loss in the same period a year earlier, when it absorbed a massive impairment charge.

But the company said business conditions remain weak as it moves into seasonally slower quarters. The residential market appears to have stabilized, while the commercial market will continue to be difficult next year.

Lower production rates in the fourth quarter will result in higher overhead costs. It said carpet material costs will reduce margins until it passes them through with higher prices.

Jeffery S. Lorberbaum, Mohawk's chairman and CEO, said lower raw material and freight costs, personnel reductions, cost containment measures and plant consolidations helped boost the company's gross margin in the third quarter.

The Calhoun, Ga.-based company said after the markets closed Thursday its net income rose to $34.4 million, or 50 cents per share, for the three months ended Sept. 26. In the year-earlier period, Mohawk posted a loss of $1.49 billion, or $21.70 per share.