The world's biggest floor covering maker benefitted from consumers' focus on home repairs and upgrades to achieve record-high first quarter sales and profits this year.
Mohawk Industries Inc. said Thursday that carpet, tile and other flooring sales were up 16.8% in the first three months of 2021 compared with a year ago, rising to $2.7 billion. The Calhoun, Georgia-based manufacturer reported net income of $237 million, or $3.36 per share, in the first quarter of 2021 -more than double the $111 million, or $1.66 per share, earned a year earlier.
The results also topped analysts' forecasts by nearly by 20%, elevating the company's stock price in after-hours trading.
"Our outstanding performance in the period included all-time record sales and our highest ever first quarter earnings per share," Mohawk CEO Jeffrey Lorberbaum said in the earnings announcement. "Around the world, consumers are continuing to invest in their homes, and new flooring has a major role in most remodeling projects. We are also starting to see moderate improvement in commercial demand as global economies expand and businesses begin to invest in anticipation of a return to normal."
Lorberbaum said Mohawk improved its profit margins through its ongoing restructuring plans, which helped the company save $75 toward its anticipated $110 million in savings this year. Loberberbaum said global transportation capacity has been limited, boosting costs and hurting some deliveries. But the company has raised prices in most product categories as a result.
Mohawk shares rose ahead of the earnings announcement to $212.98 per share, which is up more than 51% since the start of 2021 and more than double the price of Mohawk's stock a year ago.
- Compiled by Dave Flessner