Mohawk Downgraded by Morgan Keegan

New York, October 22, 2007--Analysts at Morgan Keegan downgrade Mohawk Industries Inc (MHK.NYS) to "market perform," while reducing its estimates for the company.

In a research note published this morning, the analysts mention that Mohawk has posted its third quarter earnings per share ahead of the estimates and the consensus, primarily due to results at Unilin and a reduced tax rate. Mohawk Industries has issued its EPS guidance for fourth quarter at $1.47-$1.56, which is significantly below the estimates.

The downgrade in the rating reflects a weak earnings outlook, rising costs of raw materials and a challenging macroeconomic environment, Morgan Keegan says.

The EPS estimates for FY07 and FY08 have been reduced from $6.44 to $6.26 and from $7.07 to $6.50, respectively.