Mohawk Industries profit beats estimates but says will restructure operations
Feb 8 - Home flooring manufacturer Mohawk Industries reported a higher-than-expected fourth-quarter profit on Thursday, helped by its cost-cutting initiatives. High interest rates and persistent inflation have lowered consumer spending in the U.S., squeezing demand for home remodeling and impacting home furnishing manufacturers like Mohawk.
Mohawk said it will restructure its operations to adapt to industry conditions and anticipates temporary shutdowns to manage inventories.
"We are well positioned to manage current conditions and emerge stronger from this economic cycle when the rebound occurs," Chairman and CEO Jeff Lorberbaum said in a statement.
It also said it has been undertaking profit optimization initiatives to counter the margin drag by the subdued construction activity in the United States.
The Calhoun, Georgia-based company reported adjusted net profit of $125 million, or $1.96 per share, for the fourth quarter, beating analysts' estimates of $1.86 per share.
Net sales for the quarter stood at $2.61 billion, beating expectations of $2.57 billion.
The company expects to report first-quarter adjusted earnings per share between $1.60 and $1.70, having priced in the industry pressures and its restructuring actions.
(Reporting by Abhinav Parmar and Raechel Thankam Job; Editing by Tasim Zahid)
