Mohawk Industries says normal service levels interrupted by delays, errors

In a regulatory filing, Mohawk Industries (MHK) said that, after 2024 ended, the company implemented a new order management system in its Flooring North America segment and incurred more conversion issues than anticipated. Normal service levels were interrupted by delays and errors in shipments and invoicing. “The conversion did not change our manufacturing or financial systems and does not impact any of our previously announced restructuring initiatives,” the company said. “The majority of the system processes have been corrected, resulting in increasing shipping rates which is reducing the backlog to normalized levels. We are addressing errors that occurred with our customers and continue to improve our processes. Our manufacturing and distribution operations are functioning at historical levels. Mohawk will release fourth quarter and full year results as scheduled on February 6, 2025 with the investor call the following day. We will provide additional information relating to the Flooring North America system conversion and its impact at that time.”