Dixie Group Swings to Profit on Higher Sales

Chattanooga, TN, May 12, 2011 -- The Dixie Group reported net income of $623,000 for the first quarter, compared to a loss of $2.5 million a year ago.

Dixie reported sales of $65.9 million, up from $50.4 million a year ago.

“Dixie had a year-over-year carpet sales improvement--adjusted for a 14-week versus 13-week fiscal period last year--of 21.5% as compared with the industry wide growth of 2.3%," said CEO Daniel K. Frierson.

"In contrast to our growth in all sectors of the market, the industry, for the first quarter of 2011 like the second half of 2010, saw improvement in the commercial sector while showing poor results for the residential sector.

"Dixie’s first quarter residential carpet sales reflected a 22.5% year-over-year increase when adjusted for the number of weeks, while industry sales of residential carpet declined 1.4% compared with the year-earlier first quarter."

Frierson credited continued investment in new products during the economic downturn for its performance.

Wool carpet collections by Masland and Fabrica along with its Stainmaster have all performed well, Frierson said.

"Although severe weakness in the housing industry and tough credit conditions will likely persist throughout this year, we expect improved sales volumes during the second quarter as a result of the normal seasonality of the carpet industry and the strength of our business," Frierson said.

Related Topics:The Dixie Group, Masland Carpets & Rugs