Mohawk Industries, one of the world’s largest manufacturers of wall and floor tiles, has announced its second quarter 2024 net earnings, along with a set of “restructuring actions” to be taken in response to the figures. The group’s earnings in Q2 2024 were $157m (£119m), with adjusted net earnings at $192m (£145.5m), and adjusted EPS was $3.00 (£2.27). Net sales for the second quarter of 2024 were $2.8bn (£2.12bn), a decrease of 5.1% as reported and 4.5% on an adjusted basis versus the prior year.
Net sales for the first six months of 2024 were $5.5bn (£4.17bn), a decrease of 4.8% as reported and 5.0% on an adjusted basis versus the prior year. For the six months ended July 1, 2023, net sales were $5.8bn (£4.4bn), net earnings were $181m (£137.2m) and EPS was $2.84 (£2.15).
Chairman and CEO Jeff Lorberbaum said: “To reduce costs and align our business with current conditions, we are initiating additional restructuring actions that will generate annualized savings of $100m, of which $20-$25m will be recognised this year. The cash cost of these actions is about $40m, with a total cost of approximately $130m. The execution timelines will vary by project, with some extending throughout 2025 and into 2026. Across the segments, we will idle less productive operations, consolidate regional warehouses and leverage technology to lower administrative costs. We will also retire less efficient equipment and simplify our product offering. Along with these actions, our teams are implementing many other measures to manage the current environment.”
