Floorcovering giant Mohawk Industries on Thursday reported fourth quarter adjusted net earnings were down from a year ago due to soft demand, greater competition and reduced production volume.
The Calhoun, Georgia, company's adjusted net earnings in the quarter were $161.6 million, or $2.25 per share, off from $187.5 million, or $2.53 per share a year ago, Mohawk reported after the close of the stock market.
But earnings beat the consensus analyst estimate of $2.20 per share, according to Seeking Alpha.
Jeffrey S. Lorberbaum, Mohawk's chairman and CEO, said fourth quarter results were as expected with sales flat to last year and strong cash generation.
"In the U.S., markets continued to be influenced by the strong dollar, the impact of (Luxury Vinyl Tile) on other products and positive trends in housing that should be a tailwind," he said in a statement. "Competition has increased in our global markets, impacting our pricing and mix as we leverage investments in sales and marketing to drive growth."
Net sales for the fourth quarter were $2.4 billion, down 1% from a year ago, the company reported.
For the year, net earnings excluding restructuring, acquisition and other charges were $725 million or $10.04 per share. That's down from $12.33 per share in the prior year.
Mohawk said that market conditions remain challenging across most of its businesses and geographies.
"In response, we are adjusting our business strategies, enhancing our product offering and restructuring operations," Lorberbaum said. "We are increasing our investments in sales and marketing, expanding our commercial participation and enhancing both our premium and value collections. To broaden our distribution into new channels and geographies, we are bringing many new product innovations and categories to market."
Mohawks's earnings per share guidance for the first quarter of 2020 is $1.90 to $2, excluding any one-time charges.
The company's stock closed on the New York Stock Exchange on Thursday at $132.64 per share, down 54 cents, or 0.41%.