Calhoun, GA-based Mohawk Industries buys Foss Floors and other business news

Mohawk Industries buys Foss Floors

The world’s largest flooring maker is buying three more factories in northwest Georgia to help expand its residential rug and carpet business.

Mohawk Industries, based in Calhoun, Georgia, announced last week that it had reached an agreement to buy Foss Floors, which it will merge with the Mohawk Home business.

Founded in 1954, Foss sells products to national home centers and other manufacturers that differentiate themselves from traditional tufted and woven construction. Mohawk said the addition of nonwoven production will provide a felt-like surface that can be used for interior or exterior applications. Foss will retain its current management team, led by Brian Warren.

In a joint memo to employees, Mohawk Flooring North America President Paul De Cock and Mohawk Home President Rocky Casteel said Foss “has a great team of people” and “we think it will be a great complement to our existing Mohawk Home business.

“We have witnessed their commitment to customers, product innovation, safety and sustainability; and we are confident this will be a successful partnership, with many opportunities to learn from each other as we go. progress,” De Cock and Casteel said in a statement. “In every product category, we are committed to being the best in the industry, to delighting our customers with quality and service, and to providing a full range of flooring solutions for today’s consumer.”

Delta Air Lines orders Boeing 737 MAX

Delta Air Lines is adding the Boeing 737 MAX to its fleet with an order for 100 of the jets.

Delta has ordered the 737 MAX 10, the largest model in the MAX family, along with an option for 30 other aircraft. Narrowbody jets to be delivered from 2025 will be used to replace older, less fuel-efficient planes in Delta’s fleet of more than 800 planes.

It is Delta’s first Boeing order in about a decade, after the airline turned its attention to European aircraftmaker Airbus with a series of major orders in recent years. The 100 737-10s are worth around $13.5 billion based on their list price, although airlines typically negotiate steep discounts for bulk orders.

However, the 737-10 has still not been certified by the Federal Aviation Administration. Aviation Week reported this month that Boeing could cancel its development of the 737-10 if Congress does not extend the deadline for modifying the cockpit alert system. Delta said it expects the 737-10 to be certified in 2023, but it may switch its order to another model in the MAX jet family if there is a delay.

The uncertainty comes after the Boeing 737 MAX was grounded for nearly two years following two fatal crashes. Delta was one of the only major US carriers at the time that did not fly MAX aircraft. The Federal Aviation Administration in 2020 cleared the jet to return to the skies after a 20-month review and changes to design, software and training.

“These new aircraft offer superior operating economics and network flexibility, and the agreement reflects our cautious approach to deploying our capital,” Delta CEO Ed Bastian said in a written statement. The airline plans to fly the 737-10 from its hubs in Atlanta, New York, Boston, Detroit, Minneapolis-St. Paul, Seattle and Los Angeles.

Bank of America profits fall 32%

Bank of America’s second-quarter profits fell 32%, the latest major U.S. bank to report lower profits after a strong 2021.

But the nation’s second-largest bank still posted higher revenue this quarter, rising from $21.5 billion to $22.7 billion year-over-year, largely due to higher interest rates and an increased level of lending.

Quarterly profit fell to $6.2 billion, or 73 cents per share, the bank said Monday, from profit of $9.2 billion, or $1.03 per share, in the same period a year earlier.

Earnings surged last year after the bank released billions of dollars from its loan loss reserves, which are money the bank has set aside during the pandemic to cover potentially bad loans.

JPMorgan Chase, Wells Fargo and Citigroup all reported double-digit profit declines last week, citing similar reasons.

FirstBank’s profits fall in the 2nd quarter

FB Financial Corp., the Nashville-based parent company of FirstBank, reported lower second-quarter earnings due to the winding down of one of its mortgage programs.

The Nashville-based bank holding company, which operates the Chattanooga metro area’s sixth-largest bank, reported net income of $19.3 million, or 41 cents per diluted common share, in the three months ended June 30. That was less than half of the bank’s profit in the same period a year ago and 44.6% less in net profit than in the previous quarter. Results reported in the second quarter were impacted by mortgage restructuring charges of $12.5 million related to the previously announced reduction in the direct-to-consumer mortgage delivery channel and a loss of $2 million from changes in the fair value of commercial loans held for sale. wallet.

Adjusted net income was $30.1 million, or 64 cents per diluted common share, compared to 88 cents per diluted common share in the same quarter last year. Despite declining earnings, FirstBank Chairman Chris Holmes said “the main bank delivered exceptional loan growth, good growth in non-interest bearing deposits and strong credit metrics.”

“Our strong capital ratios and core earnings momentum position us well for potential economic headwinds over the coming quarters,” Holmes said in second-quarter earnings released Monday.

Yellen challenges China for its trade practices

Treasury Secretary Janet Yellen said the United States and South Korea should deepen their trade relationship to avoid working with countries that unfairly use their market positions. And she called China by name.

In remarks prepared for delivery on Monday, she said countries like China could not be allowed to use their market position in key commodities, technologies or products “to disrupt our economy or exert a knock-on effect.” unwanted geopolitical leverage”.

Yellen represented the United States at Group of 20 finance ministers’ meetings on the Indonesian resort island of Bali and made stops in Tokyo, Japan, and Seoul, South Korea. She avoided visiting China.

— Compiled by Dave Flessner

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