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Mohawk adapts production to weaker markets

08.02.2019 − 

After five consecutive years of record results, the 2018 financial year was more difficult than expected for the US flooring group Mohawk Industries. Many sales markets have weakened, competitive and price pressures have increased, and LVT's sustained gains in market share are also slowing sales development in other product categories at Mohawk. In the second half of the year in particular, the company also had to contend with cost increases in various product categories, some of which were passed on through price increases. In Flooring Rest of the World, for example, Mohawk initiated price increases for laminate flooring to offset higher costs and unfavourable exchange rate effects.

In the fourth quarter, Mohawk adjusted its production to the weakening sales markets. In the LVT segment, there were delays in ramping up the new facilities, which resulted in higher commissioning costs. Against this backdrop, Mohawk has postponed the market launch of individual planned LVT innovations in Europe for the time being. In the laminate flooring segment, Mohawk improved its market position both in North America and in Europe through the product innovations presented in recent months, so that sales increased against the market trend.

From Mohawk's perspective, the slowdown that occurred in many sales markets in the second half of 2018 has continued in the current year. The company will therefore continue the production adjustments initiated in the first quarter.

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