Mohawk Reports Net Loss of $48 Million for Q2, Sales Down 21%
Calhoun, GA, August 7, 2020-Mohawk announced a Q2 2020 net loss of $48 million, compared to earnings of $202 million in Q2 2019. Net sales for Q2 2020 were $2.0 billion, a 21% decline YOY, compared to net sales of $2.6 billion in Q2 2019.
Net sales for the global ceramic segment declined 21% in Q2 2020 to $753 million from $958 million in Q2 2019.
Flooring North America sales fell 19% in Q2 2020 to $800 million from $983 million in Q2 2019.
Flooring Row (Rest of World) slid 23% to $496 million in Q2 2020 from $643 million in Q2 2019.
First the first half of 2020, net earnings were $62 million, a decline of 81% compared to $324 million in the first half of 2019. For the 2020 six-month period, net sales were $4.3 billion, a decrease of 14% versus prior year’s $5.0 billion.
Global ceramic sales declined 14% to $1.6 billion in the first half of 2020, from $1.9 billion in the first half of 2019.
Flooring North America sales slid 14% to $1.6 billion in the first half of 2020, from $1.9 billion in the first half of 2019.
Flooring ROW sales were down 14% to $1.1 billion in the first half of 2020, from $1.3 billion in the first half of 2019.
Commenting on Mohawk Industries’ second quarter performance, Jeffrey S. Lorberbaum, Chairman and CEO, stated, “Though sales trends have improved significantly since government restrictions were lifted, the current environment is the most unpredictable in the history of our business. During the quarter, all of our businesses were dramatically impacted, with most of our customers and facilities operating either in a limited capacity or completely shut down for some time. After the company’s sales bottomed in April, our markets improved more than we expected, and shipments exceeded our production rates, reducing our inventories. Our manufacturing levels were impacted by government restrictions, Covid disruptions and employee absenteeism across the enterprise.
“At this time, our visibility into the future continues to be uncertain due to the persistent Covid spread and the unknown strength of the economic recovery. Some near-term factors represent a potential upside, including historically low interest rates, rising remodeling activity, consumer discretionary funds being shifted to home improvements and increasing home purchases. Alternately, potential changes in government policies, consumer and business spending and higher Covid infection rates could reduce demand around the world, particularly if governments increase restrictions. Given these factors, our business plans must remain flexible to quickly adjust our production levels.
"We are restructuring our business to enhance our results and our future performance. We are reducing SG&A, headcount and lower performing products and SKUs. We are closing less efficient operations and investing in more productive equipment. The largest of these changes are in the
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