World leader expects growth next year
October 29, 2024
Mohawk Industries - the world's biggest flooring company – expects growth next year but a tough winter ahead.
Announcing its Q3 results, Mohawk saw revenues slip 1.7% to $2.7 billion with operating profits of $212.3 million. In its "rest of the world" segment that includes the UK, sales were down 3.5%.
US-based Mohawk is best known in the UK for its Unilin brands (including Quick-Step, Pergo, IVC, Moduleo, SmartStrand).
Mohawk CEO Jeff Lorberbaum commented: "Global conflicts, political uncertainty and inflation are weighing on consumer confidence and discretionary spending around the world. Short-term macroeconomic conditions remain unpredictable, and we do not anticipate an industry improvement this year. Demand remains weak."
But he added: "In our markets, central banks are shifting from a restrictive policy to a more balanced approach to stimulate their economies, which should benefit our industry as consumer and business spending expands. We expect that recent interest rate cuts in the U.S., Europe and Latin America will strengthen housing markets and increase flooring sales next year."
In July, Mohawk announced aggressive plans to save an extra $100m in its expenditure and that program is starting to come through, it says, with operating costs down 13 percent on Q3 2023.
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