CALHOUN, GA - Mohawk CEO Jeffrey S. Lorberbaum says flooring sales in the flooring giant's North America segment increased 40 percent last quarter, with sales of "hard surface products" such as wood laminates and tile growing faster than carpet due to their increasing use in new home construction and residential remodeling.
Sales of almost all product categories improved over the prior year with new laminate introductions enhancing Mohawk's market position, Lorberbaum said. The company is active in Europe, where it acquired Belgium-based IVC earlier this year in a $1.2 billion deal. IVC manufactures vinyl and laminate flooring products, and has operations in Europe and the United States.
"Our Czech wood plant is now operating near capacity with improved costs and margins," says Lorberbaum, "although currency translation of wood products from Malaysia impacted our costs," Lorberbaum said. "Our Belgian LVT (Luxury Vinyl Tile) sales continue to increase as we broaden our product offering, increase production and improve our manufacturing cost and quality. The IVC acquisition adds a strong management team, leading manufacturing capabilities and new market opportunities that we can optimize with our existing business."
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