Mohawk Profits Up 15% in Q4 as It Reduces Ownership of Wood Production

Mohawk Industries (Calhoun, Ga.) reported a net earnings increase of 15% in the fourth quarter of 2019, climbing from $229 million to $265 million, but for the 12 months ending Dec. 31, 2019, the company reported net earnings of $744 million, a 13% decrease compared with 2018’s $862 million. Net sales declined 1.0% compared with the fourth quarter of 2018, falling to $2.4 billion, and year-over-year sales remained flat at $9.9 billion.

Mohawk’s North America segment’s sales fell 4% during the quarter. The company’s earnings per share declined 10% year-over-year to $10.30.

Mohawk Chairman and CEO Jeffrey Lorberbaum said the company decreased its ceramic production and is taking out wood flooring plants in the U.S. and Europe to reduce costs.

“We have executed many initiatives to align the business with the present conditions, including closing three plants, consolidating high-cost operations and reducing wood manufacturing,” Lorberbaum said in a statement. “The effects of these actions will increase and flow through inventory with full cost benefit in the third quarter of 2020.”

Mohawk completed the sale of its solid and engineered flooring operations in Melbourne, Ark., to Beasley Flooring Products in early February. The company will work with Beasley to continue providing wood flooring products to its customers. Mohawk said it also consolidated its wood manufacturing facility in Malaysia to improve costs.

The full report can be found here.