Page 1

News Releases * ir.mohawkind.com / news - releases / news - release - details / mohawk - industries - reports - q2 - results - 2 CALHOUN , Ga . , July 29 , 2021Mohawk Industries , Inc. ( NYSE : MHK ) today announced 2021 second quarter net earnings of $ 336 million and diluted earnings per share ( EPS ) of $ 4.82 . Adjusted net earnings were $ 310 million , and EPS was $ 4.45 , excluding restructuring , acquisition and other charges . Net sales for the second quarter of 2021 were $ 3.0 billion , up 44 % as reported and 38 % on a constant currency and days basis . For the second quarter of 2020 , net sales were $ 2.0 billion , net loss was $ 48 million and diluted loss per share was $ 0.68 , adjusted net earnings were $ 26 million , and EPS was $ 0.37 , excluding restructuring , acquisition and other charges . For the six months ending July 3 , 2021 , net earnings and EPS were $ 573 million and $ 8.18 , respectively . Net earnings excluding restructuring , acquisition and other charges were $ 556 million and EPS was $ 7.94 . For the 2021 six - month period , net sales were $ 5.6 billion , an increase of 30 % versus prior year as reported or 23 % on a constant currency and days basis . For the six - month period ending June 27 , 2020 , net sales were $ 4.3 billion , net earnings were $ 62 million and EPS was $ 0.87 ; excluding restructuring , acquisition and other charges , net earnings and EPS were $ 146 million and $ 2.04 , respectively . Commenting on Mohawk Industries ' second quarter performance , Jeffrey S. Lorberbaum , Chairman and CEO , stated , " In the quarter , we generated the highest quarterly sales of any period in our company's history . Our revenues increased significantly over last year , when the pandemic interrupted the global economy . 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 . In the quarter , our EPS was the highest on record for any quarter and our operating margin expanded to its highest level in the last four years as we leveraged our operational and SG & A expenses . The actions we have taken to simplify our product offering , enhance our productivity and restructure our costs are benefiting our results . We have delivered almost $ 95 million of the anticipated $ 100 to $ 110 million in savings from our restructuring initiatives . Across the enterprise , we continue to respond to rising material , energy and transportation costs by increasing product prices and optimizing manufacturing and logistics . " 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 . Overall , we successfully managed these interruptions that impeded our normal operations as well as regional manufacturing and customer closings related to Covid regulations in local areas . Our inventory levels increased slightly in the period , primarily reflecting higher material costs . Rising freight costs and limited shipping capacity impacted our material costs , availability of imported products , local shipments to customers and international exports . Presently , we do not anticipate near term abatement of these constraints . " All of our markets continue to show strength with robust housing sales and remodeling investments across the world . Commercial projects are increasing as the global economy improves and businesses gain confidence to expand and remodel . Inventory levels in most channels remain low , and our sales backlog is above historical levels . To improve our sales , mix and efficiencies , we will introduce more new products with enhanced features and lower production complexity in the second half of the year . 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 . In the second quarter , we purchased $ 142 million of our stock at an average share price of approximately $ 208 for a total of $ 827 million since we initiated our purchasing program . With our strong balance sheet and historically low leverage , we are reviewing additional investments to expand our sales and profitability . " For the quarter , our Flooring Rest of the World Segment's sales increased 68 % as reported and 50 % on a constant currency and days basis . The segment's operating margins increased from 5.9 % to 19.7 % as reported . The increase was due to higher volume , pricing and mix improvements and a reduction of Covid restrictions partially offset by inflation . All our major product categories improved significantly during the period as residential sales expanded in all regions . We have implemented multiple price increases in most product categories to cover inflation in materials and freight . Raw material supplies are problematic and have impacted our LVT production and sales the most . We anticipate material and freight challenges will continue to impact our business in the third quarter . Sales of our high - end laminate continue to grow dramatically as our proprietary products are being widely accepted as a water - proof alternative to LVT and wood . We recently completed the acquisition of a laminate distributor in the U.K. that will improve our position in the market . Our LVT sales growth was strong during the period and could have been even higher if material shortages had not interrupted manufacturing . We are significantly expanding sales of our rigid LVT collections with our patented water - tight joints that prevent moisture from penetrating the floor . Our sheet vinyl sales rebounded strongly as retail stores opened in our primary markets . Our sheet vinyl distribution in Russia has expanded , and we are maximizing production to meet the growing demand . Our Australian and New Zealand flooring businesses delivered excellent 1/15