/PRNewswire-FirstCall/ -- Mohawk Industries, Inc. (NYSE: MHK) today announced 2009 fourth quarter net earnings of
and diluted earnings per share (EPS) of
which included a restructuring charge of approximately
primarily related to our distribution and manufacturing infrastructure. Excluding the restructuring charge, net earnings and EPS would have been
per share, respectively. In the fourth quarter of 2008, the net loss was
and loss per share was
. Excluding the 2008 fourth quarter goodwill, intangible and restructuring charges, net loss and loss per share would have been
per share, respectively. Net sales for the 2009 fourth quarter were
, a decrease of 9% (11% with a constant exchange rate) from 2008. Strong working capital management, reductions in capital spending and active cost control enabled generation of free cash flow of
for the quarter.
For the full year of 2009, our net loss was
or a net loss per share of
. For the full year of 2008, net loss and loss per share were
per share, respectively. Net sales for 2009 were
representing a 22% decrease from 2008. The sales decrease for both the quarter and the year in the U.S. and
is primarily attributable to continuing weak consumer discretionary spending, low home sales and soft business investment.
In commenting on the fourth quarter results,
Jeffrey S. Lorberbaum
, Chairman and CEO stated, "Our fourth quarter earnings exceeded expectations due to the implementation of cost savings efforts, personnel reductions and plant consolidations. Our balance sheet is strong with over
of cash and a net debt to total capital ratio of 26%. All our segments have reduced infrastructure and capacity and improved productivity. New products have been developed in all segments that will enhance our sales and market position. In spite of the very difficult environment, we are strategically positioning our company for growth. Our geographic product expansion continues with enhanced distribution of ceramic tile in
, laminate in
and wood flooring in
. Environmental sustainability is a priority and Newsweek recognized Mohawk as one of the top 15 companies in the consumer product category for our efforts."
Mohawk segment sales were down 8% for the fourth quarter, better than the industry. We are focused on streamlining the business and reducing costs in this segment. We have reorganized our commercial carpet manufacturing operations, consolidated our backing facilities, combined carpet and ceramic distribution warehousing and further reduced staffing levels. In the first quarter of 2010, we are implementing a price increase to recover raw material cost inflation. Our proprietary Smart Strand brand has achieved broad customer acceptance in the market place as a high value alternative to nylon and polyester due to its superior softness, enhanced performance and easy maintenance.