Dixie Faces Significant Disruptions

Chattanooga, TN, September 7--The Dixie Group, Inc. announced that, while its facilities received only minor damage, operations in the affected areas were significantly disrupted by Hurricane Katrina. CEO Daniel K. Frierson noted, "We did not experience significant property damage as a result of Hurricane Katrina; however, disruptions to utility, transportation and communications infrastructure and effects of the hurricane on our associates significantly disrupted our order entry, shipping, distribution and manufacturing operations last week. Although we expect to operate at close to normal schedules this week, this storm, together with the effects of Hurricane Dennis and tropical storm Cindy earlier in the third quarter, had a cumulative effect on our operations that will have an impact on our results. While sales in the third quarter of 2005 are expected to exceed those in the third quarter of last year by low to mid-single digits, they will be lower than the levels we achieved in the second quarter of this year. In addition, we now expect that operating income will be lower than year-earlier periods. The long term impact of the hurricane on our operations is not expected to be significant. "We want to extend our gratitude to our associates for their efforts," Frierson added. "Despite disruptions to their personal lives, their dedication and loyalty allowed us to make the best of a difficult situation. Our hearts go out to all of the individuals in the communities affected by this hurricane." The Dixie Group (www.thedixiegroup.com) is a leading marketer and manufacturer of carpet and rugs to higher-end residential and commercial customers through the Fabrica International, Masland Carpets and Dixie Home

Related Topics:Masland Carpets & Rugs, The Dixie Group

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