Frank, would you give our financial report, please?

Frank H. Boykin

Sure. I'd be glad to, Jeff. Good morning, everyone. Net sales for the quarter were $1,409,000,000, up 5% or a 6% increase on a constant exchange rate basis. Both higher volume and pricing benefited our results. Gross profit was $359 million, with a margin of 25.5% flat with last year. Price increases, volume and productivity improvements offset inflation. SG&A was $287 million or 20.4% of net sales. This was an improvement of 90 basis points over last year. We're continuing to control our cost, holding our dollars flat and leveraging on higher sales. We expect the SG&A dollars to be flat for the full year.

Our operating income was $72 million, with a margin of 5.1%. Our margin grew 40 basis points over last year. We continue to drive profitability improvements throughout the business. Interest expense was $22 million. It was lower than last year, with lower rates from our new bank facility and a rating agency upgrade. We estimate our quarterly expense to be $20 million in future quarters.

Our income tax rate was 20%, which compares to a 17% rate last year. We expect the rate to improve slightly over the rest of the year. Earnings per share were $0.58 per share or a 38% improvement over 2011.

If we move to the segments. The Mohawk segment sales were $700 million or 1% better than last year as we implemented carpet price increases to offset inflation. Our carpet sales are up, in line with the carpet industry, which increased 3% year-over-year. This was offset by lower rug sales. In the rug business, deferred customer promotions, channel inventory declines and mix reduced our rug sales. Our operating income was $25 million, with a margin of 3.6%, which was flat with last year. Raw material inflation partially offset -- was partially offset by lagging price increases.

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