Mohawk Revenue up 0.3% Globally, Down 7% in N. America in Q2
Calhoun, GA, July 26, 2019--Mohawk Industries, Inc. (NYSE: MHK) announced that the net sales for the second quarter of 2019 were
Net earnings increased to $202 million in Q2 2019 from $197 million in Q2 2018--up 2.5%
During the quarter, its Flooring North America segment’s sales decreased 7%. The segment’s operating margin was 6% as reported.
For the quarter, its Global Ceramic Segment sales increased 3% as reported and 5% on a constant currency and days basis. The segment’s operating margin was 12% as reported, declining YOY due to inflation, temporary shutdown costs and marketing investments partially offset by productivity.
For the quarter, its Flooring Rest of the World segment’s sales increased 9% and 15% on a constant currency basis. The segment’s operating margin was 16% and 17% on an adjusted basis, due to volume growth and lower inflation partially offset by price and mix.
Commenting on Mohawk Industries’ second quarter performance, Jeffrey S. Lorberbaum, Chairman and CEO, stated, “Most markets we operate in remain soft, with pressure on volume and pricing, and we anticipate the environment to remain difficult."
Of North American results, the company says, "Relative to last year, sales were softer in most categories as customers traded down, and price increases were offset by a declining product mix. We have made significant progress on our cost improvement actions, including replacing inefficient extrusion and closing four higher cost operations. Residential carpet sales have declined, and lower cost polyester carpet is taking share and impacting our mix. We are increasing our promotional activity, and we have introduced new products to defend our market position. Our commercial carpet tile business continues to grow as we introduce innovative styling as well as new pattern technologies. Our water-proof laminate products with enhanced visuals and textures are improving our mix and average selling price. We are adding our unique water-proof technology to all of our production lines and upgrading our HDF manufacturing to increase our capacity and reduce our cost. We are making substantial progress with our LVT manufacturing, with production increasing more than 30% in the period. As we proceed through the year we anticipate further improvement in production and cost, as well as introducing new features that are being developed in
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