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[MOHAWK LETTERHEAD]
For Release: Immediately
Contact: John D. Swift, Chief Financial Officer
MOHAWK INDUSTRIES, INC. ANNOUNCES LEADERSHIP TRANSITION PLAN
Calhoun, Georgia, August 1, 2000 - Mohawk Industries, Inc. (NYSE : MHK) today
announced that David L. Kolb, 61, Chairman and Chief Executive Officer, will
retire from his position as Chief Executive Officer effective January 1, 2001.
David will remain as Chairman of the Board and will continue to be actively
involved in the strategic direction of the Company. Jeffrey S. Lorberbaum,
currently President and Chief Operating Officer, has been chosen by the Board of
Directors to succeed David as Chief Executive Officer.
Jeffrey Lorberbaum, 46, joined the Company in 1994 in the merger with Aladdin
Mills, where he was President and Chief Executive Officer. He held various
executive positions with Aladdin before the merger and has served as President
and Chief Operating Officer of Mohawk since 1995. He has over 24 years of
experience in the carpet and floor covering industry.
In commenting on the plan for leadership transition, Mr. Kolb said, "After 12
years as Chairman and Chief Executive Officer, I have determined that now is the
right time to transition leadership at the Company to a new generation of senior
management. Mohawk is positioned as a dominate carpet and rug supplier with
very significant opportunity to expand it's hard surface floor covering and
textile businesses. Jeff and I have worked closely together for the last 6
years to develop the management team needed to grow effectively in the future.
He is ready to take the helm. I have every confidence that Mohawk will continue
to grow and prosper under his able leadership."
David joined Mohawk in July, 1980 as President of the carpet division of Mohasco
Corporation. In 1988, he and other members of senior management along with
Citicorp Venture Capital, successfully completed a leveraged buyout of the
carpet division forming Mohawk Industries. David has served as Chairman and
Chief Executive Officer since that time. Strong financial performance in the
ensuing years allowed Mohawk to go public in 1992 with an initial public
offering.
Mr. Lorberbaum said, "Mohawk will miss David. Because of his leadership Mohawk
is strategically positioned for long term growth. Sales and market share have
increased tenfold over the last 10 years. David and I have worked together
since 1994 laying the groundwork for the Company as it exists today. Although
much has been done, we still
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have significant opportunities ahead. We are excited by the challenges ahead and
by the fact that David will continue to be available to assist us as our
Chairman."
Since 1992, the Company has completed twelve strategic acquisitions. These
acquisitions, coupled with internal growth, have increased sales from $279
million in 1991 to a current level of $3.2 billion, while market share has
increased from 3% to 28%. The Company has posted record profits in each of the
last four years and has achieved eighteen straight quarters of year over year
improved earnings performance. Since 1995, sales have grown at an annual rate
of 17 percent, while earnings per share have climbed at an annual growth rate of
47 percent.
In 1999, the Company was ranked number 495 in the Fortune 500 and 467 in the
Forbes 500. Fortune also recognized Mohawk as the 39th fastest profit growing
company in the Fortune 500 for the five-year period ending in 1999. Today the
Company is the largest producer in the world of area rugs and mats. It is the
second largest manufacturer of carpeting and has a strong presence in hard
surface flooring, padding and home textiles.
Mohawk is a leading producer of woven and tufted broadloom carpet and rugs for
residential and commercial applications. The Company designs, manufactures and
markets carpet in a broad range of colors, textures and patterns and is widely
recognized through its premier brand names, some of which include "Mohawk,"
"Aladdin," "Bigelow," "Custom Weave," "Durkan," "Galaxy," "Harbinger," "Helios,"
"Horizon," "Image," "Karastan," "Mohawk Commercial," "World," and "Wunda Weve."
Mohawk offers a broad line of area and washable rugs branded by Karastan,
Aladdin, Newmark & James and American Rug Craftsmen and decorative throw
blankets, placemats, pillows and chairpads branded by American Weavers. Mohawk
also offers a complete laminate product line and distributes carpet padding and
ceramic tile. The Company markets its products primarily through retailers and
dealers.
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