Mohawk Industries beats Q2 profit by cutting back on costs
25/07/2024 22:07
July 25 (Reuters) - Home flooring manufacturer Mohawk
Industries MHK.N reported second-quarter profit above Wall
Street estimates on Thursday due to cost-cutting initiatives,
sending its shares up 12%.
Mohawk Industries manufactures flooring products for
remodeling and new constructions of residential and commercial
spaces in the United States and internationally.
High interest rates and persistent inflation have lowered
consumer spending in the U.S., squeezing demand for home
remodeling and impacting home furnishing manufacturers such as
Mohawk.
"Our adjusted earnings per share rose as a result of
productivity initiatives and restructuring as well as lower
energy and material costs," CEO Jeff Lorberbaum said in a
statement.
The Georgia-based company reported an adjusted net income of
$3 per share, for the quarter ended June 29, compared to $2.76
per share a year earlier.
Analysts, on average, had expected a profit of $2.75 per
share, according to LSEG data.
Net sales for the quarter stood at $2.8 billion, narrowly
missing expectations of $2.83 billion.
(Reporting by Abhinav Parmar and Aishwarya Jain in Bengaluru;
Editing by Alan Barona)
((Abhinav.Parmar@thomsonreuters.com;))