Why does dracut fail to generate initramfs image for the kernel ?

Issue

• Why does dracut fail to generate initramfs image for the kernel ?

# /sbin/dracut -v --force /boot/initramfs-2.6.32-696.3.1.el6.x86_64.img 2.6.32-696.3.1.el6.x86_64
[...............]
I: Installing /bin/cp
I: Installing /bin/mv
I: Installing /bin/dmesg
I: Installing /bin/rm
I: Installing /bin/ln
E: Failed to install mkfifo

• It stops there and exits.