US flooring manufacturer Mohawk's Q1 FY21 sales jump 16.8% to $2.7 bn

04 May '21

2 min read

Pic: Mohawk Industries

Mohawk Industries, a US-based supplier of carpet, rugs, and wood floorings, has reported 16.8 per cent sales increase to $2.7 billion in its first quarter (Q1) FY21 ended on April 3, 2021, compared to sales of $2.3 billion in the same period previous fiscal. Net earnings attributable to Mohawk Industries jumped to $236.8 million (Q1 FY20: $110.5 million).

“Market demand strengthened as the period progressed, and our order backlog remains robust going into the second quarter. Most of our businesses are running at high production rates, though our inventories remain lower than we would like,” Jeffrey S Lorberbaum, chairman and CEO at Mohawk Industries, said in a press release.

Gross profit during Q1 FY21 rose to $791.7 million ($616.4 million), while selling, general and administrative expenses were $474.2 million ($464.9 million). Operating income grew to $317.5 million ($151.4 million).

Sales of global ceramics segment during the quarter surged to $929.8 million ($848.4 million). Sales of flooring North America increased to $969.2 million ($848.3 million), whereas sales of flooring rest of the world jumped to $769.9 million ($588.9 million).

“We have increased prices in most product categories and geographies, reflecting inflation in raw materials, labour, energy and transportation. Global transportation capacity has been limited, increasing our cost and delaying receipt of our imported products. We have seen similar constraints on local shipments and are increasing our freight rates to respond,” Lorberbaum said.

“Currently, our strong order backlog reflects the escalated levels of residential demand across the globe. We are introducing new product innovations to enhance our offering and customers sales and optimising our production to improve our service. We are preparing for an improvement in commercial projects, anticipating an economic expansion and a return to normal business investments,” Lorberbaum concluded in the release.

Fibre2Fashion News Desk (JL)

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