Calhoun, Georgia-based floor covering company Mohawk authorizes $500 million stock repurchase plan

Staff file photo  / Mohawk Industries is shown Wednesday, June 19, 2019, in Calhoun, Georgia.
Staff file photo / Mohawk Industries is shown Wednesday, June 19, 2019, in Calhoun, Georgia.

Mohawk Industries announced Friday a new share repurchase plan to buy back up to $500 million of the company's stock.

Mohawk, the world's biggest floor covering company with headquarters in Calhoun, Georgia, said its directors approved a plan to buy back common shares in open market transactions, block or privately negotiated transactions.

Mohawk shares are up 29% so far this year, but the company's stock price has dropped 20.8% from the peak it reached this year in May.

Mohawk and other floor covering makers have benefited by higher sales from more spending on home construction and improvement, but carpet makers have also been hurt by rising prices of raw materials.

"The number of shares to be purchased and the timing of the purchases are based on a variety of factors, including, but not limited to, the level of cash balances, credit availability, debt covenant restrictions, general business conditions, regulatory requirements, the market price of the company's stock and the availability of alternative investment opportunities," Mohawk said in a statement Friday.

Mohawk said no time limit was set for completion of repurchases and the share repurchase program may be suspended or discontinued at any time.

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