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 April 4, 1998
-----------------------------------
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 1-6853
SHAW INDUSTRIES, INC.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
GEORGIA 58-1032521
- --------------------------------------------------------------------------------
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
616 E. WALNUT AVENUE, DALTON, GEORGIA 30720
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (706) 278-3812
NOT APPLICABLE
- --------------------------------------------------------------------------------
Former name, former address and former fiscal year, if changed since last
report.
Indicate by check |X|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 ______.
APPLICABLE ONLY TO CORPORATE ISSUERS: Indicate the number of shares
outstanding of each of the issuer's classes of common stock, as of the latest
practicable date: May 11, 1998 - 121,058,054 shares
<PAGE>
SHAW INDUSTRIES, INC.
FORM 10-Q
INDEX
PART I - FINANCIAL INFORMATION PAGE NUMBERS
--------------------- ------------
Item 1. Financial Statements
Condensed Consolidated Balance Sheets - April 4, 1998
and January 3, 1998 3-4
Condensed Consolidated Statements of Income and Retained
Earnings - For the Three Months Ended
April 4, 1998 and March 29, 1997 5
Condensed Consolidated Statements of Cash Flow -
For the Three Months Ended April 4, 1998
and March 29, 1997 6
Notes to Condensed Consolidated Financial Statements 7-8
Item 2. Management's Discussion and Analysis
of Financial Condition and Results of Operations 9-10
PART II - OTHER INFORMATION 10-11
-----------------
SIGNATURES 12
2
<PAGE>
PART 1 - ITEM ONE - FINANCIAL INFORMATION
SHAW INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
ASSETS April 4, January 3,
1998 1998
----------- -----------
(UNAUDITED)
CURRENT ASSETS:
Cash and cash equivalents ........... $ 23,363 $ 43,571
----------- -----------
Accounts receivable, less
allowance for doubtful accounts and
discounts of $17,961 and $16,283 .. 381,062 374,516
----------- -----------
Inventories -
Raw materials ..................... 231,929 235,820
Work-in-process ................... 31,394 23,584
Finished goods .................... 273,314 270,655
----------- -----------
536,637 530,059
----------- -----------
Other current assets ................ 75,927 118,267
----------- -----------
TOTAL CURRENT ASSETS .. 1,016,989 1,066,413
----------- -----------
PROPERTY, PLANT AND EQUIPMENT,
At cost:
Land and land improvements .......... 26,181 27,827
Buildings and leasehold improvements 288,009 299,090
Machinery and equipment ............. 963,331 987,561
Construction in progress ............ 73,805 69,345
----------- -----------
1,351,326 1,383,823
Less - Accumulated depreciation and
amortization ................. (745,576) (759,444)
----------- -----------
605,750 624,379
----------- -----------
GOODWILL, net ........................ 234,429 236,209
----------- -----------
INVESTMENT IN JOINT VENTURE .......... 20,650 21,269
----------- -----------
OTHER ASSETS ......................... 20,596 19,344
----------- -----------
TOTAL ASSETS .......... $ 1,898,414 $ 1,967,614
=========== ===========
3
<PAGE>
LIABILITIES AND SHAREHOLDERS' INVESTMENT
April 4, January 3,
1998 1998
----------- -----------
(UNAUDITED)
CURRENT LIABILITIES:
Notes payable ....................... $ 9 $ 10
Current maturities of long-term debt 333 2,752
Accounts payable .................... 168,704 161,964
Accrued liabilities ................. 162,519 160,728
----------- -----------
TOTAL CURRENT LIABILITIES ...... 331,565 325,454
----------- -----------
LONG-TERM DEBT, less current maturities 977,838 930,424
----------- -----------
DEFERRED INCOME TAXES ................ 63,809 61,689
----------- -----------
OTHER LIABILITIES .................... 11,421 12,513
----------- -----------
SHAREHOLDERS' INVESTMENT:
Common stock, no par, $1.11 stated value,
authorized 500,000,000 shares; issued and
outstanding: 120,661,854 shares at
April 4, 1998 and 131,118,065 shares
at January 3, 1998 ................. 133,936 145,542
Paid-in capital ..................... 0 54,745
Cumulative translation adjustment ... (2,416) (620)
Retained earnings ................... 382,261 437,867
----------- -----------
TOTAL SHAREHOLDERS' INVESTMENT . 513,781 637,534
----------- -----------
TOTAL LIABILITIES AND SHAREHOLDERS'
INVESTMENT ................... $ 1,898,414 $ 1,967,614
=========== ===========
The accompanying notes are an integral part of these consolidated financial
statements.
4
<PAGE>
SHAW INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
THREE MONTHS THREE MONTHS
ENDED ENDED
April 4, March 29,
1998 1997
--------- ---------
NET SALES ............................... $ 864,985 $ 808,653
COSTS AND EXPENSES:
Cost of sales ......................... 646,114 608,563
Selling, general and administrative ... 168,148 167,397
Pre-opening expenses, retail operations 209 1,760
Interest expense, net ................. 15,227 13,728
Other expense(income), net ............ 2,633 (484)
--------- ---------
INCOME BEFORE INCOME TAXES .............. 32,654 17,689
PROVISION FOR INCOME TAXES .............. 13,368 7,624
--------- ---------
INCOME BEFORE EQUITY IN INCOME OF JOINT
VENTURE ................................ 19,286 10,065
EQUITY IN INCOME OF JOINT VENTURE ....... 219 683
========= =========
NET INCOME .............................. $ 19,505 $ 10,748
========= =========
DIVIDENDS PAID PER COMMON SHARE ......... $ 0.075 $ 0.075
========= =========
EARNINGS PER COMMON SHARE:
Basic and diluted basis - ............. $ 0.15 $ 0.08
========= =========
RETAINED EARNINGS:
Beginning of period ................... $ 437,867 $ 448,939
Add - net income ...................... 19,505 10,748
(Deduct) - dividends paid ............. (9,834) (9,983)
(Deduct) - purchase and retirement
of common stock ............ (65,277) --
--------- ---------
End of period ......................... $ 382,261 $ 449,704
========= =========
The accompanying notes are an integral part of these consolidated financial
statements.
5
<PAGE>
SHAW INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOW THREE MONTHS THREE MONTHS
(UNAUDITED AND IN THOUSANDS) ENDED ENDED
April 4, March 29,
1998 1997
--------- --------
OPERATING ACTIVITIES:
Net income ............................... $ 19,505 $ 10,748
--------- --------
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization .......... 20,960 23,727
Provision for doubtful accounts ........ 2,207 2,033
Deferred income taxes .................. 3,060 (930)
Other, net ............................. (4,499) (14,529)
Changes in operating assets and
liabilities, net of acquisitions:
Accounts receivable ............... (40,435) (7,470)
Inventories ....................... (51,110) (40,585)
Other current assets .............. 40,125 2,951
Accounts payable .................. 25,513 11,061
Accrued liabilities ............... 9,713 (4,117)
--------- --------
Total adjustments ............... 5,534 (27,859)
--------- --------
Net cash provided (used) by operating
Activities ............................ 25,039 (17,111)
--------- --------
INVESTING ACTIVITIES:
Additions to property, plant and equipment (19,828) (24,866)
Disposal of U.K. assets .................. (16,566) --
Acquisitions of business assets .......... -- (28,026)
--------- --------
Net cash used in investing activities .. (36,394) (52,892)
--------- --------
FINANCING ACTIVITIES:
Decrease in notes payable ................ (1) (38,605)
Increase in long-term debt ............... 132,611 88,147
Dividends paid ........................... (9,834) (9,983)
Purchase and retirement of common stock .. (133,630) --
Proceeds from exercise of stock options .. 2,001 153
--------- --------
Net cash (used)provided by financing
Activities ........................... (8,853) 39,712
--------- --------
NET (DECREASE)IN CASH AND CASH
EQUIVALENTS ............................. (20,208) (30,291)
CASH AND CASH EQUIVALENTS AT BEGINNING
OF PERIOD ............................... 43,571 49,581
========= ========
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 23,363 $ 19,290
========= ========
The accompanying notes are an integral part of these consolidated financial
statements.
6
<PAGE>
SHAW INDUSTRIES, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
---------------------------------------------------------------
1. Basis of Presentation
The financial statements included herein have been prepared by the Company,
without audit, pursuant to the rules and regulations of the Securities and
Exchange Commission. Certain information and footnote disclosures normally
included in financial statements prepared in accordance with generally accepted
accounting principles have been condensed or omitted pursuant to such rules and
regulations, although the Company believes that the disclosures are adequate to
make the information not misleading. These financial statements should be read
in conjunction with the financial statements and related notes contained in the
Company's 1997 Annual Report on Form 10-K. In the opinion of management, the
accompanying unaudited financial statements contain all adjustments necessary to
present fairly the Company's financial position, results of operations and cash
flow at the dates and for the periods presented. Interim results of operations
are not necessarily indicative of the results to be expected for a full year.
2. Inventories
The Company uses the last-in, first-out (LIFO) method of valuing
substantially all of its domestic inventories. If LIFO inventories were valued
at current costs, the inventories would have been $11,259,000 and $11,707,000
lower at April 4, 1998 and January 3, 1998, respectively. The Company's foreign
inventories and certain of its finished goods inventories, representing 20.2
percent of total inventories, are valued at the lower of first-in, first-out
(FIFO) cost or market.
3. Long-term Debt
In March 1998, the Company completed a new domestic revolving credit
facility which provides for borrowings of up to $1.0 billion and expires in
March 2003. The borrowings bear interest at variable rates equal to the London
Interbank Offered Rate (LIBOR) plus margins ranging from 0.220 percent to 0.750
percent, depending on the Company's consolidated funded debt to earnings ratio,
as defined. Fees associated with the domestic revolving credit agreement include
a facility fee on the committed amount ranging from 0.10 percent 0.25 percent.
The LIBOR-based rate at April 4, 1998 was 6.24 percent and borrowings
outstanding under this new facility totaled $898,000,000.
4. Purchase and Retirement of Common Stock
In March 1998, the Company purchased approximately 10,622,000 shares of its
common stock under a "Dutch Auction" tender offer at a purchase price of $12.50
per share which represented approximately 8.1 percent of its shares outstanding
at the time of the tender offer.
5. Disposal of Carpets International, Plc
On April 3, 1998 the Company completed the disposition of Carpets
International, Plc, the Company's wholly owned U.K. subsidiary which resulted in
a liquidation of certain assets, net of liabilities of $16.6 million. The
disposal resulted in a charge to earnings of $20,300,000, net of tax benefit,
which was recorded in the fourth quarter of the Company's year ended January 3,
1998.
6. Earnings Per Share
The Company adopted SFAS No. 128, "Earnings Per Share," effective January
3, 1998. Earnings per share for the quarter ended April 4, 1998 and March 29,
1997 have been computed based upon the weighted average shares and dilutive
potential common shares outstanding. The net income amounts presented in the
accompanying condensed consolidated statements of income represent amounts
available or related to shareholders.
7
<PAGE>
The following table reconciles the denominator of the basic and diluted
earnings per share computations:
<TABLE>
<CAPTION>
Three Months Ended
April 4, 1998 March 29, 1997
---------------------------------------------------- -------------- --------------
<S> <C> <C>
Weighted average common shares ..................... 128,902,035 133,041,617
Incremental shares from assumed
conversions of options under 1987 and
1992 incentive stock option plans .............. 394,059 443,681
---------------------------------------------------- ----------- -----------
Weighted average common shares and
dilutive potential common shares ............... 129,296,094 133,485,298
---------------------------------------------------- ----------- -----------
</TABLE>
7. Derivative Financial Instruments
The Company uses interest rate swaps to fix interest rates on current and
anticipated borrowings to reduce exposure to interest rate fluctuations. Under
existing accounting literature, these interest rate swaps are accounted for as
hedging activities. The net cash paid or received on interest rate hedges is
included in interest expense. The Company may also employ foreign currency
exchange contracts when, in the normal course of business, they are determined
to effectively manage and reduce foreign currency exchange fluctuation risk. At
April 4, 1998, the Company had no foreign currency exchange contracts
outstanding. The Company does not enter into financial derivatives for
speculative or trading purposes.
8. Comprehensive Income
Effective January 4, 1998, the Company adopted SFAS No. 130, "Reporting
Comprehensive Income," which requires additional disclosure of amounts
comprising comprehensive income. The Company has other comprehensive income in
the form of cumulative translation adjustments which resulted in total
comprehensive income of $17,709,000 and $11,363,000 for the quarters ended April
4, 1998 and March 29, 1997, respectively.
8
<PAGE>
SHAW INDUSTRIES, INC. AND SUBSIDIARIES
ITEM TWO-MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
- --------------------------------------------------------------------------------
GENERAL
The Company's business, as well as the U.S. carpet industry in general, is
cyclical in nature and is significantly affected by general economic conditions.
The level of domestic carpet sales tends to reflect fluctuations in consumer
spending for durable goods and, to a lesser extent, fluctuations in interest
rates and new housing starts. The Company's international operations are also
impacted by the economic climates in the markets in which they operate
(primarily the United Kingdom, Australia and Mexico). During the first quarter
of 1998, demand for the Company's domestic wholesale manufacturing business
improved substantially over that of the first quarter of 1997, while sales
prices were comparable and margins improved slightly. International markets
improved in late 1997 and the first quarter of 1998, but sales prices and
margins declined slightly in the first quarter of 1998 compared to the first
quarter of 1997.
During the quarter ended April 4, 1998 net sales for the Company's
residential retail and commercial contractor business totaled $221.1 million
compared to $197.9 million for the quarter ended March 29, 1997. At April 4,
1998 the Company has 351 residential retail and commercial contractor locations
throughout the United States. The Company believes that by combining the
resources of the manufacturer and retailer and developing a commercial contract
distribution network, it can provide a full range of products and services to
more effectively meet the needs of the end user of both residential and
commercial carpet products at significantly improved margins. As part of this
strategy, the Company continues its efforts to develop an alignment program with
dealers of both residential and commercial carpet products to provide a
collection of services, benefits and programs that will encourage dealers to
purchase more from the Company. At April 4, 1998, the Company has approximately
1,500 aligned dealers.
LIQUIDITY AND CAPITAL RESOURCES
At April 4, 1998, the Company had working capital of $685.4 million, a
decrease of $55.6 million, or 7.5 percent, from the working capital of $741.0
million at January 3, 1998. Cash and cash equivalents decreased $20.2 million
from $43.6 million at January 3, 1998 to $23.4 million at April 4, 1998. The
Company's operations generated cash flow of $25.0 million in the first quarter
of 1998, principally from net income of $19.5 million adjusted for depreciation
and amortization for $21.0 million, a decrease in other current assets of $40.1
million and an increase in accounts payable and accrued liabilities of $35.2
million, offset in part by increases in accounts receivable and inventories of
$91.5 million. In the first quarter of 1997, cash used by operating activities
was $17.1 million primarily as a result of increases in accounts receivable and
inventories of $48.1 million, offset in part by net income of $10.7 million
adjusted for depreciation and amortization $23.7 million. In the first quarter
of 1998, the Company's investing activities included additions to property,
plant and equipment, net of retirements, of $19.8 million and the liquidation of
Carpets International, Plc (U.K.) assets, net of liabilities, of $16.6 million
compared to additions to property, plant and equipment, net of retirements, of
$24.9 million and acquisitions of business assets of $28.0 million in the first
quarter of 1997. Cash used by financing activities for the first quarter of 1998
of $8.9 million included the purchase and retirement of common stock of $133.6
million and the payment of cash dividends of $9.8 million, offset in part by an
increase in long-term borrowings, net of payments, of $132.6 million and
proceeds from the exercise of stock options of $2.0 million. Cash flow provided
by financing activities for the first quarter of 1997 of $39.7 million included
an increase in long-term borrowings, net of payments, of $88.1 million, offset
in part by cash dividends of $10.0 million and payments on notes payable of
$38.6 million.
The Company has continued to maintain a strong working capital position.
Effective use of capital and the Company's ability to generate cash flow from
operations has enabled it to invest in technologies which reduce production
costs, generate operating margins that have historically exceeded industry
averages and implement its retail strategy.
Capital expenditures for property, plant and equipment, net of retirements
necessary to maintain the Company's facilities in a modern state-of-the-art
condition and expand its production capacity were $19.8 million for the three
months ended April 4, 1998. Management anticipates total capital expenditures
and capitalized lease obligations of approximately $50 million for the remainder
of 1998 to expand and upgrade its manufacturing and distribution equipment to
meet anticipated increases in sales volume, to improve efficiency and to upgrade
its current retail operations.
The Company's primary source of financing is an unsecured revolving credit
facility with a banking syndicate which provides for borrowings of up to $1.0
billion and expires in March 2003. Interest on borrowings under this facility is
currently based on LIBOR, and was 6.24 percent at April 4, 1998. At April 4,
1998, borrowings outstanding under this credit facility were $898.0 million.
9
<PAGE>
RESULTS OF OPERATIONS
Three Months Ended April 4, 1998 Compared To Three Months Ended March 29, 1997
Net sales increased $56.3 million, or 7.0 percent, to $865.0 million in the
first quarter of 1998. The increase was primarily attributable to incremental
net sales of $23.2 million related to the residential retail and commercial
contract business and an increase in the net sales volumes of $33.1 million for
the Company's wholesale manufacturing operations in both the domestic and
international markets. Gross margin as a percentage of net sales increased .6
percent to 25.3 percent in the first quarter of 1998 compared to the first
quarter for 1997, primarily due to improved sales product mix and increases in
the efficiency relationships of volume and fixed costs for the domestic
wholesale manufacturing business.
Selling, general and administrative expenses for the first quarter of 1998
were $168.1 million, or 19.4 percent of net sales, compared to $167.4 million,
or 20.7 percent of net sales, in the comparable period of 1997. Pre-opening
expenses related to the retail operations totaled $0.2 million for the first
quarter of 1998 compared to $1.8 million for the first quarter of 1997. Interest
expense, net increased to $15.2 million for the first quarter of 1998 from $13.7
million for the first quarter of 1997 as a result of higher borrowings.
The effective income tax rate for the first quarter of 1998 decreased to
40.9 percent compared to 43.1 percent for the first quarter of 1997 due to more
profitable foreign operations in 1998 which are taxed at a lower effective
income tax rate.
FOREIGN OPERATIONS
The Company's primary foreign operations are conducted through its
Australian subsidiaries, where the functional currency is Australian dollars.
Fluctuations in the value of foreign currencies create exposures which can
impact the Company's operating results. The Company may employ foreign currency
forward exchange contracts when, in the normal course of business, they are
determined to effectively manage and reduce such exposure. The Company does not
enter into foreign currency forward exchange contracts for speculative trading
purposes.
PART II - OTHER INFORMATION
ITEM ONE - LEGAL PROCEEDINGS
The Company is a party to several lawsuits incidental to its various
activities and incurred in the ordinary course of business. The Company believes
that it has meritorious claims and defenses in each case. After consultation
with counsel, it is the opinion of management that, although there can be no
assurance given, none of the associated claims, when resolved, will have a
material adverse effect upon the Company.
From time to time, the Company is subject to claims and suits arising in
the course of its business. The Company is a defendant in certain litigation
alleging personal injury resulting from personal exposure to volatile organic
compounds found in carpet produced by the Company. The complaints seek
injunctive relief and unspecified money damages on all claims. The Company has
denied any liability. The Company believes that it has meritorious defenses and
that the litigation will not have a material adverse effect on the Company's
financial condition or results of operations.
In June 1994, the Company and several other carpet manufacturers received a
grand jury subpoena from the Antitrust Division of the United States Department
of Justice relating to an investigation of the industry. In October, 1997, the
Company received formal notification from the Department of Justice that the
investigation has been closed. In December 1995, the Company learned that it was
one of six carpet companies named as additional defendants in a pending
antitrust suit filed in the United States District Court in Rome, Georgia. The
amended complaint alleges price-fixing regarding certain types of carpet
products in violation of Section 1 of the Sherman Act. The amount of damages
sought is not specified. If any damages were to be awarded, they may be trebled
under the applicable statute. The Company has filed an answer to the complaint
that denies plaintiffs' allegations and sets forth several defenses. In
September 1997, the Court issued an order certifying a nationwide plaintiff
class of persons and entities who purchased "mass production" polypropylene
carpet directly from any of the defendants from June 1, 1991 through June 30,
1995, excluding, among others, any persons or entities whose only purchases were
from any of the Company's retail establishments. Discovery began in November
1997. The Company is also a party to two consolidated lawsuits pending in the
Superior Court of the State of California, City and County of San Francisco,
both of which were brought on behalf of purported class of indirect purchasers
of carpet in the State of California and which seek damages for alleged
violations of California antitrust and fair competition laws. The Company
believes that it has meritorious defenses to plaintiffs' claims in the lawsuits
described in this paragraph and intends to defend these actions vigorously.
After consultation with counsel, it is the opinion of management that, although
there can be no assurance given, none of the claims described in this paragraph,
when resolved, will have a material adverse effect upon the Company.
10
<PAGE>
The Company is subject to a variety of environmental regulations relating
to the use, storage, discharge and disposal of hazardous materials used in its
manufacturing processes. Failure by the Company to comply with present and
future regulations could subject it to future liabilities. In addition, such
regulations could require the Company to acquire costly equipment or to incur
other significant expenses to comply with environmental regulations. The Company
is not involved in any material environmental proceedings.
At the end of the quarter ended April 4, 1998, there were no other pending
legal proceedings to which the Company was a party or to which any of its
property was subject which, in the opinion of management, were likely to have a
material adverse effect on the Company's business, financial condition or
results of operations.
ITEM TWO - CHANGES IN SECURITIES
None
ITEM THREE - DEFAULTS UPON SENIOR SECURITIES
None
ITEM FOUR - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None
ITEM FIVE - OTHER INFORMATION
None
ITEM SIX - EXHIBITS AND REPORTS ON FORM 8-K
(A) Exhibits
27 - Financial Data Schedule
Shareholders may obtain copies of Exhibits without charge upon written
request to the Corporate Secretary, Shaw Industries, Inc., Mail drop 061-22,
P.O. Drawer 2128, Dalton, Georgia 30722-2128.
(B) No reports on Form 8-K have been filed during the
fiscal quarter ended April 4, 1998.
11
<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.
SHAW INDUSTRIES, INC.
(The Registrant)
DATE: May 18, 1998 s/ Robert E. Shaw
- --------------------- -----------------
Robert E. Shaw
Chairman of the Board, Chief Executive
Officer and President
DATE: May 18, 1998 /s/ Kenneth G. Jackson
- --------------------- ----------------------
Kenneth G. Jackson
Vice President and Chief Financial Officer
(Principal Financial Officer)
12
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONDENSED CONSOLIDATED BALANCE SHEETS OF SHAW INDUSTRIES, INC. AND SUBSIDIARIES
AS OF APRIL 4, 1998 AND THE RELATED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
AND CASH FLOWS FOR THE THREE MONTHS ENDED APRIL 4, 1998 AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
NOTE: EARNINGS PER SHARE (E.P.S.) HAVE BEEN CALCULATED IN ACCORDANCE WITH FASB
128.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JAN-02-1999
<PERIOD-END> APR-04-1998
<CASH> 23,363,000
<SECURITIES> 0
<RECEIVABLES> 381,062,000
<ALLOWANCES> 17,961,000
<INVENTORY> 536,637,000
<CURRENT-ASSETS> 1,016,989,000
<PP&E> 1,351,326,000
<DEPRECIATION> 745,576,000
<TOTAL-ASSETS> 1,898,414,000
<CURRENT-LIABILITIES> 313,565,000
<BONDS> 0
0
0
<COMMON> 133,936,000
<OTHER-SE> 379,845,000
<TOTAL-LIABILITY-AND-EQUITY> 1,898,414,000
<SALES> 864,985,000
<TOTAL-REVENUES> 864,985,000
<CGS> 646,114,000
<TOTAL-COSTS> 646,114,000
<OTHER-EXPENSES> 168,783,000
<LOSS-PROVISION> 2,207,000
<INTEREST-EXPENSE> 15,227,000
<INCOME-PRETAX> 32,654,000
<INCOME-TAX> 13,368,000
<INCOME-CONTINUING> 19,286,000
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 19,505,000
<EPS-PRIMARY> .15
<EPS-DILUTED> .15
</TABLE>
