Mohawk Q4 2021 Earnings Report
Key Takeaways
Mohawk Industries reported Q4 2021 net sales of $2.8 billion, a 4.5% increase as reported and 11.8% on a constant currency and days basis. Net earnings were $189 million, with an EPS of $2.80. Adjusted net earnings were $199 million, and EPS was $2.95, excluding restructuring, acquisition, and other charges.
Q4 sales increased by 4.5% as reported and 11.8% on a constant currency and days basis.
Net earnings decreased to $189 million, with EPS at $2.80.
Operating margins for the year rose dramatically to approximately 12%.
Company purchased approximately 2.4 million additional shares of stock during the fourth quarter.
Mohawk
Mohawk
Mohawk Revenue by Segment
Forward Guidance
The company anticipates first quarter adjusted EPS to be $2.90 to $3.00, excluding any restructuring charges. In the second half, margins are expected to improve as capacity expands, inflation moderates and pricing aligns.
Positive Outlook
- GDP is expected to grow 3 to 5% in most markets.
- Residential sales are expected to remain strong and commercial sales improving.
- Interest rates will likely rise but should remain historically favorable.
- Inflation is anticipated to moderate during the year.
- Constraints in labor, material and energy declining.
Challenges Ahead
- Significant short-term material, energy and transportation inflation is affecting all businesses.
- Reengineering formulations, reducing spending and improving efficiencies to offset inflation.
- European ceramic business has been the most impacted by accelerating energy costs.
- European ceramic business anticipated to create a $40-$45 million headwind in the first quarter, net of price increases.
- Implementing price increases and have announced additional ones across products and geographies.
Revenue & Expenses
Visualization of income flow from segment revenue to net income