Mohawk Industries, Inc. has released its financial results for the fourth quarter of 2024, reporting a net income of $93 million, which equates to earnings per share (EPS) of $1.48. After adjusting the figures, net income rose to $123 million and adjusted EPS stood at $1.95. The company’s net sales during this period reached $2.6 billion, marking a 1.0% increase compared to the same quarter of the previous year, although, on an adjusted basis, a 1.0% decrease was observed.
In contrast, in the fourth quarter of 2023, Mohawk had reported a significantly higher net income of $140 million, with an EPS of $2.18. The adjusted net income for that period was $125 million, with an adjusted EPS of $1.96.
Throughout 2024, the company recorded a total net income of $518 million, with an EPS of $8.14. Adjusting these figures, net income increased to $617 million and EPS to $9.70. However, annual net sales were $10.8 billion, representing a 2.7% decrease compared to the previous year. This change is significant, considering that in 2023 the company had faced net losses of $440 million.
Jeff Lorberbaum, President and CEO of Mohawk Industries, highlighted that the fourth-quarter results exceeded analysts’ expectations. He attributed this strong performance to various initiatives implemented, including sales reforms and productivity improvements. Despite storms in the United States impacting sales by around $10 million, the launch of new products and marketing strategies contributed to increasing global sales, even as demand in the housing sector showed weaknesses.
During his market analysis, Lorberbaum pointed out that competition and high interest rates continue to affect consumer behavior. Although home sales have decreased, investments in the tertiary sector have remained stable. Within the restructuring initiatives, the CEO mentioned that these have facilitated cost reductions expected to have positive repercussions on the company’s future results.
In the different operating segments, the quarter reflected slight growth in ceramic net sales, while other global flooring segments experienced declines. The company has taken steps to improve its cost competitiveness, especially in light of rising material and labor prices. In North America, flooring segment sales grew by 2.8%, although the operating margin was pressured by intense price competition.
On the other hand, Mohawk has announced restructuring efforts in its ceramic business in Mexico, with the expectation of significant savings. Economic projections for the first quarter of 2025 indicate that the company will face challenges, but remains confident in its ability to adapt and capitalize on opportunities as the market improves.
via: MiMub in Spanish
