Mohawk Industries posts record sales in fourth quarter of 2020

The US flooring giant saw sharp growth in sales (+9%) in the final quarter of the year. All the group’s business units performed well.

Following sharp growth in Q4 (+9% on the same period in 2019), Mohawk Industries ended 2020 with smaller than expected losses. Net sales totalled $9.6 billion, a 4.2% decrease on the $10 billion of 2019, while net earnings (excluding restructuring, acquisition and other charges) amounted to $631 million (compared to $725 million in 2019). This was a more than satisfactory result given the severe challenges faced in 2020 due to the Covid-19 pandemic. The US giant’s recovery began in the third quarter and continued at a faster pace in the following months, a trend that largely accounted for the end of year result.

“Our fourth quarter results exceeded our expectations as we posted our highest ever quarterly sales,” said Jeffrey S. Lorberbaum, Chairman and CEO of Mohawk Industries. “We ran our plants around the world at high levels during the period. All of our markets saw strengthening residential purchases, with laminate, LVT and sheet vinyl outperforming other flooring categories. Commercial activity remains weak. Our results improved with higher volumes, restructuring initiatives and leverage on costs, while being adversely affected by lower runs and inventory, higher absenteeism and labour shortages in some operations.”

All of the group’s business units reported strong performances in the last quarter of the year. The Global Ceramic Segment’s sales increased by 7% to $919.6 million, while operating income increased by over 50% to $79.6 million due to improved productivity, partially offset by unfavourable price and mix. The US business saw excellent results, while the Mexican and Brazilian businesses posted record quarterly sales and expanded margins despite the inflationary headwinds. Sales also performed strongly in Russia, where the group is ramping up premium sanitaryware production, and in Europe, primarily due to growth in the residential segment.

In 2020, the Global Ceramic Segment posted overall net sales of $3.43 billion (down 5.5% on 2019), equivalent to 35.9% of total group sales.