Mohawk Industries posts lower third-quarter revenue on pressured pricing
Corrects to add dateline
Oct 24 (Reuters) -Home flooring manufacturer Mohawk Industries MHK.N reported lower third-quarter revenue on Thursday, hurt by pressured pricing and weak demand for its flooring and ceramic products.
Shares of the Calhoun, Georgia-based company fell nearly 10% after the bell.
"In all our regions, market conditions were slower than anticipated given high interest rates, lingering inflation and lower consumer confidence," CEO Jeff Lorberbaum said.
Mohawk, which operates in North America, Europe, Latin America and Australasia, has reported $2.72 billion in revenue for the quarter ended September 28, down 1.7% from last year.
Analysts had, on average, expected a revenue of $2.7 billion, according to data compiled by LSEG.
Home remodeling demand in the United States has decreased due to higher borrowing costs and shrinking savings and are squeezing wallets. The overall housing supply remains limited, with residential construction activity subdued this year.
Sales at Mohawk's North America flooring segment, however, rose 1.2% over a year, in contrast to the decline in its global flooring and ceramic segments.
As the Federal Reserve starts to lower rates, the flooring industry is projected to benefit next year due to an increase in pent-up consumer demand for flooring purchases.
"We expect that recent interest rate cuts in the U.S., Europe and Latin America will strengthen housing markets and increase flooring sales next year," Lorberbaum added.
Mohawk reported quarterly adjusted profit of $2.90 per share, slightly above analysts' expectations of $2.89 per share.
Reporting by Rupali Chaudhary and Aatreyee Dasgupta; Editing by Mohammed Safi Shamsi
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