Mohawk Industries’ (Calhoun, Ga.) net earnings dropped 15 percent during the third quarter of 2018 compared with the same period last year, falling from $270 million to $227 million.
The company’s diluted earnings per share also fell short of expectations during the quarter, declining from $3.61 to $3.02.
Mohawk’s net sales increased 4 percent to $2.5 billion during the quarter.
“Sales growth in all segments was lower than our estimates, price increases had less impact and we experienced more inflation than predicted,” Mohawk Chairman and CEO Jeffrey Lorberbaum said in a statement, adding that transportation costs also continued to rise during the period.
Lorberbaum said the company anticipates a decline in the upcoming fourth quarter sales compared with the same period last year as well.
“Even with price increases across the company, we will not offset inflation, and our results will remain under pressure,” he stated.
Mohawk’s shares tumbled 16 percent following the company’s earnings announcement, according to MarketWatch.
The company’s full third quarter earnings report can be read here.
