Article Number : 1515 |
|
Article Detail |
|
 | |
| Date | 11/27/2006 11:02:21 AM |
| Written By | LGM & Associates Technical Flooring Services |
| View this article at: | //floorbiz.com/BizResources/NPViewArticle.asp?ArticleID=1515 |
| Abstract | SOARING: Mohawk Industries posted spectacular third quarter results with net sales 19% over last year, exceeding $2 billion. For the first nine months, the company had net sales of more than $6 billion. At that pace, Mohawk’s annual sales should hit $8 billion... |
| Article | SOARING: Mohawk Industries posted spectacular third quarter results with net sales 19% over last year, exceeding $2 billion. For the first nine months, the company had net sales of more than $6 billion. At that pace, Mohawk’s annual sales should hit $8 billion. The company attributes the strong growth in sales to the Unilin acquisition, a sharp increase in hard surface sales and price increases. Jeff Loberbaum, Mohawk’s chairman and CEO, said Dal-Tile sales grew 11% and the Unilin results were strong for the quarter. “The slowing U.S. economy impacted our business,” he said. “Both residential replacement and new residential construction weakened through the quarter and the commercial business continued positive trends. Raw material costs increased and remained high even though oil costs declined.” Can you imagine what the results would have been if those conditions were favorable? RIGHT ON: Lorberbaum was right about the commercial business being positive. According to Ken Simonson, chief economist for the Associated General ontractors of America (AGC), “Nonresidential construction spending climbed to its 13th consecutive record in September, showing the homebuilding slide hasn’t carried other segments downhill with it.” He pointed out in the first nine months of the year combined, overall construction spending was up 6.6% over the same period in 2005. “Private nonresidential construction spurted ahead 17%, public construction rose 10%. Major private sector growth categories on a year-to-date basis included lodging (hotels and resorts) up 48%; multi-retail (general merchandise stores, shopping centers and malls) up 37%; hospitals up 25%, and manufacturing up 23%.” The commercial market is solid and inviting. VOX POPULI: He shall be heard. Dr. Robert Peoples, executive director of the Carpet America Recovery Effort (CARE) and director of Sustainability for the Carpet & Rug Institute, has been selected to serve on the International Advisory for the First International Symposium on Fiber Recycling. The symposium will be held on June 20 and 21, 2007, at the Matsugasaki Campus of the Kyoto Institute of Technology in Kyoto, Japan. In addition, Peoples is one of six candidates being considered for the Trade Association slot on the board of directors of the United States Green Building Council, which is the first time a trade group representative has been invited to join its board. FLEET’S IN: Fleet Owner, a publication covering the trucking industry, named Shaw Industries’ trucking fleet as one of the top 20 private fleets in the country. Shaw’s corporate slogan, “Where Great Floors Begin,” appears on all 3,720 of the company’s trailers. The publication found the fleet consists of more than 1,400 drivers, 1,100 power units, and 47 straight trucks. Averaging more than 75 million miles a year, the size and scope of the company’s in-house transportation is so resoundingly effective that 95% of its orders are delivered nationwide assuring next-day service. ARTFUL DODGER: I just read this little anecdote and would like to share it with you—as a lesson in quick thinking. General Westmoreland called down to the base motor pool and asked what vehicles were available. The private who answered the phone said: “Two jeeps, one truck and one sedan for the stupid general.” Not believing what he just heard, the general asked the private: “Do you know who you’re talking to?” The private said, “No.” “Well, this is General Westmoreland.” The private thought for a moment—highly aware of his incredible blunder—and asked: “Well, do you know who you’re talking to?” The general responded, “No, I don’t,” to which the private said: “Well, so long stupid,” and hung up. The moral of the story: a general doesn’t always outrank a private. |