UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

	
FORM 8-K

CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): October 16, 2003

MOHAWK INDUSTRIES, INC.
(Exact name of registrant as specified in its charter)

Delaware
(State or other
Jurisdiction of
Incorporation)	01-19826
(Commission File
Number)	52-1604305
(IRS Employer
Identification No.)	
 	 	 	
160 South Industrial Blvd., Calhoun, Georgia 30701
(Address including zip code of principal executive offices)

(706) 629-7721
(Registrant's telephone number, including area code)	

Item  7.  Financial Statements, Pro Forma Financial Information and Exhibits.

C.    Exhibits

99.1 Press release dated October 16, 2003.

Item 12.  Results of Operations and Financial Condition.

On October 16, 2003, Mohawk Industries, Inc. issued a press release announcing its third quarter and nine months financial results. A copy of such press release is attached as Exhibit 99.1.

The information in this Form 8-K, including the exhibit attached thereto, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934,as amended, nor shall such information and exhibit be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.

 

 

SIGNATURE

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 duly authorized.
                                                                                                Mohawk Industries, Inc.	
                                                                                                        	
                  Date: October 16, 2003                                          By: /s/ FRANK H BOYKIN	
                                                                                                         Frank H. Boykin	
                                                                                                VP & Corporate Controller	

INDEX TO EXHIBITS

Exhibit

99.1.    Press release dated October 16, 2003

Exhibit 99.1

For Release:                         Immediately

Contact:                                John D. Swift, Chief Financial Officer

MOHAWK INDUSTRIES, INC. ANNOUNCES RECORD
QUARTERLY EARNINGS IN THIRD QUARTER

Calhoun, Georgia, October 16, 2003 - Mohawk Industries, Inc. (NYSE:MHK) today announced the highest quarterly net earnings in its history of $91,382,000 (12% above last year) and diluted earnings per share (EPS) of $1.36 (12% above last year) for the third quarter of 2003.  This compares to $81,560,000 in net earnings and $1.21 in EPS for the third quarter of 2002.  This improvement was the result of strong sales growth in the Dal-Tile segment, increased operating income and lower interest costs.  Net sales for the quarter increased 6% to $1,303,166,000 from $1,224,403,000 in 2002.  This increase was primarily the result of internal growth of both Mohawk and Dal-Tile products.  The Mohawk segment net sales of $967,405,000 in the third quarter of 2003 were up 4% from $927,299,000 due to improving sales across all product categories.  The Dal-Tile segment net sales of $335,761,000 in the third quarter of 2003 grew 13% from $297,104,000 primarily from internal growth.

Net earnings for the first nine months of 2003 were $208,007,000 (4% above last year), or $3.10 in EPS (1% below last year), compared to $200,288,000 in net earnings, or $3.13 in EPS, for the first nine months of 2002.  This improvement in net earnings is attributable to sales growth and operating earnings growth in the third quarter as well as the acquisition of Dal-Tile during the first quarter of 2002.  The reduction in EPS results from weak first quarter sales and higher raw material, energy and employee benefit costs during the period for the Mohawk segment.  Net sales for the first nine months increased 10% to $3,635,062,000 from $3,318,860,000.  This sales increase resulted primarily from the acquisition of Dal-Tile and hard surface internal growth.

In commenting on the third quarter results, Jeffrey S. Lorberbaum, President and CEO, stated, "The improvement in our third quarter was very encouraging and we believe somewhat indicative of the more optimistic outlook of most economists.  All of our product categories experienced positive revenue growth in the third quarter.  The Mohawk segment operating margin improved from 10.5% last year to 11.2%.  The Dal-Tile segment's reported operating income was $52,702,000, resulting in an operating margin of 15.7%.  Excluding the start up costs for the new Dal-Tile manufacturing facility (approximately $2,500,000), the Dal-Tile segment's operating income would have been $55,202,000, resulting in an operating margin of 16.4%, as compared to last year's operating margin of 15.8%.  The overall carpet industry is showing signs of improvement with the new home business continuing to lead other sectors within the carpet industry.   We believe the other segments of the floorcovering industry are also continuing to experience strong growth in new construction.

We were able to effectively manage our costs this quarter in spite of continuing high energy and raw material costs.  Price increases in carpet during the second quarter have improved our margins.  We have also controlled our general and administrative costs to lower levels. 

The acquisition of Lees Carpet continues on track to close in the fourth quarter of 2003.  We will integrate the financial and administrative systems into the Mohawk systems soon after closing.  Additionally, a team has been formed to consolidate the operating systems in 2004.  The Lees operation will continue under their existing management to focus on the unique product benefits that add value to their customers.  All functional groups are developing strategies to maximize the combined value we bring to our customers.  Our balance sheet is very strong with 26.5% debt to capitalization excluding $16,000,000 of cash on the balance sheet at the end of the current quarter.  The current available bank line of $700,000,000 will more than cover the approximate $352,000,000 needed for the Lees Carpet acquisition.  We believe the acquisition will be slightly accretive in 2004."

Currently the company does see improving trends in the carpet industry and continued growth in the hard surface products, but there is still some uncertainty as consumer confidence trends and employment statistics continue to be lackluster.  After considering these factors, the fourth quarter earnings forecast range is from $1.32 to $1.40 EPS.

Certain of the statements in the immediately preceding paragraphs, particularly anticipating future financial performance, business prospects, growth and operating strategies, proposed acquisitions, and similar matters, and those preceded by, followed by or that otherwise include the words "believes," "expects," "anticipates," "intends," "forecast," "estimates," or similar expressions constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended.  For those statements, Mohawk claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.  Those statements are based on many assumptions including assumptions regarding the Company's ability to maintain its sales growth and gross margins and to control costs.  These or other assumptions could prove inaccurate and therefore, there can be no assurance that the "forward-looking statements" will prove to be accurate.  Forward-looking statements involve a number of risks and uncertainties.  The following important factors affect the future results of Mohawk and could cause those results to differ materially from those expressed in the forward-looking statements: materially adverse changes in economic conditions generally in the carpet, rug and floorcovering markets served by Mohawk; competition from other carpet, rug and floorcovering manufacturers; raw material prices; timing and level of capital expenditures; the successful integration of acquisitions including the challenges inherent in diverting Mohawk's management attention and resources from other strategic matters and from operational matters for an extended period of time; the successful introduction of new products; the successful rationalization of existing operations; and other risks identified from time to time in the Company's SEC reports and public announcements.

Mohawk is a leading supplier of flooring for both residential and commercial applications and a producer of woven and tufted broadloom carpet, rugs and ceramic tile.  The Company designs, manufactures and markets premier carpet brand names, which include "Mohawk," "Karastan," "Aladdin," "Bigelow," "Custom Weave," "Durkan," "Galaxy," "Helios," "Horizon," "Mohawk Commercial," "World," and "Wunda Weve."  Mohawk offers a broad line of home products including rugs, throws, pillows and bedspreads under the brand names Aladdin, Goodwin Weavers, Karastan, Mohawk Home and Newmark.  Mohawk manufactures and distributes ceramic tile and natural stone products under the brand names Dal-Tile, Mohawk and American Olean.   Mohawk also offers other products that include laminate, wood and vinyl flooring and carpet padding under the Mohawk brand name.

There will be a conference call Friday, October 17, 2003 at 11:00 AM Eastern Time.

The telephone number to call is 1-800-603-9255.  A conference call

replay will also be available until Friday, October 24, 2003 by dialing 1-800-642-1687

for US/local calls and (706) 645-9291 for international calls and entering

Conference ID # 3374137.

DATES FOR FUTURE PRESS RELEASES AND CONFERENCE CALLS:
 	PRESS RELEASE	CONFERENCE CALL	 	
4th QUARTER 2003	FEBRUARY 5, 2004	FEBRUARY 6, 2004	11:00 AM (800-603-9255)	
1st QUARTER 2004	APRIL 21, 2004	APRIL 22, 2004	11:00AM  (800-603-9255)	
2nd QUARTER 2004	JULY 21, 2004	JULY 22, 2004	11:00AM (800-603-9255)	
3rd QUARTER 2004	OCTOBER 21, 2004	OCTOBER 22, 2004	11:00AM (800-603-9255)	

MOHAWK INDUSTRIES, INC. AND SUBSIDIARIES	 	 	 	 	 	 	
 	 	 	 	
Consolidated Statement of Earnings Data	Three Months Ended	 	Nine Months Ended	
(Amounts in thousands, except per share data)	September 27, 2003	 	September 28, 2002	 	September 27, 2003	 	September 28, 2002	
 	 	 	 	
Net sales	 $              1,303,166 	 	                 1,224,403 	 	                 3,635,062 	 	                 3,318,860 	
Cost of sales	                    938,280 	 	                    883,000 	 	                 2,655,277 	 	                 2,422,174 	
    Gross profit	                    364,886 	 	                    341,403 	 	                    979,785 	 	                    896,686 	
Selling, general and administrative expenses	                    205,482 	 	                    197,779 	 	                    612,120 	 	                    538,229 	
    Operating income	                    159,404 	 	                    143,624 	 	                    367,665 	 	                    358,457 	
Interest expense	                      14,162 	 	                      16,426 	 	                      41,347 	 	                      42,377 	
Other (income) expense, net	                        1,333 	 	                        1,634 	 	                      (1,252)	 	                        2,139 	
    Earnings before income taxes	                    143,909 	 	                    125,564 	 	                    327,570 	 	                    313,941 	
Income taxes	                      52,527 	 	                      44,004 	 	                    119,563 	 	                    113,653 	
    Net earnings	 $                   91,382 	 	                      81,560 	 	                    208,007 	 	                    200,288 	
Basic earnings per share	 $                       1.38 	 	                          1.22 	 	                          3.14 	 	                          3.19 	
Weighted-average shares outstanding	                      66,260 	 	                      66,824 	 	                      66,167 	 	                      62,855 	
Diluted earnings per share	 $                       1.36 	 	                          1.21 	 	                          3.10 	 	                          3.13 	
Weighted-average common and dilutive	 	 	 	 	 	 	 	
     potential common shares outstanding	                      67,222 	 	                      67,683 	 	                      67,017 	 	                      64,086 	
 	 	 	 	
Other Financial Information	 	 	 	
(Amounts in thousands)	 	 	 	
 	 	 	 	
Depreciation & amortization	 $                   26,006 	 	                      25,024 	 	                      77,444 	 	                      75,500 	
Capital expenditures	 $                   26,498 	 	                      26,831 	 	                      80,323 	 	                      74,072 	
 	 	 	 	
Consolidated Balance Sheet Data	 	 	 	
(Amounts in thousands)	 	 	 	
 	 	 	 	 	September 27, 2003	 	September 28, 2002	
ASSETS	 	 	 	
Current assets:	 	 	 	
    Cash	 	 	 	 	 $                   16,360 	 	                               - 	
    Receivables	 	 	 	 	                    602,867 	 	                    569,567 	
    Inventories	 	 	 	 	                    830,291 	 	                    742,647 	
    Prepaid expenses	 	 	 	 	                      29,786 	 	                      22,732 	
    Deferred income taxes	 	 	 	 	                      82,074 	 	                      83,056 	
        Total current assets	 	 	 	 	                 1,561,378 	 	                 1,418,002 	
Property, plant and equipment, net	 	 	 	 	                    859,066 	 	                    843,782 	
Goodwill	 	 	 	 	                 1,290,666 	 	                 1,277,453 	
Other assets	 	 	 	 	                    167,325 	 	                    165,916 	
 	 	 	 	 	 $              3,878,435 	 	                 3,705,153 	
LIABILITIES AND STOCKHOLDERS' EQUITY	 	 	 	 	 	 	 	
Current liabilities:	 	 	 	 	 	 	 	
Current portion of long-term debt	 	 	 	 	 $                   25,998 	 	                      42,366 	
Accounts payable and accrued expenses	 	 	 	 	                    688,995 	 	                    681,299 	
        Total current liabilities	 	 	 	 	                    714,993 	 	                    723,665 	
Long-term debt, less current portion	 	 	 	 	                    762,801 	 	                    903,104 	
Deferred income taxes and other long-term liabilities	 	 	 	 	                    210,045 	 	                    180,890 	
        Total liabilities	 	 	 	 	                 1,687,839 	 	                 1,807,659 	
Total stockholders' equity	 	 	 	 	                 2,190,596 	 	                 1,897,494 	
 	 	 	 	 	 $              3,878,435 	 	                 3,705,153 	
 	 	
Segment Information	As of or for the Three Months Ended	 	As of or for the Nine Months Ended	
(Amounts in thousands)	September 27, 2003	 	September 28, 2002	 	September 27, 2003	 	September 28, 2002	
 	
Net sales:	 	
    Mohawk	 $                 967,405 	 	                    927,299 	 	                 2,702,261 	 	                 2,704,204 	
    Dal-Tile	                    335,761 	 	                    297,104 	 	                    932,801 	 	                    614,656 	
        Consolidated net sales	 $              1,303,166 	 	                 1,224,403 	 	                 3,635,062 	 	                 3,318,860 	
 	 	
Operating income:	 	
    Mohawk	 $                 108,499 	 	                      97,594 	 	                    235,053 	 	                    266,714 	
    Dal-Tile	                      52,702 	 	                      46,955 	 	                    137,749 	 	                      95,258 	
    Corporate and eliminations	                      (1,797)	 	                         (925)	 	                      (5,137)	 	                      (3,515)	
        Consolidated operating income	 $                 159,404 	 	                    143,624 	 	                    367,665 	 	                    358,457 	
 	 	
Assets:	 	 	
    Mohawk	 	 $              1,777,780 	 	                 1,733,632 	
    Dal-Tile	 	                 1,966,519 	 	                 1,839,261 	
    Corporate and eliminations	 	 	 	 	                    134,136 	 	                    132,260 	
        Consolidated assets	 	 	 	 	 $              3,878,435 	 	                 3,705,153