Mohawk gets called on the carpet

More housing slump fallout: In the after-hours, Mohawk Industries lowered earnings guidance for the second quarter. The company is expecting EPS of $1.23 to $1.26 vs. a previous forecast of $1.36 to $1.45 (and an average estimate of $1.41). Mohawk makes all kinds of flooring products, including carpet, and wood and laminate flooring. An excerpt from the company's release:

"This revision is attributable to all segments having lower than anticipated sales and margins for the period. The lower earnings expectation for the quarter is primarily due to the continuing decline in the U.S. residential market, slowing European demand and rapidly increasing raw material and energy costs. We are implementing multiple price increases to offset the rising costs and are continuing our emphasis on containing costs across the company."