In response to soft global demand, a leading flooring conglomerate has implemented restructuring efforts aimed at generating annual savings of up to $285 million. The company, headquartered in Georgia, is the world's largest flooring manufacturer and holds a significant presence in the European market. These cost-cutting initiatives are expected to conclude in 2026.
Photo: Mohawk Industries.
The announcement came as the flooring giant, Mohawk Industries Inc. released its Q4 and full-year 2024 results, reporting a return to profit following a non-cash impairment charge of $878 million in 2023. Net earnings for the year reached $517.7 million, reversing a loss of $439.5 million reported the previous year. However, full-year sales were down 2.7% to $10.84 billion, with Q4 sales increasing by 1% to $2.6 billion. When adjusted for currency movements, Q4 sales fell by 1%.
In the fourth quarter, the company's Flooring Rest of the World segment, saw a 2.1% decrease in sales to $691.8 million. When adjusted, this decline widened to 4.8%. For the full year, Flooring Rest of the World sales dropped 5.4% to $2.84 billion. Despite the global downturn, the company's restructuring efforts and improved profitability have positioned it for future growth as it continues to streamline operations worldwide.
Source: www.thefurnishingreport.com