Analyst Downgrades Mohawk Shares

New York, NY, Sept. 8, 2008--An analyst downgraded shares of Mohawk Industries Inc. on its exposure to weakening U.S. nonresidential and European markets and the stock's summer surge.

Michael Rehaut of JPMorgan, who cut his rating on the shares to "Underweight" from "Neutral," said their 22 percent gain since July 14 gives it one of the highest premiums in the sector. The analyst attributed the gains to the post-July 11 crude oil price decline.

Rehaut also said he expects U.S. private nonresidential construction, which represents about 24 percent of Mohawk's sales, to turn negative in the first quarter of next year, with declines accelerating through 2009.

The analyst cut his earnings per share estimate for Mohawk for fiscal 2009 to $4.20 from $4.80. Analysts polled by Thomson Reuters expect, on average, $4.51.