Mohawk Industries' 1Q net sales down 6.4% to $2.3 billion
Mohawk Industries,1Q 2020,net sales,net earnings,flooring
Mohawk Industries, Inc. announced 1Q 2020 net earnings of $111 million and diluted earnings per share (EPS) of $1.54. Adjusted net earnings were $119 million, and EPS was $1.66, excluding restructuring, acquisition and other charges.
Net sales for the 1Q 2020 were $2.3 billion, down 6.4% as reported and 3.5% on a constant currency and days basis. For the 1Q 2019, net sales were $2.4 billion, net earnings were $122 million and EPS was $1.67, adjusted net earnings were $154 million, and EPS was $2.13, excluding restructuring, acquisition and other charges.
Commenting on Mohawk Industries’ 1Q performance, Jeffrey S. Lorberbaum, Chairman and CEO, stated, “The world changed during the 1Q, 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. During 2019, we generated $1.4 billion of operating cash flow, and we have a strong balance sheet and leverage of 1.6x, near our historical low. We recently obtained a $500 million term loan to expand our liquidity to $1.3 billion after we pay off a Euro 300 million note this month. With no other maturities in 2020, we have liquidity to manage through the downturn and strengthen our position when the economy recovers. We are reducing capital expenditures, cutting non-essential expenses and putting our stock purchases on hold until the environment improves.”
Mohawk Industries is the leading global flooring manufacturer.