Mohawk Industries reported a net profit of $205 million in the third quarter of 2020, a 31% increase from the same period last year. Net sales increased 2% to $2.6 billion.
“Our results in the period significantly exceeded our expectations, with sales recovering and operating income substantially increasing above last year’s levels,” Chairman and CEO Jeffrey Lorberbaum said in a statement. “Under continued pandemic conditions, people all over the world are spending more time in their homes and working remotely,” he added. “Globally, this trend is increasing investments in home remodeling as well as driving new home purchases.”
The company completed a consolidation of its wood manufacturing operations in Malaysia during the quarter, a move that significantly reduced costs, it stated.
Mohawk also completed an internal investigation regarding a class-action lawsuit alleging the company fabricated revenues. The company’s audit committee concluded no wrongdoing occurred and that the allegations are “without merit.” It is cooperating fully with ongoing governmental investigations into the matter.
