Despite a 29.4 percent increase in sales this spring, the Dixie Group, Inc., today said it lost $605,000, or 4 cents per share, from continuing operations in the second quarter.
The Chattanooga-based carpet maker boosted sales in the quarter to $108.2 million, due in part to the March acquisition of Atlas Carpet Mills. Overall industry sales this spring were up only slightly, but Dixie continues to gain market share through its acquisitions and strong gains in commercial and upscale residential product lines.
Income from continuing operations, excluding manufacturing integration, facility consolidation, asset impairment and acquisition related pre-tax expenses of $2.2 million, was $772,000 after-tax, or 5 cents per share.
"The second quarter was a transitional quarter operationally, with operations improving throughout the quarter but still not fully up to expectations," Dixie CEO Dan Frierson said in a statement. "We completed the shutdown of the Atlas dye house in May. It is under contract for sale in the third quarter of this year."
Dixie is also in the process of re-aligning its warehouse distribution and during the second quarter installed equipment for its new Adairsville facility, which opened in mid June.
Dixie is also closing its carpet and yarn dyeing operation in Atmore, Ala. We are still installing additional equipment in our Susan Street facility to accommodate the dyeing needs of Atlas. That should be completed in the third quarter.
Read more in tomorrow's Times Free Press.
Dave Flessner is the business editor for the Times Free Press. A journalist for 35 years, Dave has been business editor and projects editor for the Chattanooga Times Free Press, city editor for The Chattanooga Times, business and county reporter for the Chattanooga Times, correspondent for the Lansing State Journal and Ingham County News in Michigan, staff writer for the Hastings Daily Tribune in Nebraska, and news director for WCBN-FM in Michigan. Dave, a native ...