Mohawk Industries profit beats estimates but says will restructure operations
08/02/2024 22:54
Feb 8 - Home flooring manufacturer Mohawk Industries
MHK.N reported a higher-than-expected fourth-quarter profit on
Thursday, helped by its cost-cutting initiatives.
High interest rates and persistent inflation have lowered
consumer spending in the U.S., squeezing demand for home
remodeling and impacting home furnishing manufacturers like
Mohawk.
Mohawk said it will restructure its operations to adapt to
industry conditions and anticipates temporary shutdowns to
manage inventories.
"We are well positioned to manage current conditions and
emerge stronger from this economic cycle when the rebound
occurs," Chairman and CEO Jeff Lorberbaum said in a statement.
It also said it has been undertaking profit optimization
initiatives to counter the margin drag by the subdued
construction activity in the United States.
The Calhoun, Georgia-based company reported adjusted net
profit of $125 million, or $1.96 per share, for the fourth
quarter, beating analysts' estimates of $1.86 per share.
Net sales for the quarter stood at $2.61 billion, beating
expectations of $2.57 billion.
The company expects to report first-quarter adjusted
earnings per share between $1.60 and $1.70, having priced in the
industry pressures and its restructuring actions.
(Reporting by Abhinav Parmar and Raechel Thankam Job; Editing
by Tasim Zahid)
((Abhinav.Parmar@thomsonreuters.com;))