Risks for MOHAWK INDUSTRIES INC (MHK)

Here are some interesting risks from the recent filings of MOHAWK INDUSTRIES INC. Our algorithms work hard to highlight risks unique to this company.

The impact of recent tax reforms on the Company's results of operations is uncertain.

The floor covering industry is sensitive to changes in general economic conditions, such as consumer confidence, income and spending, corporate and government spending, interest rate levels, availability of credit and demand for housing. Significant or prolonged declines in the U.S. or global economies could have a material adverse effect on the Company’s business.

The Company may be unable to predict customer preferences or demand accurately, or to respond to technological developments.

The Company faces intense competition in the flooring industry that could decrease demand for the Company’s products or force it to lower prices, which could have a material adverse effect on the Company’s business.

If the Company were unable to meet certain covenants contained in its existing credit facilities, it may be required to repay borrowings under the credit facilities prior to their maturity and may lose access to the credit facilities for additional borrowings that may be necessary to fund its operations and growth strategy.