Mohawk Industries Reports Improved Profitability, Reduced Expenses in Q3 2024

Mohawk Industries, Inc. reported its financial results for the third quarter and the first nine months of 2024, highlighting significant improvements in profitability compared to the same periods in 2023. For the three months ended September 28, 2024, net sales were $2,719.0 million, a decrease from $2,766.1 million in the prior year. For the nine months, net sales totaled $8,199.7 million, down from $8,522.8 million in 2023. The decline in sales was attributed to unfavorable pricing and product mix, as well as adverse foreign exchange impacts, partially offset by increased sales volume from acquisitions.

Despite the drop in sales, Mohawk achieved a gross profit of $692.6 million for the third quarter, slightly up from $692.0 million in 2023. The nine-month gross profit remained stable at $2,065.9 million compared to $2,067.4 million in the previous year. Selling, general, and administrative expenses decreased significantly, totaling $480.3 million for the third quarter and $1,493.0 million for the nine months, down from $549.6 million and $1,646.2 million, respectively. This reduction was primarily due to lower legal settlements and reserves.

Operating income for the third quarter was $212.3 million, a substantial recovery from an operating loss of $733.7 million in the same quarter of 2023. For the nine months, operating income reached $572.9 million, compared to an operating loss of $454.9 million in the prior year. Net earnings for the third quarter were $162.0 million, a significant turnaround from a net loss of $760.3 million in 2023. For the nine months, net earnings were $424.6 million, compared to a net loss of $578.8 million in the previous year.

The company’s restructuring efforts, initiated in 2022 and 2023, aimed at reducing costs, are expected to yield annual savings of approximately $115 million at a cost of around $130 million. Restructuring costs for the nine months ended September 28, 2024, totaled $67.4 million. Mohawk also completed acquisitions of two ceramic tile businesses in Brazil and Mexico for $515.5 million, which are anticipated to enhance operational performance and product innovation.

As of September 28, 2024, Mohawk's total assets were reported at $13,313.2 million, down from $13,559.8 million at the end of 2023. Cash and cash equivalents decreased to $424.0 million from $642.6 million at the end of the previous year. The company continues to navigate challenges posed by inflation and macroeconomic conditions, which have affected consumer spending and housing turnover rates.