Mohawk “exceeded” expectations in 2024
Mohawk Industries has announced fourth quarter 2024 net earnings of $93m (£71.8m), with adjusted net earnings at $123m (£95m). Net sales for the fourth quarter of 2024 were $2.6bn (£2bn), an increase of 1.0% as reported and a decrease of 1.0% on an adjusted basis versus the prior year.
Mohawk Industries has announced fourth quarter 2024 net earnings of $93m (£71.8m), with adjusted net earnings at $123m (£95m). Net sales for the fourth quarter of 2024 were $2.6bn (£2bn), an increase of 1.0% as reported and a decrease of 1.0% on an adjusted basis versus the prior year.
Chairman and CEO Jeff Lorberbaum said: “Our fourth quarter results exceeded our expectations as sales actions, restructuring initiatives and productivity improvements benefited our performance. Additionally, the negative sales impact from US hurricanes was limited to approximately $10m. While residential demand remained soft in our markets, our product introductions last year and our marketing initiatives contributed to our sales performance around the globe.
“The fourth quarter environment was an extension of conditions our industry faced throughout last year. Consumers continued to limit large discretionary purchases, and consumer confidence remained constrained by cumulative inflation, economic uncertainty and geopolitical tensions. During 2024, home sales around the world stayed suppressed, US homeowners remained locked in place with low mortgage rates, and existing US home sales fell to a 30-year low.
“Central banks in the US, Europe and other regions lowered interest rates during the later part of last year, though the impact on housing turnover was negligible in most regions. New home construction was also constrained across the world, with higher home costs and interest rates impacting starts. Throughout the year, investments in the commercial sector slowed, though they remained stronger than residential remodeling.
In 2024, the company initiated “restructuring actions and operational improvements” designed to lower its outgoing costs.
Lorberbaum continued: “We generated free cash flow of $680mn and repurchased 1.3 million shares of our stock for $161m. We ended the year with available liquidity of approximately $1.6bn and debt leverage of 1.1 times. We are well positioned to manage this market cycle, pursue opportunities for long-term profitable growth and emerge stronger when housing markets improve.”
