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MOHAWK INDUSTRIES ANNOUNCES RECORD FIRST QUARTER EARNINGS

 ATLANTA, April 21 /PRNewswire/ -- Mohawk Industries, Inc. (NASDAQ: MOHK) today announced net earnings for the quarter ended April 3 of $2,146,000, compared to a loss of $139,000, after preferred stock dividends for the same quarter of 1992.
 Earnings per common and common equivalent shares were $.17 compared to a loss of $.02 per share after preferred stock dividends for the prior year. Mohawk stated that these net earnings were the highest ever recorded by the company in the first quarter which is traditionally the slowest quarter of the year for the carpet industry as a whole, and was the eighth consecutive quarter of improvement in earnings before extraordinary charges compared to the corresponding quarter of the prior year.
 Net sales for the quarter increased 120 percent to $140,453,000 compared to $63,976,000 for the first quarter 1992. This sales increase was attributed to both the impact of the Horizon Industries, Inc. acquisition and increases in sales volume. All information with respect to the three months ended March 28, 1992, has been restated to reflect the adoption of FAS No. 109.
 On March 8, Mohawk announced that it had signed an agreement to acquire all of the outstanding capital stock of American Rug Craftsmen, Inc. and an affiliated company, Burton Carpet and Rug Inc., both of which are owned by the same shareholders. American Rug Craftsmen and Burton Carpet and Rug had combined revenues of approximately $40 million in 1992. It is anticipated that the acquisition will be completed the last week of April.
 On April 2, Mohawk announced that it had filed a Registration Statement with the Securities and Exchange Commission covering a proposed offering of 2 million shares of its common stock, of which 1,500,000 will be offered by the company and the balance by certain selling shareholders. The company will grant to the underwriters an option to purchase up to 300,000 additional shares solely to cover over- allotments in the offering. The managing underwriters of the offering are The First Boston Corporation, Kidder, Peabody & Co. Incorporated and Wheat First Butcher & Singer Capital Markets.
 In commenting on the first quarter performance, David L. Kolb, chairman and CEO, stated: "The favorable impact of Horizon on first quarter earnings is very encouraging. As we previously announced, the integration is progressing ahead of schedule. We are also excited about the imminent acquisition of American Rug Craftsmen. We believe the household rugs and mats of American Rug Craftsmen will nicely complement our traditional product line."
 Mohawk, the third-largest carpet manufacturer in the world, is a leading producer of both woven and tufted broadloom carpeting for residential and commercial applications. Its production facilities are fully integrated from yarn preparation through finished goods. The company markets a wide variety of styles, primarily in the medium- to high-price points under its brand names: Mohawk, Alexander Smith, Horizon, Harbinger and Helios.
 NOTE: There will be a conference call Thursday, April 22, at 9:15 a.m. EDT. The telephone number to call is 800-275-3939.
 MOHAWK INDUSTRIES, INC. AND SUBSIDIARIES
 CONSOLIDATED STATEMENT OF OPERATIONS DATA
 (Amounts in thousands except per share data)
 (Unaudited)
 3 mos. ended 4/3/93 3/28/92(a)
 Net sales $140,453 $ 63,976
 Costs and expenses 136,876 63,991
 Earnings (loss) before income taxes 3,577 (15)
 Net earnings (loss) 2,146 (9)
 Preferred stock dividends --- (130)
 Net earnings (loss) after preferred
 stock dividends $ 2,146 $ (139)
 Earnings (loss) per common and common
 equivalent share $ 0.17 $ (0.02)
 Weighted average common and common
 equivalent shares outstanding 12,349 7,350
 CONSOLIDATED BALANCE SHEET DATA
 (Amounts in thousands)
 (Unaudited)
 ASSETS 4/3/93 3/28/92(a)
 Total current assets $189,997 $ 83,494
 Net property, plant and equipment 110,456 37,726
 Other assets 22,495 3,190
 Total assets $322,948 $124,410
 LIABILITIES AND COMMON STOCKHOLDERS' EQUITY
 Total current liabilities $101,003 $ 43,913
 Long-term debt 106,540 55,379
 Deferred income taxes and other
 long-term liabilities 26,447 8,380
 Total liabilities 233,990 107,672
 Redeemable preferred stock --- 3,157
 Total common stockholders' equity 88,958 13,581
 Total liabilities and common
 stockholders' equity $322,948 $124,410
 (a) On Jan. 1, the company adopted FAS No. 109, Accounting for Income Taxes, which changed the company's method of accounting for income taxes from the deferred method to the liability method. The company applied the provisions of FAS No. 109 retroactively to Jan. 1, 1989. The effect of adopting FAS No. 109 was to increase the net loss after preferred stock dividends and the loss per share by $42,000 and $0.01, respectively, for the quarter ended March 28, 1992. Additionally, at March 28, 1992, property, plant and equipment and deferred income taxes were increased by $1,341,000 and $3,397,000, respectively, and retained earnings were decreased by $2,041,000 as a result of adopting FAS No. 109.
 -0- 4/21/93
 /CONTACT: John D. Swift, vice president-Finance of Mohawk Industries, 404-951-6000/
 (MOHK)


CO: Mohawk Industries, Inc. ST: Georgia IN: TEX SU: ERN

BR-BN -- AT006 -- 8599 04/21/93 10:09 EDT
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