Mohawk forecasts downbeat quarterly profit on tariff woes
23/10/2025 23:34
Oct 23 (Reuters) - Mohawk Industries MHK.N forecast fourth-quarter profit below Wall Street estimates, hit by weaker volumes in its ceramic and flooring segments due to elevated tariffs and sluggish consumer demand, sending its shares down 4.8% in after-hours trading. Luxury vinyl tile, a key product in Mohawk's flooring portfolio, has come under pressure from steep U.S. tariffs on imports from China, which now face duties of up to 145%. "We are managing the impact of tariffs on our U.S. imported product offering through pricing actions and supply chain optimization, and we are reinforcing the value of our domestic manufacturing," said CEO Jeff Lorberbaum. "Based on current trends in our regions, we believe that market volume should remain soft through the end of the year." The levies have driven up costs and disrupted supply chains, prompting the company to shift sourcing and raise prices, further dampening demand in a soft housing market. Mohawk forecasts fourth-quarter adjusted profit between $1.90 and $2.00 per share, below the estimate of $2.14 apiece, according to data compiled by LSEG. On an adjusted basis, Mohawk reported quarterly earnings of $2.67 per share, beating analysts' average estimate of $2.64 per share. The flooring manufacturer, which operates across North America, Europe, Latin America and Australia, posted revenue of $2.76 billion for the quarter, compared with the consensus estimate of $2.73 billion. (Reporting by Apratim Sarkar and Anshuman Tripathy; Editing by Alan Barona) ((Apratim.Sarkar@thomsonreuters.com))