Mohawk Profits Fall 11 Percent in 2018

Mohawk Industries (Calhoun, Ga.) had a net income loss of 11 percent in fiscal 2018, falling from $972 million to $862 million.

The company’s net sales increased 5 percent during the period to $10.0 billion.

“After five consecutive years of record earnings, 2018 proved more difficult than we anticipated,” Mohawk Chairman and CEO Jeffrey Lorberbaum said in a statement, citing rising inflation and slowing markets for the decline in profits.

Mohawk’s fourth quarter 2018 profits dropped 4.6 percent compared with the fourth quarter of 2017 to $229 million, with net sales rising 3 percent to $2.45 billion.

“Even as we executed price increases in many products, our businesses experienced greater pressures on pricing and mix,” Lorberbaum said, noting that the company had decreased its manufacturing production during the quarter to adapt to the market’s slowing demand.

The company’s shares were $3.05 during the quarter, compared with $3.21 per share in the fourth quarter of 2017.