News Flash

Carpet products sales decline 6% in Q1 of Dixie Group

30 Apr '07

3 min read

"Sales of our new modular/carpet tile products, introduced last year, continued to grow and have been well received in our markets. Sales of modular/carpet tile were over $800,000 in the first quarter of this year while the negative impact of this start-up operation on our first quarter results was less than $300,000. We continue to be very optimistic that this new business will grow and make a positive contribution to our operating results during the last half of this year.

"Despite the industry's softness, our emphasis on development and introduction of new and differentiated products has continued. Our new Dixie Home and Office collection of Stainmaster commercial products that will be sold through retail stores and Masland's and Fabrica's wool products collections are on schedule to reach the marketplace later this year. These new products should fuel sales growth."

"Although our sales and order-entry rates for residential products remained weak in April, sales and order-entry rates in our commercial business improved sharply. We are optimistic that conditions in the residential portion of our industry will improve in the last half of this year. The improvement we are seeing in our commercial business and the anticipated effect of our new residential products make us optimistic that our sales will continue to outpace those of the carpet industry," Frierson concluded.

Results related to discontinued operations reflected a loss of $66,000, or $0.01 per diluted share, in the first quarter of 2007, compared with a loss of $91,000, or $0.01 per diluted share, in the first quarter of 2006. Including discontinued operations, the Company reported net income of $171,000, or $0.01 per diluted share, in the first quarter of 2007, compared with net income of $835,000, or $0.06 per diluted share, in the first quarter of 2006.

The Dixie Group Inc

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