Mohawk Posts First-Quarter Loss

Reduced demand and restructuring charges resulted in a first-quarter net loss at Mohawk Industries of $106 million, or $1.55 per share.

The results for the quarter ended March 28 include a $122 million charge for a discontinued carpet tile backing operation, a $62 million first-in first-out related to inventory flow and a $4 million restructuring cost.

We do not see a catalyst for a significant change in the overall flooring category in the near term, the company said in its announcement. During the quarter, Mohawk cut production in four operating units, reduced warehouse space by 1 million square feet and eliminated some 2,000 jobs to rein in costs.

Chairman and ceo Jeffrey Lorberbaum noted Mohawk generated $38 million in operating cash flow during the quarter — $118 million more than in first quarter 2008. "Working capital improved with inventories declining $183 million during the quarter. The balance sheet remains strong with a cash balance of $137 million and credit availability of more than $800 million, he said.

Sales during the quarter fell 30% to $1.2 billion.

Home Textiles Today Staff | News & Commentary

Home Textiles Today is the market-leading brand covering the home and textiles markets, offering a comprehensive package of print and online products. Home Textiles Today provides industry news, product trends and introductions, exclusive industry research, consumer data, store operations solutions, trade show news and much more.

Research Store

Featured Video

Subscribe to
Home Textiles Today eDaily
Receive the news you need to know about the trends in the industry delivered right to your inbox.

CURRENT ISSUE

HTT November 2017 cover

See the November 2017 issue of Home Textiles Today. In this issue, we look at Complex Colors, Complex Times--Trend forecasters and interior designers weigh in on 2018 palettes and motifs.  Other articles include: Data: Exclusive HTT soft window research; Innovation: Material Changes conference preview; Country report: India invests in the future and Fabrics: Showtime preview.  See details!