Mohawk Industries Inc. said Monday that the coronavirus pandemic is cutting demand for floorcovering surfaces and has forced the closing or cutback of some plants, including a production facility in Pennsylvania.
The world’s biggest floorcovering company is cutting back some of its production and warned Monday that its first quarter profits will be lower than previous forecasts.
“The spread of COVID-19 is having an increasing impact on the economies where (Mohawk) operates around the world,” the company said in a regulatory filing with the U.S. Securities and Exchange Commission early Monday. “Due to these factors impacting the company’s manufacturing, employees and demand, parts of the Company’s operations have curtailed or suspended production, with Europe being the most impacted in the first quarter. Presently, most of the facilities which have suspended operations are satisfying customer demand by delivering products from existing inventories.”
Mohawk said its first quarter results “will be lower than previously expected” and the company “cannot forecast if or when any further disruptions will occur due to the rapidly changing environment as the COVID-19 pandemic and related events continue to develop.”
Mohawk said its balance sheet remains “very strong” with available cash and borrowing of $1.1 billion under its revolving credit facility.