<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
[Mark One]
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 29, 1996
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from ___________ to __________
Commission File Number: 01-19826
MOHAWK INDUSTRIES, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
Delaware 52-1604305
(STATE OR OTHER JURISDICTION OF (I.R.S. EMPLOYER
INCORPORATION OR ORGANIZATION) IDENTIFICATION NO.)
Post Office Box 12069,
160 South Industrial Boulevard,
Calhoun, Georgia 30703
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (706) 629-7721
Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the Registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes x No
------ -------
The number of shares outstanding of the issuer's classes of capital stock as of
July 29, 1996, the latest practicable date, is as follows: 34,373,639 shares of
Common Stock, $.01 par value.
<PAGE>
MOHAWK INDUSTRIES, INC.
INDEX
<TABLE>
<CAPTION>
Page No.
-------
<S> <C>
Part I. Financial Information:
Item 1. Financial Statements
Condensed Consolidated Balance Sheets -
June 29, 1996 and December 31, 1995 3
Condensed Consolidated Statements of Earnings -
Three months ended June 29, 1996 and July 1, 1995 5
Six months ended June 29, 1996 and July 1, 1995 6
Condensed Consolidated Statements of Cash Flows -
Six months ended June 29, 1996 and July 1, 1995 7
Notes to Condensed Consolidated Financial Statements 8
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 10
Part II. Other Information 12
</TABLE>
2
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM I. FINANCIAL STATEMENTS
MOHAWK INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS
(In thousands)
(Unaudited)
<TABLE>
<CAPTION>
June 29, 1996 December 31, 1995
------------- -----------------
<S> <C> <C>
Current assets:
Receivables $228,322 177,778
Inventories 326,202 299,191
Prepaid expenses 16,424 17,607
Deferred income taxes 12,858 12,858
-------- -------
Total current assets 583,806 507,434
-------- -------
Property, plant and equipment, at cost 506,554 471,048
Less accumulated depreciation and
amortization 177,175 153,082
-------- -------
Net property, plant and equipment 329,379 317,966
-------- -------
Other assets 81,673 77,752
-------- -------
Total assets $994,858 903,152
======== =======
</TABLE>
See accompanying notes to condensed consolidated financial statements.
3
<PAGE>
MOHAWK INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS, CONTINUED
LIABILITIES AND STOCKHOLDERS' EQUITY
(In thousands, except per share data)
(Unaudited)
<TABLE>
<CAPTION>
June 29, 1996 December 31, 1995
------------- -----------------
<S> <C> <C>
Current liabilities:
Current portion of long-term debt and notes payable $ 81,089 61,262
Accounts payable and accrued expenses 229,761 201,372
------------- -----------------
Total current liabilities 310,850 262,634
Deferred income taxes 21,742 21,742
Long-term debt 353,247 341,775
Other long-term liabilities 5,063 2,098
------------- -----------------
Total liabilities 690,902 628,249
------------- -----------------
Stockholders' equity:
Preferred stock, $.01 par value; 60,000 shares
authorized; no shares issued - -
Common stock, $.01 par value; 75,000 shares
authorized; 34,372 and 34,394 shares issued
in 1996 and 1995, respectively 344 344
Additional paid-in capital 129,792 122,747
Retained earnings 173,977 152,244
------------- -----------------
304,113 275,335
Less:
Treasury stock, at cost; 1,302 shares in 1995 - 115
Deferred compensation from stock options 157 317
------------- -----------------
Total stockholders' equity 303,956 274,903
------------- -----------------
Total liabilities and stockholders' equity $ 994,858 903,152
============= =================
</TABLE>
See accompanying notes to condensed consolidated financial statements.
4
<PAGE>
MOHAWK INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands, except per share data)
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
------------------------------
June 29, 1996 July 1, 1995
------------- ------------
<S> <C> <C>
Net sales $ 474,552 429,241
Cost of sales 357,438 335,144
----------- ----------
Gross profit 117,114 94,097
Selling, general and administrative expenses 80,213 69,356
Restructuring costs - 2,674
Carrying value reduction of property, plant and equipment - 2,711
----------- ----------
Operating income 36,901 19,356
----------- ----------
Other expense:
Interest expense 8,691 9,454
Other expense, net 1,114 738
----------- ----------
9,805 10,192
----------- ----------
Earnings before income taxes 27,096 9,164
Income taxes 10,701 3,545
----------- ----------
Net earnings $ 16,395 5,619
=========== ==========
Earnings per common and common
equivalent share $ 0.48 0.17
=========== ==========
Weighted average common and common
equivalent shares outstanding 34,514 33,747
=========== ==========
</TABLE>
See accompanying notes to condensed consolidated financial statements.
5
<PAGE>
MOHAWK INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands, except per share data)
(Unaudited)
<TABLE>
<CAPTION>
Six Months Ended
------------------------------
June 29, 1996 July 1, 1995
-------------- -------------
<S> <C> <C>
Net sales $858,219 808,002
Cost of sales 653,921 631,987
-------- -------
Gross profit 204,298 176,015
Selling, general and administrative expenses 149,352 134,619
Restructuring costs - 2,674
Carrying value reduction of property, plant and equipment - 2,711
-------- -------
Operating income 54,946 36,011
-------- -------
Other expense:
Interest expense 17,182 18,478
Other expense, net 1,845 1,341
-------- -------
19,027 19,819
-------- -------
Earnings before income taxes 35,919 16,192
Income taxes 14,186 6,266
-------- -------
Net earnings $ 21,733 9,926
======== =======
Earnings per common and common
equivalent share $ 0.63 0.29
======== =======
Weighted average common and common
equivalent shares outstanding 34,306 33,717
======== =======
</TABLE>
See accompanying notes to condensed consolidated financial statements.
6
<PAGE>
MOHAWK INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
<TABLE>
<CAPTION>
Six Months Ended
-----------------------------
June 29, 1996 July 1, 1995
------------- ------------
<S> <C> <C>
Cash flows from operating activities:
Net earnings $ 21,733 9,926
Adjustments to reconcile net earnings to net cash
provided by operating activities:
Depreciation and amortization 27,061 28,295
Provision for doubtful accounts 6,315 3,769
Carrying value reduction of property, plant and equipment - 2,711
Changes in operating assets and liabilities, net of effect
of acquisition:
Receivables (62,889) (19,331)
Inventories (27,011) (12,020)
Accounts payable and accrued expenses 48,814 21,611
Other assets and prepaid expenses (343) 816
Other liabilities (123) (9,577)
-------- -------
Net cash provided by operating activities 13,557 26,200
-------- -------
Cash flows from investing activities:
Additions to property, plant and equipment, net (16,350) (25,471)
Acquisition, net of cash acquired - (43,982)
-------- -------
Net cash used in investing activities (16,350) (69,453)
-------- -------
Cash flows from financing activities:
Net change in revolving line of credit 17,999 98,737
Payments on term loans (7,900) (4,250)
Redemption of Galaxy indebtedness - (44,487)
Change in outstanding checks in excess of cash (14,626) (7,212)
Common stock transactions 7,320 465
-------- -------
Net cash provided by financing activities 2,793 43,253
-------- -------
Net change in cash - -
Cash, beginning of year - -
-------- -------
Cash, end of period $ - -
======== =======
Net cash paid (received) during the period for:
Interest $ 15,392 17,321
======== =======
Income taxes $ 6,616 (5,376)
======== =======
</TABLE>
See accompanying notes to condensed consolidated financial statements.
7
<PAGE>
MOHAWK INDUSTRIES, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except per share data)
(Unaudited)
1. The accompanying unaudited condensed consolidated financial statements have
been prepared in accordance with the instructions to Form 10-Q and do not
include all of the information and footnotes required by generally accepted
accounting principles for complete financial statements. In the opinion of
management, all adjustments (consisting of normal recurring accruals) considered
necessary for a fair presentation have been included. These statements should be
read in conjunction with the financial statements and notes thereto included in
the Company's 1995 Annual Report filed on Form 10-K, as filed with the
Securities and Exchange Commission, which includes consolidated financial
statements for the fiscal year ended December 31, 1995.
The Company's earnings per share are computed by dividing net earnings by the
weighted average common and common equivalent shares outstanding. Dilutive
common stock options are included in the earnings per share calculation using
the treasury stock method.
During the six months ended June 29, 1996, the Company recorded a direct
increase in stockholders' equity of $6,809 as a result of the tax benefit from
the exercise of stock options that were granted primarily in 1988 and 1989 in
connection with the Company's 1988 leveraged buyout.
Certain prior year financial statement balances have been reclassified to
conform with the current year's presentation.
2. Receivables
Receivables are as follows:
<TABLE>
<CAPTION>
June 29, 1996 December 31, 1995
------------- -----------------
<S> <C> <C>
Customers, trade $254,829 206,015
Income tax receivable 714 1,298
Other 4,144 2,610
-------- -------
259,687 209,923
Less allowance for discounts, returns, claims
and doubtful accounts 31,365 32,145
-------- -------
Net receivables $228,322 177,778
======== =======
</TABLE>
3. Inventories
The components of inventories are as follows:
<TABLE>
<CAPTION>
June 29, 1996 December 31, 1995
------------- -----------------
<S> <C> <C>
Finished goods $173,458 165,137
Work in process 45,025 47,125
Raw materials 107,719 86,929
-------- -------
Total inventories $326,202 299,191
======== =======
</TABLE>
8
<PAGE>
MOHAWK INDUSTRIES, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED
(In thousands, except per share data)
(Unaudited)
<TABLE>
<CAPTION>
<S> <C> <C>
4. Other assets
Other assets are as follows:
June 29, 1996 December 31, 1995
------------- -----------------
Goodwill, net of accumulated amortization of
$4,851 and $4,108, respectively $ 54,417 55,160
Other assets 27,256 22,592
------------- -----------------
Total other assets $ 81,673 77,752
============= =================
</TABLE>
5. Accounts payable and accrued expenses
Accounts payable and accrued expenses are as follows:
<TABLE>
<CAPTION>
June 29, 1996 December 31, 1995
------------- -----------------
<S> <C> <C>
Outstanding checks in excess of cash $ 16,225 30,881
Accounts payable, trade 133,426 98,122
Accrued expenses 65,889 53,574
Accrued compensation 14,221 18,795
------------- -----------------
Total accounts payable and accrued expenses $ 229,761 201,372
============= =================
</TABLE>
6. Notes payable and long-term debt
On June 6, 1996, the Company amended and restated its revolving credit agreement
to decrease its credit availability from $300,000 to $250,000 due to decreasing
external financing needs.
During the second quarter of 1996, the Company acquired certain equipment,
primarily used for the extrusion of polypropylene yarn, valued at $21,200 in
exchange for a promissory note due in April 1997. The promissory note pays
interest at a variable rate that ranges from 0.25% to 0.875% above LIBOR.
7. Nonrecurring costs
During the second quarter of 1995, the Company recorded restructuring costs to
operating income of $2,674 related to employee termination benefits, relocating
inventories and equipment and other costs associated with certain mill closings.
In connection with the adoption of FAS No. 121, the Company also recorded an
impairment loss to operating income of $2,711 during the second quarter of 1995
for the write-down of property, plant and equipment to be disposed of related to
these mill closings. The after-tax effect of the restructuring costs and the
impairment loss for the three months and six months ended July 1, 1995 was
$3,301, or $0.10 per share.
9
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
Results of Operations
Quarter Ended June 29, 1996 As Compared With Quarter Ended July 1, 1995
- -----------------------------------------------------------------------
Net sales for the quarter ended June 29, 1996 were $474.6 million, which
represented an increase of 11% from the $429.2 million reported for the second
quarter of 1995. This sales increase was attributable to an improvement in the
Company's market share and an acceleration of customer orders from the third
quarter. The Company believes the customers accelerated orders in anticipation
of a July 1996 price increase which was in response to fiber cost increases.
Gross profit for the second quarter of the current year was $117.1 million
(24.7% of net sales). In the second quarter of 1995, gross profit was $94.1
million (21.9% of net sales). This change is due to increased sales,
manufacturing improvements from restructuring the residential operations, raw
material cost reductions in latex and polypropylene-based materials, higher
production levels resulting in better absorption of fixed costs and other
manufacturing improvements. The manufacturing consolidations include the
closing of five residential manufacturing facilities during 1995 as well as the
realignment of the remaining residential mills to better utilize the strengths
of each mill. The Company's integration of the manufacturing, distribution and
information systems areas is progressing as planned and has started contributing
to the margin improvement.
Selling, general and administrative expenses for the current quarter were
$80.2 million (16.9% of net sales) compared to $69.4 million (16.2% of net
sales) for the prior year's second quarter. The percentage increase was
primarily due to higher sample costs, which the Company believes are the result
of increased dealer sample orders in response to a competitor's recent move into
retail operations, and a higher provision for bad debts.
Interest expense for the current period was $8.7 million compared to $9.5
million in the second quarter of 1995. The primary factors for the decrease
were a reduction in debt levels and lower interest rates on the Company's
revolving credit agreement.
In the current period, income tax expense was $10.7 million, or 39.5% of
earnings before income taxes. In the second quarter of 1995, income tax
expense was $3.5 million, or 38.7% of earnings before income taxes. The
primary reason for the lower effective tax rate in 1995 was certain
nonrecurring deductions that were treated as permanent differences in 1995.
Six Months Ended June 29, 1996 As Compared With Six Months Ended July 1, 1995
- -----------------------------------------------------------------------------
Net sales for the six months ended June 29, 1996 were $858.2 million, which
represented an increase of 6% from the $808.0 million reported for the first six
months of 1995. This sales increase was primarily attributable to the growth
achieved in the second quarter of 1996.
Gross profit for the first half of the current year was $204.3 million (23.8%
of net sales). In the first half of 1995, gross profit was $176.0 million
(21.8% of net sales). This increase is due to increased sales, manufacturing
improvements from restructuring the residential operations, raw material cost
reductions in latex and polypropylene-based materials, higher production levels
resulting in better absorption of fixed costs and other manufacturing
improvements. The manufacturing consolidations include the closing of five
residential manufacturing facilities during 1995 as well as the realignment of
the remaining residential mills to better utilize the strengths of each mill.
The Company's integration of the manufacturing, distribution and information
systems areas is progressing as planned and has started contributing to the
margin improvement.
Selling, general and administrative expenses for the first six months of the
current year were $149.4 million (17.4% of net sales) compared to $134.6 million
(16.7% of net sales) for the prior year's first six months. The percentage
increase was primarily due to higher sample costs, which the Company believes
are the result of increased dealer sample orders in response to a competitor's
recent move into retail operations, and a higher provision for bad debts.
During the second quarter of 1995, the Company recorded restructuring costs of
$2.7 million related to employee termination benefits, relocating inventories
and equipment and other costs associated with certain mill closings. In
connection with the adoption of FAS No. 121, the Company also recorded an
impairment loss to
10
<PAGE>
operating income of $2.7 million during the second quarter of 1995 for the
write-down of property, plant and equipment to be disposed of related to these
mill closings. The after-tax effect of the restructuring costs and the
impairment loss for the three months and six months ended July 1, 1995 was $3.3
million, or $0.10 per share.
Interest expense for the current period was $17.2 million compared to $18.5
million in the first six months of 1995. The primary factors for the decrease
were a reduction in debt levels and lower interest rates on the Company's
revolving credit agreement.
In the current period, income tax expense was $14.2 million, or 39.5% of
earnings before income taxes. In the first half of 1995, income tax expense
was $6.3 million, or 38.7% of earnings before income taxes. The primary
reason for the lower effective tax rate in 1995 was certain nonrecurring
deductions that were treated as permanent differences in 1995.
LIQUIDITY AND CAPITAL RESOURCES
The Company's primary capital requirements are for working capital, capital
expenditures and acquisitions. The Company's capital needs are met through a
combination of internally-generated funds, bank credit lines and credit terms
from suppliers. On June 6, 1996, the Company amended and restated its revolving
credit agreement to decrease its credit availability from $300 million to
$250 million due to decreasing external financing needs.
The level of accounts receivable increased from $177.8 million at the
beginning of 1996 to $228.3 million at June 29, 1996. The $50.5 million
increase resulted primarily from seasonally higher sales volume in June as
compared to December. Inventories rose from $299.2 million at the beginning of
1996 to $326.2 million at June 29, 1996, due to requirements to meet seasonal
customer demand.
Capital expenditures totaled $37.6 million in the first half of 1996, which
included $21.2 million of equipment used primarily for the extrusion of
polypropylene yarn that was acquired in a noncash transaction in exchange for a
promissory note due in April 1997. The promissory note pays interest at a
variable rate that ranges from 0.25% to 0.875% above LIBOR. The capital
expenditures were incurred primarily to modernize and expand manufacturing
facilities and equipment. The Company's capital projects are primarily focused
on increasing capacity, improving productivity and reducing costs. Capital
spending for the remainder of 1996 is expected to approximate from $17.4 to
$27.4 million, the majority of which will be used to purchase equipment and
expand existing plants.
Some of the statements contained in this document are forward looking
statements that involve risks and uncertainties. A variety of factors could
cause actual results to differ materially from those anticipated, some of which
are market conditions in the carpet industry, raw material prices, timing of
capital expenditures and other risk factors that are discussed from time to time
in the Company's SEC reports.
IMPACT OF INFLATION
Inflation affects the Company's manufacturing costs and operating expenses.
The carpet industry has experienced moderate inflation in the prices of certain
raw materials and outside processing for the last three years. The Company has
generally passed along nylon fiber cost increases to its customers.
SEASONALITY
The carpet business is seasonal, with the Company's second, third and fourth
quarters typically producing higher net sales and operating income. By
comparison, results for the first quarter tend to be the weakest. This
seasonality is primarily attributable to consumer residential spending patterns
and higher installation levels during the spring and summer months.
11
<PAGE>
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
The Company is involved in routine litigation from time to time in the regular
course of its business. Except as noted below, there are no material legal
proceedings pending or known to be contemplated to which the Company is a party
or to which any of its property is subject.
In June 1994, the Company and several other carpet manufacturers received
subpoenas to produce documents from a grand jury of the United States District
Court in Atlanta. The subpoenas were requested by the Antitrust Division of the
U. S. Department of Justice in connection with an investigation of the industry.
The Company believes that the results of this investigation will not have a
material adverse impact on the financial condition of the Company.
In December 1995, the Company and four other carpet manufacturers were added
as defendants in a purported class action lawsuit, In re Carpet Antitrust
Litigation, pending in the United States District Court for the Northern
District of Georgia, Rome Division. The amended complaint alleges price fixing
regarding polypropylene products in violation of Section One of the Sherman Act.
The Company is a party to a lawsuit captioned Gaehwiler v. Sunrise Carpet
Industries, Inc. et. al. which was filed in the Superior Court of the State of
California, City and County of San Francisco on May 17, 1996. The Gaehwiler
complaint is brought on behalf of a purported class of indirect purchasers of
carpet in the State of California and seeks damages for alleged violations of
California antitrust and unfair competition laws. The Company believes both of
these lawsuits are without merit and intends to vigorously defend against them.
ITEM 2. CHANGES IN SECURITIES
None.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
The Annual Meeting of Stockholders was held on May 23, 1996, at which time
stockholders were asked to elect a class of Directors to serve a three-year term
beginning in 1996. Messrs. Jeffrey S. Lorberbaum and Robert N. Pokelwaldt were
elected as Directors of the Company for a term expiring in 1999. Mr. Lorberbaum
was elected by stockholders owning 26,810,504 shares of common stock, with
stockholders owning 20,347 shares withholding authority. Mr. Pokelwaldt was
elected by stockholders owning 26,809,910 shares of common stock, with
stockholders owning 20,941 shares withholding authority. Messrs. David L. Kolb,
Leo Benatar, Bruce C. Bruckmann, Alan S. Lorberbaum and Larry W. McCurdy
continued their terms of office as Directors.
ITEM 5. OTHER INFORMATION
None.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(A) EXHIBITS
NO. DESCRIPTION
- --- -------------------------------------------------------------------------
11 Statement re: Computation of Per Share Earnings
27 Financial Data Schedule
(B) REPORTS ON FORM 8-K
None.
12
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
MOHAWK INDUSTRIES, INC.
Dated: July 30, 1996 By: /s/ David L. Kolb
----------------------------------------------
DAVID L. KOLB, Chairman of the Board and Chief
Executive Officer (principal executive officer)
Dated: July 30, 1996 By: /s/ John D. Swift
----------------------------------------
JOHN D. SWIFT, Chief Financial Officer,
Vice President-Finance and Assistant Secretary
(principal financial and accounting officer)
13
<PAGE>
EXHIBIT INDEX
NO. DESCRIPTION
- --- -----------------------------------------------------
11 Statement re: Computation of Per Share Earnings
27 Financial Data Schedule
14
<PAGE>
EXHIBIT 11
MOHAWK INDUSTRIES, INC. AND SUBSIDIARIES
STATEMENT RE: COMPUTATION OF PER SHARE EARNINGS
(In thousands, except per share data)
(Unaudited)
NOTE: Earnings per share are presented in accordance with Regulation S-K, Item
601(b)(11) and APB Opinion No. 15.
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
----------------------------- ---------------------------
June 29, 1996 July 1, 1995 June 29, 1996 July 1, 1995
------------- ------------ ------------- ------------
<S> <C> <C> <C> <C>
Net earnings $ 16,395 5,619 21,733 9,926
============= ============ ============= ===========
Weighted average common and common
equivalent shares outstanding:
Weighted average common shares outstanding 34,360 32,565 33,915 32,539
Add weighted average common equivalent
shares - options to purchase common shares, net 154 1,182 391 1,178
------------- ------------ ------------- -----------
Weighted average common and common
equivalent shares outstanding 34,514 33,747 34,306 33,717
============= ============ ============= ===========
Earnings per common and common
equivalent share $ 0.48 0.17 0.63 0.29
============= ============ ============= ===========
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM MOHAWK
INDUSTRIES, INC.'S QUARTERLY REPORT TO STOCKHOLDERS FOR THE QUARTER ENDED JUNE
29, 1996 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-29-1996
<CASH> 0
<SECURITIES> 0
<RECEIVABLES> 259,687
<ALLOWANCES> 31,365
<INVENTORY> 326,202
<CURRENT-ASSETS> 583,806
<PP&E> 506,554
<DEPRECIATION> 177,175
<TOTAL-ASSETS> 994,858
<CURRENT-LIABILITIES> 310,850
<BONDS> 353,247
0
0
<COMMON> 344
<OTHER-SE> 303,612
<TOTAL-LIABILITY-AND-EQUITY> 994,858
<SALES> 858,219
<TOTAL-REVENUES> 858,219
<CGS> 653,921
<TOTAL-COSTS> 653,921
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 6,315
<INTEREST-EXPENSE> 17,363
<INCOME-PRETAX> 35,919
<INCOME-TAX> 14,186
<INCOME-CONTINUING> 21,733
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 21,733
<EPS-PRIMARY> 0.63
<EPS-DILUTED> 0.63
</TABLE>
