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Mar 28, 2020
Mohawk Q1 2020 Earnings Report
Mohawk Industries reported a decrease in net sales and earnings per share for Q1 2020, impacted by the COVID-19 pandemic.
Key Takeaways
Mohawk Industries reported Q1 2020 net sales of $2.3 billion, a 6.4% decrease compared to Q1 2019. Net earnings were $111 million, with a diluted EPS of $1.54. The company's performance was impacted by the COVID-19 outbreak, which led to reduced demand and production adjustments across all markets.
Net sales decreased by 6.4% to $2.3 billion due to the impact of COVID-19.
Net earnings were $111 million, and diluted EPS was $1.54.
The company has $1.3 billion in liquidity to manage through the crisis.
Mohawk is reducing capital expenditures and non-essential expenses to conserve cash.
Revenue by Segment
Forward Guidance
Due to the uncertainty surrounding the COVID-19 pandemic, Mohawk Industries is unable to provide EPS guidance for the second quarter and anticipates an operating loss.
Positive Outlook
- Strong balance sheet with substantial liquidity of $1.3 billion.
- Solid business model with strong local teams in each market.
- Focus on conserving cash, adjusting production, and reducing inventory.
- Reducing expenses and investments and aligning with government requirements and support.
- Optimistic about the long-term future of the business.
Challenges Ahead
- The rate at which governments will open commerce and the subsequent consumer response cannot be determined.
- Some businesses have postponed investments in both remodeling and new construction.
- Sales rate is about 35% below the prior year at the end of April.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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