Dixie Group residential carpet business fall in Q1
29 Apr '08
4 min read
The Dixie Group Inc reported financial results for the first quarter ended March 29, 2008. For the first quarter, income from continuing operations was $82,000, or $0.01 per diluted share, compared with income from continuing operations of $237,000, or $0.02 per diluted share, for the first quarter of 2007. Sales for the first quarter of 2008 were $70,722,000, down 5% from sales of $74,490,000 in the year-earlier quarter.
Commenting on the results, Daniel K. Frierson, chairman and chief executive officer, said, "The carpet industry continued to be adversely affected by declining sales of new and existing residential housing units, difficult credit conditions, and contracting consumer confidence.
Industry sales declined 7% compared with the year-earlier first quarter, while our first quarter carpet sales reflected a 3% year-over-year decline. Our residential carpet business was down 10.6%, slightly less than the industry's residential carpet decline, but our commercial carpet business grew over 10%, well ahead of the industry's commercial carpet growth.
"Our new residential products have been well placed and received favorably by our customers, which should enhance our efforts to continue increasing market share within the markets we serve. Wool carpet collections were introduced late last year by Masland and earlier this year by Fabrica, and we plan to expand our wool product offerings later this year.
Dixie Home's introductions, including the new Lifestyles collection, were well received at Surfaces, and samples already have been shipped to customers. The growth of our commercial carpet business reflects the success of our modular/carpet tile products and our Dixie Home and Office collections of Stainmaster commercial products. Our commercial carpet sales and profitability continue to benefit from these products.
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