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Oct 02, 2021
Mohawk Q3 2021 Earnings Report
Mohawk Industries reported Q3 2021 results with increased net sales and earnings.
Key Takeaways
Mohawk Industries reported a strong Q3 2021, with net sales of $2.8 billion, up 9.4% year-over-year, and diluted EPS of $3.93. Adjusted EPS was $3.95, excluding restructuring, acquisition, and other charges. The company managed through a challenging environment with supply chain difficulties and government lockdowns, while maintaining robust home sales and remodeling investments.
Net sales increased by 9.4% as reported and 8.7% on a constant currency basis.
Diluted earnings per share (EPS) reached $3.93, or $3.95 excluding certain charges.
The company faced challenges including COVID-related impacts, supply chain disruptions, and rising natural gas costs in Europe.
Mohawk increased its stock purchase program by an additional $500 million and bought back approximately $250 million of its stock during the quarter.
Mohawk
Mohawk
Mohawk Revenue by Segment
Revenue by Segment
Global Ceramic Revenue
CapyFin.comFlooring North America Revenue
CapyFin.comFlooring Rest of World Revenue
CapyFin.com Forward Guidance
For the fourth quarter, the company anticipates adjusted EPS to be $2.80 to $2.90, excluding any restructuring charges. They expect industry seasonality to be more typical and plan to run operations at high levels. Record natural gas prices in Ceramic Europe are increasing net costs by approximately $25 million in the fourth quarter.
Positive Outlook
- New home construction and residential remodeling are projected to remain robust.
- The commercial sector is expected to improve as businesses invest and grow.
- Sales should grow with capacity expansions and innovative new product introductions.
- The balance sheet is the strongest in the company's history, supporting increased investments and strategic acquisitions.
- Operations will run at high levels to improve service and increase inventories.
Challenges Ahead
- Industry seasonality will be more typical, unlike last year when demand was unusually high.
- Record natural gas prices in Ceramic Europe are increasing net costs by approximately $25 million in the fourth quarter.
- The fourth quarter calendar has 6% fewer days than the prior year.
- Inflation and material availability pose temporary challenges.
- There are continued staffing, supply, and transportation constraints across the businesses.
Revenue & Expenses
Visualization of income flow from segment revenue to net income