Mohawk Cuts Second Quarter Earnings Estimates

Calhoun, GA, July 9, 2008--Mohawk Industries cut its earnings outlook for the second quarter to $1.23 to $1.26 per share, down from its previous estimate of $1.36 to $1.45.

The company said that all its segments have had lower than anticipated sales and margins for the period, due mostly to the continuing decline in the U.S. residential market, slowing European demand and rapidly increasing raw material and energy costs.

Mohawk said it is implementing price increases to offset the rising costs and is continuing its emphasis on containing costs across the company. The company said that during the quarter it paid down approximately $180 million of debt.

The company's second quarter earnings release is scheduled for July 21.