Mohawk Industries reports Q3 adjusted EPS $2.67, consensus $2.64

Reports Q3 revenue $2.76B, consensus $2.73B. CEO Jeff Lorberbaum stated, “Our net sales in the quarter were in line with our expectations, slightly ahead of prior year as reported. Though economic conditions across our regions weakened more than anticipated compared to the prior quarter, we believe we outperformed our markets. Our sales and product mix continued to benefit from the success of our premium residential and commercial offering and collections introduced during the past two years. Our results reflected benefits from ongoing productivity and restructuring initiatives as well as the impact of favorable currency exchange and lower interest expense, offset by higher input costs and temporary plant shutdowns. Across our markets, material and energy expenses are now improving from peak levels, though higher costs from earlier in the year will continue to impact our Q4 earnings. With our markets remaining challenged, we are executing targeted actions across the organization to drive performance, such as operational enhancements, administrative process improvements and technology advancements. We are lowering our cost structure without impacting our long-term growth potential when the market recovers. We have identified additional restructuring opportunities to rationalize less efficient assets and streamline logistics operations and administrative functions across our segments. These new actions will result in annualized savings of approximately $32M at a net cash cost of approximately $20M after asset sales. Combined with our previously announced restructuring actions, we anticipate delivering $110M in savings this year. During the quarter, we continued to focus on our working capital management and generated approximately $310M in free cash flow.”