Dixie shares drop on lower earnings

A worker moves a roll of carpet at the Dixie Group in North Georgia. Dixie Group has purchased textile manufacturer Burtco Enterprises Inc. for $2.3 million.
A worker moves a roll of carpet at the Dixie Group in North Georgia. Dixie Group has purchased textile manufacturer Burtco Enterprises Inc. for $2.3 million.

Shares of the Dixie Group Inc. are trading lower today after the company reported better profits but lower sales in the third quarter compared with a year ago.

The stock value of the Chattanooga-based carpet company is down nearly 12 percent in trading on the Nasdaq today after reporting income from continuing operations in the third quarter of $573,000, or 4 cents per share, on sales of $100.7 million in the three months ended Sept. 30. A year ago in the same period, Dixie earned $84,000 from continuing operations, or 1 cent per share, on sales of $108.9 million.

"The third quarter started off very slowly but improved throughout the quarter," Dixie CEO Dan Frierson said. "Carpet sales for the quarter were down 6 percent on a comparative year over year basis...We believe that the entire floorcovering market has been impacted by a drop in consumer expectations and political uncertainty this year."

At midday today, Dixie shares were trading at $3,83 per share, down 52 cents or 11.95 percent today.

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