American flooring producer Mohawk's Q3 sales up 9.4% to $2.8 bn

06
Nov '21

Pic: Mohawk Industries

Mohawk Industries, a leading flooring manufacturer in the US, has reported a 9.4 per cent sales growth to $2.8 billion in the third quarter (Q3) of FY21 ended on October 2, 2021, over the sales of $2.5 billion in the corresponding period of previous fiscal. Net earnings for the three-month period expanded to $270.9 million (Q3 FY20: $205.1 million).

“All of our businesses performed well, managing through a changing environment. In the period, Covid directly and indirectly impacted many economies, creating supply chain difficulties that disrupted production as well as leading to government lockdowns in Australia, New Zealand, and Malaysia that halted manufacturing and retail,” Jeffrey S Lorberbaum, chairman and CEO at Mohawk Industries, said in a press release.

“Despite these and other headwinds, our third quarter sales trends continued in most regions, with Europe’s results reflecting normal summer seasonality. Home sales were robust across most geographies, and consumers continued remodelling investments at a strong pace. Year over year, the commercial sector showed improvement, though at a slower rate as Covid concerns delayed the timing of some projects,” Lorberbaum continued.

Sales from global ceramic business during the third quarter improved 9.6 per cent to $998.4 million ($911.3 million), whereas flooring North America achieved $1.0 billion ($800.0 million) in sales, up 6.9 per cent from Q3 FY20. Moreover, sales from flooring in the rest of the world surged by 13 per cent to $768.1 million ($681.3 million).

The American carpet and rug manufacturer’s gross profit during Q3 escalated to $837.3 million ($706.2 million). Operating income totalled to $359.9 million ($262.7 million).

“For the fourth quarter, we anticipate that industry seasonality will be more typical, unlike last year when demand was unusually high. In the period, we will run our operations at high levels to support our sales, improve service and increase inventories,” Lorberbaum further noted. “Our sales in some categories are being limited by our manufacturing capacities, and we are increasing investments to expand the production of these growing categories.”

“Despite temporary challenges from inflation and material availability, our long-term outlook remains optimistic with new home construction and residential remodelling projected to remain robust, and the commercial sector improving as businesses invest and grow. Next year, our sales should grow with capacity expansions and innovative new product introductions. Our strategies to optimise our results continue to evolve with the economic and supply chain conditions,” Lorberbaum concluded in the release.

Fibre2Fashion News Desk (JL)

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