Mohawk Industries Q4 FY20 sales grow 9% to $2.64 bn

“Our fourth quarter results exceeded our expectations as we posted our highest ever quarterly sales. 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,” Jeffrey S Lorberbaum, chairman and CEO at Mohawk Industries, said in a press release.

 

Gross profit for the quarter rose to $738.08 million ($622.80 million). Selling, general and administrative expenses were $455.35 million ($467.99 million). Whereas, operating income for Q4 FY20 grew to $282.73 million ($154.81 million).

 

Sales of global ceramics segment during the quarter surged to $919.66 million ($858.33 million). Sales of flooring North America rose to $963.36 million ($936.38 million). However, sales of flooring rest of the world jumped to $758.73 million ($629.78 million).

 

“We have executed a large part of our restructuring initiatives, which is benefiting our results with some of the savings flowing through inventory in future periods. Demand for our residential carpet grew as comfort and noise reduction have become more important to consumers. Our laminate business is growing substantially in all channels as our unique visuals and waterproof technology have become desirable alternatives to natural wood and LVT,” Lorberbaum said.

 

“Our Brazilian and Mexican businesses delivered record quarterly sales and expanded margins even with inflationary headwinds and capacity constraints. Our European sales and profitability improved with residential sales stronger and lower commercial sales negatively impacting our mix and margins. Our service levels improved with the plants operating at higher rates; though inventories remained low due to higher demand. Our Russian ceramic business delivered strong results, even with inflation and currency headwind,” Lorberbaum said in the release.