World leader cuts costs by $100m
July 30, 2024
Mohawk, the world's biggest flooring company has cited weak demand in residential markets as the driver for a $100m cost reduction campaign.
Results for the US-based conglomerate saw a 5.1% fall in worldwide sales in the second quarter of 2024, to $2.8 billion with an 8.3% fall in its Rest of the World division in which its UK activity is included.
Mohawk is best know in the UK for its StainMaster and SmartStrand brands.
CEO Jeffrey Lorberbaum, said: "We'll rationalise some of our Flooring North America manufacturing to enhance plant utilisation, retire less efficient equipment, and simplify our offering. And Flooring Rest of World will lower our administrative and operating costs, streamline our product portfolio and distribution, and decommission inefficient assets.
"Our second-quarter results exceeded our expectations despite soft market conditions around the globe. The commercial channel continues to outperform residential, although some softness in the category is occurring. While the long-term demand for our products is strong, residential purchases across our geographies remained weak."
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