CALHOUN, Ga.–Mohawk Industries’ posted a $128 million net earnings loss for the fourth quarter of 2008, as the company continued to battle a challenging economy. Sales for the period were down 18 percent, or $1,485 million.
Its operating income was $61 million, excluding charges, as the company expected. With charges, operating income fell $93 million. Charges included a pre-tax non-cash impairment charge of $124 million due to the continuing decline of Mohawk’s stock price and the deterioration of industry conditions, and a $30 million pre-tax charge related to business restructuring, a release stated.
“We are in an unprecedented time with the U.S. and world economies under great stress,” Jeff Lorberbaum, chairman and chief executive officer, said in the statement.
During a conference call with analysts, Lorberbaum added that customer traffic at flooring retailers has dropped, and customers are trading down to lower-priced products.
For the year ending December 31, the company posted a loss of $1.46 billion, including a $1.54 billion impairment charge plus a $253 million deferred tax impairment and a restructuring charge of $30 million.