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Dec 31, 2019
Mohawk Q4 2019 Earnings Report
Mohawk Industries reported flat sales and strong cash generation.
Key Takeaways
Mohawk Industries reported Q4 2019 net sales of $2.4 billion, a decrease of 1.0% as reported. Net earnings were $265 million, and EPS was $3.68, including a one-time tax benefit of $136 million. Adjusted EPS was $2.25, excluding restructuring, acquisition and other charges. The company's operating and free cash flow for the quarter were $440 million and $300 million, respectively.
Net sales for the fourth quarter of 2019 were $2.4 billion, down 1.0% as reported.
Net earnings for the fourth quarter of 2019 were $265 million, and EPS was $3.68, including a one-time tax benefit of $136 million.
Adjusted net earnings were $162 million, and EPS was $2.25, excluding restructuring, acquisition and other charges.
Operating and free cash flow for the quarter were $440 million and $300 million, respectively.
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
Mohawk Industries expects EPS for the first quarter of 2020 to be $1.90 to $2.00, excluding any one-time charges. For the full year of 2020, the company expects improved year-over-year results, with performance accelerating during the second half of the year.
Positive Outlook
- Actions to increase sales and distribution
- Actions to reduce costs
- Actions to enhance utilization of new plants
- LVT manufacturing capacity grows with higher speeds and efficiencies
- Enhancing design and features and increasing sales of rigid and flexible offerings
Challenges Ahead
- LVT growth in the U.S.
- Exchange rates
- Excess global capacity
- Market conditions remain challenging across most of our businesses and geographies
- Limiting the traditional inventory build that we typically do in the first quarter, as we manage our production with market demand
Revenue & Expenses
Visualization of income flow from segment revenue to net income