CALHOUN, Ga. — Mohawk Inds. finished its second quarter June 30 with a net loss of $48 million, or 68 cents per share, down about 124% year-over-year. Adjusted for restructuring, acquisition and other changes, net earnings were $26 million, or 37 cents per share.
Citing government restrictions during the pandemic, Mohawk Chairman and CEO Jeffrey S. Lorberbaum said, “All of our businesses were dramatically impacted, with most of our customers and facilities operating either in a limited capacity or completely shut down for some time.”
Net sales for the second quarter of 2020 were $2 billion, down 21% from $2.6 billion in the year-ago period, with Lorberbaum noting that sales had bottomed out in April and have since been improving, “more than we expected.”
At this time, our visibility into the future continues to be uncertain due to the persistent Covid spread and the unknown strength of the economic recovery,” he said, adding, “Given these factors, our business plans must remain flexible to quickly adjust our production levels.”
With restructuring plans in place — which include reducing SG&A, headcount and lower performing SKUs, as well as closing less-efficient operations — Lorberbaum said the company anticipates an annual savings of $110 million to $120 million, taking much of the next year to complete the initiatives and capture the full benefit.
Although sales in July were virtually flat compared with the prior year, Mohawk said it was unable to provide guidance for the third quarter, although it expect “significant improvement in our results from the second quarter.”
| Mohawk Inds. | |||
| Earnings per share are fully diluted, and all figures in parentheses are losses or declines. | |||
| Quarter ended 6/30 | 2020 | 2019 | % change |
| Net sales | $2,049,800,000 | $2,584,485,000 | (20.7%) |
| Operating income | (60,958,000) | 266,860,000 | (122.8%) |
| Net income | (48,257,000) | 202,441,000 | (123.8%) |
| Earnings per share | (0.68) | 2.79 | (124.4%) |
