After five consecutive years of record earnings, the US flooring giant Mohawk Industries encountered greater difficulties than anticipated in 2018, with inflation increasing dramatically, luxury vinyl tile impacting ceramic tile and other flooring products, and most markets slowing.
While net sales grew by 5% to $10 billion, EBITDA fell by 8.3% to $1.704 billion (compared to $1.859 billion in 2017). EBIT dropped to $1.189 billion and net earnings excluding restructuring, acquisition and other charges fell by 10% to $922 million.
Jeffrey S. Lorberbaum, President and CEO , stated: “We selectively invested approximately $1.5 billion to enhance our long-term performance, primarily in new product categories and geographies with green field projects and acquisitions (the Brazilian tile manufacturer Eliane, among others), cost saving initiatives and buying back shares totaling around $274 million.”
In the ceramic segment, with a capacity of more than 223 million sq. metres, plants in the USA, Mexico, Brazil, Spain, Italy, Poland, Bulgaria and Russia, and sales in more than 160 countries, Mohawk Industries is the world leader. Its brands are American Olean, Dal-Tile, Eliane, Emilgroup, KAI, Kerama Marazzi, Marazzi, and Ragno.
In 2018, Mohawk’s Global Ceramic division maintained a 36% share of the group’s consolidated revenues. Sales grew from $3.405 billion in 2017 to $3.553 billion in 2018 (+4%), while operating income dropped from $545 million to $463 million (13% of sales).
British Ceramic Tile has secured its latest new business opportunity, taking British designer style to the Spanish tile market. The...Continue Reading
This year’s edition of the Natural Stone Show at the ExCeL exhibition centre promises to be a real landmark in...Continue Reading