Mohawk Industries (MHK, Financial) has recently disclosed challenges faced during the implementation of a new order management system in its Flooring North America segment. The company experienced more conversion issues than anticipated, leading to interruptions in normal service levels due to delays and errors in shipments and invoicing. Despite these challenges, the conversion did not affect Mohawk's manufacturing or financial systems, nor did it impact any previously announced restructuring initiatives.
The company has made significant progress in correcting the majority of the system processes, resulting in increased shipping rates and a reduction of backlog to normalized levels. Mohawk is actively addressing errors that occurred with customers and continues to improve its processes. The company's manufacturing and distribution operations are reportedly functioning at historical levels.
Mohawk Industries is scheduled to release its fourth quarter and full year results on February 6, 2025, with an investor call planned for the following day. During this call, the company will provide additional information regarding the Flooring North America system conversion and its impact.
This disclosure is being furnished and is not deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.
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