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Mohawk Industries (NYSE: MHK) | Company Profile, History, Competitors


 

Mohawk Industries (NYSE: MHK) is a diversified manufacturer of building products including, flooring, carpets, rugs, ceramic, tiles, laminate, wood and vinyl. It was spun out of Mohasco Corporation in 1998 and headquartered in Calhoun, GA.

Mohawk is the largest flooring company in the world. It provides various flooring products such as carpeting, hardwood, laminate, LVT and sheet vinyl. Mohawk uses a proprietary technology and fiber system in its carpet and rug products. It is also one of the  largest manufacturers of laminate flooring,

Business Overview

Mohawk operates in three main segments:
  • Flooring North America (42% of 2017 Revenues): Sells flooring products in the North American market. Mohawk has a 24% market share in the US flooring market.[1] 
  • Ceramic (36% of 2017 Revenues): Sells three types of ceramic products.
  • Flooring Rest of World (22% of 2017 Revenues): Sells flooring products to primarily Europe and Russia.

Flooring North America Segment

Mohawk sells carpets, rugs, hardwood, laminate, LVT and sheet vinyl to the North American market. Mohawk is the largest producer of rugs and second largest producer of carpets in the world. Mohawk has a proprietary technology and fiber systems in its carpet and rug products. Mohawk is also one of the largest manufacturers of laminate flooring, LVT and sheet vinyl in the United States.

Their brands are Aladdin, Columbia Flooring, Durkan, IVC, Mohawk, Pergo, Portico and SmartStrand.

Ceramics Segment

Mohawk sells three types of tiles; ceramic, porcelain and natural stone.
  • Ceramic: Natural product made of clay and talc. It is popular for floors and walls. it is typically the lowest cost product.
  • Porcelain: More durable, water resistant than ceramic. It is typically used for both exterior and interiors.
  • Natural Stone: Most expensive option and requires the most maintenance. Also known as granite, limestone, marble, quartz, sandstone and slate
Mohawk primarily focuses on the mid to higher end market.and avoids the commoditization in the ceramics market. Mohawk is the largest manufacturer of ceramic tile in the world.

Their brands are American Olean, Daltile, Marazzi, ragno and Emil Ceramics.

Flooring Rest of the World Segment

Mohawk sells laminate, hardwood, vinyl and roofing elements to Eastern, Western Europe and Russia. Mohawk also sells to Asia, but to a lesser extent. Mohawk is one of the largest manufacturers of laminate flooring in the world.

Their brands are IVC, Moduleo, Pergo, and Unilin.

History

Mohawk was spun out of Mohasco Corporation in 1988 as part of a leveraged buyout by Citicorp Investors. In 1992, it went public as a separate company. Through a series of acquisitions, Mohawk is now the largest flooring company in the world.

Competitors

Mohawk's main flooring competitors are Armstrong Flooring and Dixie Group.

Management

Jeffrey S. Lorberbaum (CEO): Jeffrey Lorberbaum series as CEO since 2001. Prior, he served in various roles at the company including COO and VP Operations.

Frank H. Boykin (CFO): Frank Boykin serves as CFO since 2005. prior, he served in various roles at the company including Corporate Controller. He had also worked as a Senior Manager at KPMG LLP.

Financials

 $ USD in millions     2013     2014  2015  2016  2017
 Revenues  $7,349  $7,803  $8,072  $8,959  $9,491 
 Gross Profit  $1,921  $2,154   $2,411   $2,813   $2,996 
 Operating Profit  $547  $773   $838   $1,280   $1,354 
 Net Income $349  $532  $615   $930   $972 
 EPS $4.82  $7.25  $8.31  $12.48  $12.98 

References