Dixie Group Swings To Second Quarter Profit

Chattanooga, TN, Aug. 4, 2011 -- The Dixie Group reported second quarter net income of $766,000 or $0.06 per share, compared to a net loss of $744,000 in the second quarter last year.

Net sales increased 17.2% for quarter to $69.2 million, compared to $59 million last year.

For the first six months, sales are $135.1 million.

"Our commercial products had growth of 20%, which we believe is significantly above the industry," said CEO Daniel Frierson.

Notable, Dixie said, was growth in the modular carpet tile sector, which continues to exceed broadloom.

The company also said its residential product sales grew over 15% above the same period in 2010.

"This increase is in contrast with sales’ decline for the residential market," Dixie said.

“Having completed six consecutive quarters of sales growth in excess of the industry, we believe that our strategy of continuing to invest in new products during this historic downturn has proven successful and positions us for the future," the company said.

"We have seen significant sales growth at the very high end as evidenced by double-digit sales growth during the period for our Fabrica business as well as for our Masland wool and rug products. We continue to believe that the upper end customer has regained confidence, as demonstrated by our improved sales to the upper end of the market. Our Dixie Home line has had particular success with the Stainmaster products introduced in the last year. Masland Contract continues to see excellent growth in the commercial market, particularly its modular carpet tile products and sales to end users."

Related Topics:The Dixie Group, Masland Carpets & Rugs