Dixie Group Reports Narrower Quarterly Loss

Chattanooga, TN, Nov. 3, 2010 -- The Dixie Group reported an after-tax loss from continuing operations of $5,012,000, or $0.40 per share, compared with an after-tax loss of $38,442,000, or $3.13 per share a year ago.

Third quarter net sales were $56,676,000 versus $50,487,000 in the same quarter of 2009.

For the nine months ended Sept. 25, Dixie had net sales of $166,188,000, versus $150,698,000, a year ago.

“During the third quarter, we experienced the seasonal summer slowdown with a 4.0% decline in sales relative to the second quarter but still 12.3% ahead of the same period last year," said CEO Dan Frierson.

"The industry had a 2% improvement over the same period last year, thus showing that we continue to outperform the industry in sales growth. Carpet sales for the period were heavily influenced by the value products we introduced in 2009 to provide a wider range of price points to our customers.

"We did continue to experience significant growth at the very high end of the price range with our Fabrica and Masland wool and Masland Avenue woven look products continuing a double-digit increase in sales both for the quarter and the year to date.

“In the fourth quarter we are seeing better growth levels as both our residential and commercial products sales are up approximately 25% during the first five weeks of the quarter."

Frierson said growth in the residential business was influenced by both strong growth in Dixie's Durasilk line, introduced in 2009, and the introduction of new value-oriented Stainmaster products.

Related Topics:Masland Carpets & Rugs, The Dixie Group