Mohawk Industries: Growth in sales despite a difficult 2018
Net sales grew to 10 billion dollars (+5%), total investments tot up 1.5 billion dollars. The Global Ceramic Division registered a 4% growth in sales to 3.55 billion dollars.
After five consecutive years of record earnings, the US flooring giant Mohawk Industries encountered greater difficulties than anticipated in 2018, with inflation increasing dramatically, luxury vinyl tile impacting ceramic tile and other flooring products and most markets slowing. While net sales grew by 5% to $10 billion, EBITDA fell by 8.3% to $1.704 billion (compared to $1.859 billion in 2017), 17% of sales, EBIT dropped to $1.189 billion and net earnings excluding restructuring, acquisition and other charges fell by 10% to $922 million.
Presenting the results to the market and shareholders, Jeffrey S. Lorberbaum, President and CEO of the US multinational, highlighted the importance of the investments made to support long-term growth. In 2018 alone, he said, “we selectively invested approximately $1.5 billion to enhance our long-term performance, primarily in new product categories and geographies with green field projects and acquisitions (the Brazilian Eliane, among others), cost saving initiatives and buying back shares totaling around $274 million”.
In the ceramic segment, with a capacity of more than 223 million square metres, plants in the USA, Mexico, Brazil, Spain, Italy, Poland, Bulgaria and Russia and sales in more than 160 countries, Mohawk Industries confirms its position at the very top of the world ceramic industry. Its brands (American Olean, Dal-Tile, Eliane, Emilgroup, KAI, Kerama Marazzi, Marazzi and Ragno) are the market leaders in North America, Brazil, Western and Eastern Europe and Russia.
In 2018, Mohawk’s Global Ceramic division maintained a 36% share of the group’s consolidated revenues. Sales grew from $3.405 billion in 2017 to $3.553 billion in 2018 (+4%), while operating income dropped from $545 million to $463 million (13% of sales).
Read the full article published on Ceramic World Review 130/2019