Georgia's top public companies are doing OK, despite economic malaise

Like airlines, the carpet and flooring industry has been hard hit by the economy. But Mohawk Industries shrank its loss in the first nine months of 2009 to $25.2 million, or 37 cents per share. That's from a loss of $1.3 billion, or $19.45 per share, in last year's comparable period.

Mohawk, in its most recent quarter, said business conditions continue to be weak. While the commercial side of operations is expected to remain down into next year, the company said, the residential business unit is stabilizing.

Like other companies, Mohawk is cutting internal costs, which it says will help both in the short term, by reducing expenses, and make it more nimble to take advantage of the economic rebound when it comes.

That's the stance many big firms are taking, said Jon Winsett, a corporate expense expert and chief executive of NPI Financial. The Atlanta-based consulting firm, which counts 50 of the Fortune 500 firms among its clients, counsels companies on outsourcing, contract-cost reduction and other ways to trim expenses.

Companies, Winsett said, aren't looking to just cut willy-nilly. What they're looking at is making strategic cuts and investments in technology to better position themselves for the turnaround, he said.

"They've already plucked the low-hanging fruit," he said. "Now, everyone is focused on post-recession. They want to hit the ground running, and they don't want to be caught flat-footed when the economy rebounds."

Part of that means increasing spending this year by purchasing hardware and software, and modernizing their technology infrastructure, Winsett said.

They also are looking at buying out competitors. Genuine Parts, whose units include NAPA auto parts and S.P. Richards office products, has been focused on acquisitions. The company has taken over six firms this year and says it will continue to look at strategic acquisitions in the fourth quarter.

"Everyone is focused on how they can compete effectively," Winsett said. "One thing that we see is that they're trying to put as much as they can into expenses this year. They're buying a lot.

"They can tighten belts but for so long," he added. "There's optimism, and it's not gloom and doom."

COMPANY

HOME DEPOT

UPS

COCA-COLA CO.

DELTA AIR LINES

COCA-COLA ENTERPRISES

SOUTHERN CO.

AFLAC

SUNTRUST BANKS

GENUINE PARTS

AGCO

MOHAWK INDUSTRIES

9-MONTH PERFORMANCE CURRENT YEAR

Profit $2.3 billion /$1.37 per share

Profit$1.39 billion/$1.39 per share

Profit $5.3 billion/$2.27 per share

Loss ($1.21 billion)/($1.47) per share

Profit $621 million/$1.26 per share

Profit $1.39 billion/$1.77 per share

Profit $1.2 billion/$2.66 per share

Loss ($1.3 billion)/($3.41) per share

Profit $300 million/$1.88 per share

Profit $102.2 million/$1.09 per share

Loss ($25.2 million)/(37 cents) per share

9-MONTH PERFORMANCE PRIOR YEAR

Profit $2.3 billion/$1.37 per share

Profit $2.7 billion/$2.67 per share

Profit $4.86 billion/$2.06 per share

Loss ($7.48 billion)/(18.91) per share

Loss ($2.9 billion)/($6.07) per share

Profit $1.55 billion/$2.02 per share

Profit $1 billion/$2.22 per share

Profit $1.1 billion/$3.19 per share

Profit $387.6 million/$2.36 per share

Profit $287.4 million/$2.91 per share

Loss ($1.3 billion)/($19.45) per share

OUTLOOK

Expects total sales for the year to be down about 9 percent

Projects fourth-quarter profits of between 58 cents and 65 cents per share

Focused on growing currency-neutral revenue, expanding margins and investing back into the business. Expects slow recovery in consumer sentiment about the economy.

Expects to end the year with $5.8 billion in unrestricted liquidity, including $5.5 billion in cash. Projects $700 million in merger-related savings.

Raised full-year earnings expectations to $1.54 to $1.57 per share.

Sees signs of stabilization and beginning of a recovery in some sectors.

Projects new premium sales in the U.S. will not meet objective of flat to 5 percent increase this year, but the company overall expects to meet guidance of 13 percent to 15 percent increase of operating earnings for the full year.

Earnings will lag behind economy because pace of recovery is uncertain.

Remains focused on strategic acquisitions. May deploy cash buyback shares.

Generally, weak global economy will dampen demand for farm equipment in the fourth quarter, though in Brazil, demand has started to stabilize because of government finance incentives.

Economic conditions remain weak, but residential business has begun to stabilize.