Mohawk Says Inflation Hurting Demand for Carpet
Mohawk says that inflation is hurting the demand for carpet. The company says that the worsened conditions of the economy are leading the company to longer than expected idling of some of its manufacturing facilities.
The Calhoun, Georgia-based company recycles over 6 million plastic bottles at its facility in Chattooga County, located at the Summerville Industrial Park off Highway 100.
The company said in a recent statement:
Since Mohawk issued its third quarter earnings release on October 27, 2022, the U.S. Federal Reserve has announced two additional interest rate increases. These increases, combined with continuing high inflation and lagging consumer confidence in the U.S. and Europe, resulted in the global residential flooring business softening more than the Company expected in the fourth quarter. In response, the Company increased temporary plant shutdowns, which further compressed margins and lowered quarterly results. In addition, demand in Flooring North America weakened more than the other segments, which led to actions to reduce its inventory levels. The combination of the lower volume, plant shutdowns and the consumption of higher cost carpet inventory decreased the segment’s financial performance for the quarter.