Mohawk Industries, a global flooring leader, reported its net sales fell 6.4 per cent to $2.3 billion in first quarter (Q1) FY20 ended on March 28, 2020 compared to sales of $2.4 billion in same period prior year. Net earnings during the quarter were $110.5 million (Q1 FY19: $121.5 million). Gross profit for Q1 FY20 were $616.4 million ($624.9 million).
“The world changed during the first quarter, and we are now managing through an unprecedented situation. Mohawk entered the year as the world’s leading flooring company with a strong presence in all product categories, manufacturing in 18 countries and sales in more than 170 nations,” Jeffrey Lorberbaum, chairman and CEO of Mohawk Industries, said in a press release.
Operating income during Q1 were $151.4 million ($165.3 million). Selling, general & administrative expenses were $464.9 million ($459.5 million).
Net sales for the Global Ceramic segment were $848.4 million ($898.3 million). Company reported that through February, US ceramic imports were 18 per cent lower than the prior year, and average import pricing rose 5 per cent. Company’s European ceramic business was on plan until the outbreak stopped production, and shipments to customers have continued.
Sales of Flooring North America were $848.3 million ($921.9 million). Mohawk stated that many retailers that carry its rug collections have been closed. Company’s carpet sales performed best in the builder, multi-family, education and government sectors as projects underway have continued. During the quarter, LVT and sheet vinyl performed the best in the segment.
Sales of Flooring Rest of the World were $588.9 million ($622.1 million). Company’s sheet vinyl business grew due to exports outside the region, and higher sales in Russia, where its new plant is operating well. In Australia and New Zealand, Mohawk’s sales were up slightly with hard surfaces growing and lower carpet sales pressuring margins.
