Mohawk Reports Q1 Sales Decline of 6.4% YOY, Net Earnings Down 9%
Calhoun, GA, May 5, 2020-Mohawk Industries reported net sales of $2.3 billion for Q1 2020, a 6.4% decline year over year.
Net earnings for Q1 2020 were $111 million, a 9% decline year over year.
For the quarter, Flooring North America Segment’s sales decreased 8%, and Global Ceramic Segment sales declined 6%. For the quarter, Flooring Rest of the World Segment’s sales decreased 5%.
Commenting on Mohawk Industries’ Q1 performance, Jeffrey S. Lorberbaum, chairman and CEO, stated, “The world changed during the first quarter, and we are now managing through an unprecedented situation…We recently obtained a $500 million term loan to expand our liquidity to $1.3 billion after we pay off a €300 million note this month. With no other maturities in 2020, we have liquidity to manage through the downturn and strengthen our position when the economy recovers. We are reducing capital expenditures, cutting non-essential expenses and putting our stock purchases on hold until the environment improves.
“Until the COVID-19 outbreak, our results for the quarter were in line with our plan, as we benefited from the initiatives we implemented in 2019. As we progressed through the period, government actions to reduce the spread of the virus impacted all our markets, with some shutting down retail and manufacturing operations. Across all of our markets, demand has dropped dramatically, with residential remodeling being impacted the most up to this point and DIY products performing best, as some people started projects while staying home.”
The company reports that, "At the end of April, with most people sheltering in place across the world, our sales rate is about 35% below the prior year, and we cannot predict the pace at which it will recover."