Mohawk Industries (Calhoun, Ga.) reported a net income of $156 million in the third quarter of 2019, a 31% decline compared with the same period in 2018, when the company earned $227 million.
The company’s net sales during the quarter decreased 1% compared with the third quarter of 2018, falling to $2.51 billion. Its diluted earnings per share fell 29% year-over-year to $2.15.
Mohawk Chairman and CEO Jeffrey Lorberbaum said the company is not satisfied with its third quarter performance, but that the results were in line with expectations.
“As anticipated, our U.S. businesses presented the greatest challenge during the period given soft retail demand, the impact of LVT, a stronger dollar and excess ceramic industry inventories,” he said in a statement. “Trends in our other major markets weakened, creating a more competitive environment.”
Anticipating the current market conditions to continue, the company is investing more in sales and marketing, reducing inventory levels, expanding product offerings and entering new categories.
“Next year, our business will benefit from our new products, higher utilization of our start-ups and cost reductions we have taken during 2019,” Lorberbaum said.
Mohawk's full third quarter report can be read here.
