Mohawk reported record sales in the fourth quarter of 2020 thanks to strong laminate, luxury vinyl tile (LVT) and sheet vinyl sales in the residential market.
Mohawk announced net sales for the fourth quarter of 2020 were $2.6 billion, an increase of 9.0% from the same period a year ago. For the twelve months ending December 31, 2020, net sales were $9.6 billion, a decrease of 4.2% versus prior year.
“Our fourth quarter results exceeded our expectations as we posted our highest ever quarterly sales,” said Mohawk Chairman and CEO Jeff Lorberbaum.
“All of our markets saw strengthening residential purchases, with laminate, LVT and sheet vinyl outperforming other flooring categories. Commercial activity remains weak and impacted sales and margins in the businesses where we have significant participation. Our results improved with higher volumes, restructuring initiatives and leverage on costs, while being adversely affected by lower runs and inventory, higher absenteeism and labor shortages in some operation.”
Flooring sales globally increased 20 percent in the fourth quarter, with sales and margins were strong in most categories and geographies with most plants operating near capacity. Raw material costs began to rise in many of product categories, and the company is taking pricing actions to respond to the increases, Lorberbaum said. Laminate, the segment’s largest flooring category, delivered significant growth across most markets. Sheet vinyl business rebounded as retailers re-opened stores and export markets picked up. Globally, ceramic sales increased 7%. LVT sales increased substantially, led by accelerated growth of rigid collections.
“We are introducing new collections with enhanced visuals and exclusive water-tight joints that better prevent water damage,” Lorberbaum noted. “Engineers from our European business are working in our U.S. LVT operations to implement demonstrated improvements to increase output, reduce material cost and enhance product visuals and performance.”