Calhoun-based Mohawk carpet and tile maker's profits rise to record high coming out of pandemic

Jul. 30—The world's biggest flooring company rolled up record sales and profits in the second quarter as home remodeling and housing construction rebounded strongly from the pandemic shutdowns a year earlier.

Mohawk Industries Inc. said Thursday it earned a record $336.3 million, or $4.82 per share, on sales of nearly $3 billion in the fiscal quarter ended June 30. Sales were up 44% from the depressed levels a year ago when the coronavirus pandemic shut down carpet mills and tile manufacturing plants and stores.

Mohawk's results were well ahead of the average forecast among analysts who follow the company who had predicted Mohawk would earn $3.63 per share in the most recent quarter. As a result, shares of the Calhoun, Georgia-based carpet and tile maker traded higher in after-the-market trading Thursday after the earnings were released.

"Our second quarter results were significantly stronger than we had anticipated across all our businesses with sales building on the momentum from our first period," Mohawk CEO Jeff Lorberbaum said. "In the quarter, our earning per share was the highest on record for any quarter and our operating margin expanded to its highest level in the last four years."

Lorberbaum said Mohawk's ongoing programs to simplify its product offering, enhance productivity and reduce costs are paying off with nearly $95 million of the anticipated $100 to $110 million in savings already achieved from Mohawk's restructuring initiatives.

Lorberbaum said the company still faces supply and labor challenges coming out of the pandemic, which are pushing up prices of flooring.

"Across the enterprise, we continue to respond to rising material, energy and transportation costs by increasing product prices and optimizing manufacturing and logistics," Lorberbaum said. "During the quarter, most of our manufacturing ran near capacity or were limited by material supply and labor availability. Raw material constraints in many of our operations led to unplanned production shut downs during the period."

Lorberbaum said both residential and commercial flooring markets are improving from both new and remodeling work across the globe.

"To alleviate manufacturing constraints, we have approved new capital investments of approximately $650 million to increase our production with most taking 12 to 18 months to implement," he said. "With our strong balance sheet and historically low leverage, we are reviewing additional investments to expand our sales and profitability."

Shares of Mohawk have more than doubled in the past year from when the company reported a net loss in the second quarter of 2020. So far in 2021, Mohawk's stock is up nearly 39%, or more than twice the average gain for all stocks in the S&P 500.

Contact Dave Flessner at or at 423-757-6340.