Mohawk Industries Reports Q1 Results
Mohawk Industries announced its first quarter 2019 results, with net sales reaching $2.44 billion. The company reported a net profit of $122 million.
CALHOUN, Ga. – Mohawk Industries reported first quarter 2019 results in line with the high end of expectations amid a challenging economic environment. The company posted a net profit of $122 million, or $1.67 per diluted share. Adjusted net earnings were $154 million, or $2.13 per share, excluding restructuring, acquisition, and other charges.
Net sales for the first quarter were $2.44 billion, a 1% increase as reported and a 6% increase on a constant currency and days basis. In the first quarter of 2018, net sales were $2.41 billion.
Chairman and CEO Jeffrey S. Lorberbaum stated that economies weakening in most regions and a stronger U.S. dollar impacted translated results. While U.S. housing markets started softer and higher input costs increased expenses, both show signs of improvement heading into the second quarter. Uneven demand globally affected volume, increasing pressure on price and mix, prompting the company to reduce production rates to balance inventories.
The company is implementing actions to adapt to the current environment, including introducing new products and raising prices to offset higher energy and material costs. Manufacturing processes have been enhanced, and overhead expenses reduced. The Global Ceramic segment's sales increased 7% on a constant currency basis, though operating margin declined due to inflation and investments. Flooring North America segment sales decreased 3%, with operating income near zero due to lower volume and high material costs.