Mohawk Industries reports wider quarterly loss on $876 mln one-time charge
26/10/2023 22:14
Oct 26 (Reuters) - Mohawk Industries MHK.N reported a
wider third-quarter loss on Thursday, as the home floorings
manufacturer took a one-time charge of $876 million after a
review of its goodwill and intangible asset balances.
Demand for home remodeling in the U.S. has declined as
higher borrowing costs and dwindling household savings squeeze
consumer spending. Overall housing supply also remains
constrained, with residential construction activity subdued this
year.
"Our industry faces a greater impact from these pressures
than other sectors given that most flooring purchases can be
deferred," said Chairman and CEO Jeff Lorberbaum.
The tough macro-economic conditions, higher discount rates
and a decline in its market cap this year prompted the company
to conduct a review.
Mohawk Industries reported a net loss of $760 million, or
$11.94 per share, in the quarter ended September 30 compared
with a net loss of $534 million, or $8.40 per share, a year
earlier.
The company reported adjusted earnings per share of $2.72,
down from $3.34 a year earlier, but beat analysts' estimates of
$2.65.
Revenue for the quarter fell 8% from a year earlier to $2.8
billion in constant currency. However, it beat analysts'
expectations of $2.74 billion, as per LSEG data.
Shares of the company fell 5.37% in trading after the bell
before shedding losses to gain about 1%.
(Reporting by Ananta Agarwal in Bengaluru; Editing by Krishna
Chandra Eluri)
((Ananta.agarwal@thomsonreuters.com;))