Mohawk beats Q1 profit estimates, but warns of tariff uncertainty

May 1 (Reuters) - Home flooring manufacturer Mohawk Industries MHK.N beat analysts' estimates for first-quarter profit on Thursday, as higher productivity, lower tax rates and restructuring actions helped the company offset the impact of rising costs of materials and competitive pricing pressures.

Mohawk said tariffs are likely to influence consumer, new construction and business spending in both the U.S. and abroad, though the full magnitude of these effects remains uncertain.

"Consumer confidence has fallen as individuals have grown increasingly anxious about their future prospects," CEO Jeff Lorberbaum said.

The Calhoun, Georgia-based company has increased inventory levels in preparation for tariffs and expects to incur costs of approximately $50 million at the current 10% rate. It plans to implement price hikes to offset these expenses.

Most of the tiles and some vinyl it imports from its factories in Mexico aren't affected by tariffs because of exemptions under the USMCA trade agreement, the company said.

Mohawk, which operates in North and South America, Europe and Australia, reported revenue of $2.53 billion for the quarter ended March 29. Analysts on average expected a revenue of $2.56 billion, according to data compiled by LSEG.

The company reported first-quarter adjusted profit of $1.52 per share, above analysts' average estimates of $1.41 per share.