Flooring business remains slow at Mohawk Industries
20 Apr '07
3 min read
"The Mohawk segment sales were off 9% as they continue to be impacted by the downward trends in the industry. Industry sales declined more in the first quarter than in the fourth quarter. The commercial channel is stronger with the modular carpet category increasing its market share. Raw material costs remained stable from the fourth quarter."
"With the recent spike in oil prices, we are seeing an escalation in our costs from our suppliers and we are evaluating a price increase on our products to compensate. We have adjusted our plant production levels and reduced expenses to offset some of the lower volumes. In addition, we have multiple initiatives to improve productivity, efficiency and other costs."
"The Dal-Tile segment sales were down 2% in the quarter. Our earlier investments are minimizing some of the declining sales trends affecting the entire industry. Commercial is still growing and is expected to be strong throughout the year. We are reducing our outsourced ceramic tile purchases to offset slower sales. We have opened new galleries in New York City and Chicago and a stone center in Atlanta to strengthen our position in these markets. All were favorably received by our customers."
marketing@alchempro.com
