Mohawk Year-End Revenue Up 5% and Earnings Up 8%
Calhoun, GA, February 9, 2018-Mohawk has released its year-end results for fiscal year 2017. Sales for the year were $9.5 billion, and net earnings were $972 million.
In the fourth quarter, sales were $2.4 billion, and net earnings were $240 million.
Mohawk made four acquisitions in 2017: two ceramic operations, one in Italy and one in Poland; a U.S. talc mine for ceramic raw materials; and a Bridgeport, Alabama nylon fiber plant formerly owned by Beaulieu.
For the business’ Global Ceramic segment, revenue increased 10%. The company opened 15 new Daltile showrooms in the U.S.; expanded its countertop business; and negotiated direct tile programs with national and regional homebuilders.
For the Flooring North America segment, revenue was up 3%, with margins up 13%. The company increased carpet prices in the fourth quarter of 2017, motivating some customers to pre-buy. Mohawk invested 2.5 million in an LVT line in Dalton, with production slated to start in Q2 2018. Residential business outperformed commercial last year, and the residential sales management for hard and soft surfaces was combined.
For the Flooring Rest of the World segment, revenue was up 18% (9% with constant currency).
Mohawk’s Belgian carpet tile plant started to produce product, and the company finalized acquisition of two European distributors.
In 2018, Mohawk will finalize its acquisition of Godfrey Hirst, the largest carpet producer in Australia and New Zealand. In addition, the Capex investment plan for 2018 is $750 million on existing businesses, plus $60 to $70 million on new operations. Mohawk’s global tax rate will decline 21% due to tax reform this year.