Mohawk Q2 2022 Earnings Report
Key Takeaways
Mohawk Industries reported Q2 2022 results with net sales increasing by 6.7% to $3.2 billion, but net earnings decreased to $280 million, and EPS decreased to $4.40. The company faced challenges including inflation and a strengthening U.S. dollar, but price increases and product mix improvements helped to offset some of these headwinds.
Net sales increased by 6.7% as reported and 11.1% on a constant basis.
Net earnings decreased to $280 million, with EPS at $4.40.
Global Ceramic segment net sales increased by 11.5% as reported and 14.6% on a constant basis.
Company is taking actions to restructure costs and adjust to changing market conditions.
Mohawk
Mohawk
Mohawk Revenue by Segment
Forward Guidance
The company anticipates softening demand and increased pressure on margins going forward. Third quarter adjusted EPS is expected to be $3.33 to $3.43, excluding any restructuring charges.
Positive Outlook
- Introducing higher value products.
- Enhancing service levels to expand sales.
- Reducing expenses and initiating new process improvements.
- Implementing multiple restructuring projects across the company to reduce costs.
- Expect improvements in material supply and transportation as we go through the remainder of the year.
Challenges Ahead
- Softening demand.
- Increased pressure on margins.
- Material and energy costs continue to rise.
- Rising interest rates will strengthen the dollar and reduce translated results.
- Higher natural gas prices and constrained supply are reducing economic growth in Europe.
Revenue & Expenses
Visualization of income flow from segment revenue to net income