The Dixie Group has reported lower quarterly profits and sales when compared to the same period a year ago.
The Chattanooga-based carpet maker said net income for the second quarter totaled $1.2 million or 10 cents per diluted share. That compared to $2.4 million or 19 cents per diluted share for the second quarter of 2007.
Dixie said sales for its second quarter amounted to $77.1 million, down nine percent from $84.4 million in the same period a year ago.
“Depressed housing sales and tight credit conditions are expected to continue to affect demand for residential carpet products throughout the remainder of this year,” said Daniel K. Frierson, chairman and CEO. “Although we believe our commercial product sales will grow this year, we expect their rate of growth to slow by year-end.”
Mr. Frierson said new residential and commercial products have been “well positioned and have been well received in the marketplace.” Additionally he said the company’s carpet tile products continue to grow according to projections.
“We expect to continue increasing our market share in 2008 and believe that our business is well positioned to be stronger when industry conditions improve,” he said.
See tomorrow’s Chattanooga Times Free Press for complete coverage.
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