Mohawk Industries (Calhoun, Ga.) reported net earnings of $110 million in the first quarter of 2020, a 9.1% decline compared with the same period last year.
Net sales dropped 6.4% to $2.3 billion during the quarter.
“The world changed during the first quarter, and we are now managing through an unprecedented situation,” Mohawk Chairman and CEO Jeffrey Lorberbaum said in a statement, referencing the COVID-19 pandemic. The company has been reducing capital expenditures, cutting non-essential expenses and putting its stock purchases on hold during the crisis.
“Across all of our markets, demand has dropped dramatically, with residential remodeling being impacted the most up to this point and DIY products performing best, as some people started projects while staying home,” Lorberbaum added.
The company “significantly reduced production” as demand fell and has been making weekly adjustments to adapt to the changing environment.
“Our business model remains solid with strong local teams in each market taking the necessary actions to manage the downturn,” Lorberbaum said. “The economies will return to normal over time, and we are optimistic about the long-term future of our business.”
