Mohawk Industries (Calhoun, Ga.) reported a net income of $122 million in the first quarter of 2019, a 42% decline from the same period in 2018, when the company earned $209 million.
Mohawk’s net sales during the quarter saw an increase of 1% year-over-year, growing to $2.44 billion. Sales in its North America segment fell 3% compared with the first quarter of 2018.
Mohawk Chairman and CEO Jeffrey S. Lorberbaum said in a statement that the first quarter results were in line with the company’s expectations for the quarter.
“Around the world, uneven demand impacted volume, increasing pressure on both price and mix,” Lorberbaum said. “We reduced our production rates to balance our inventories with our customers’ demand and manage our working capital.”
Lorberbaum added that the company is introducing new products to differentiate its offerings and enhance margins, and said the company has raised prices to offset energy and materials costs.
“We have replaced high-cost assets, consolidated inefficient operations, enhanced manufacturing processes and reduced our overhead expenses,” Lorberbaum said.
In February, the flooring giant announced that it would be restructuring its North American flooring segment into five separate business units.
Mohawk’s diluted earnings per share during the first quarter were $1.67, down from $2.78 in the first quarter of 2018. At press time, the company’s stock was trading at $129.94 per share.
Mohawk’s full first quarter report can be read here.
