Operating Highlights

• Ceramic sales rose to $3.01 billion, an almost 13 percent increase from 2013. Adjusted operating income rose approximately 27 percent to $360 million.
• Our innovative new collections are leading the market shift to larger-sized planks and rectangles. We are expanding our Reveal Imaging^® ink jet technology to mosaic tiles, creating enhanced visuals that coordinate with our wall and floor tile.
• In our U.S. ceramic operations, we implemented an integrated brand strategy that provides distributors with a comprehensive product offering: Marazzi^® for high-end residential and American Olean^® for commercial and value-oriented residential. We also opened 16 American Olean and Marazzi combined sales service centers to service regions not supported by independent distributors.
• Our U.S. ceramic manufacturing operations added 50 million square feet of capacity, and we began construction of a new ceramic plant in Tennessee. This expansion supports manufacturing larger-format products and popular ceramic wood planks, as well as providing capacity to manufacture previously imported products.
• In Mexico, we are gaining share as we expand distribution of new products from our Salamanca plant and gain additional participation with more retailers and distributors.
• Our pan-European ceramic strategy has focused, in part, on broadening sales from the brand’s traditional base to faster-growing markets.
• In Russia, we introduced the largest new product collection in history, expanded distribution in the DIY and new construction channels, increased the number of mono-branded franchised retail stores to 320 and started a new production line to support future growth.