Dixie Group reports loss in quarter

Dixie Group reports loss in quarter

May 7th, 2012 by Mike Pare in Local - Breaking News

Pictured is a detail of one of the spools, or packages, of thread in the creeling area of the Dixie Group plant in Eton, Georgia.

Pictured is a detail of one of the...

Photo by Jake Daniels /Times Free Press.

Chattanooga-based carpet maker Dixie Group Inc. today reported a first quarter loss after a drop in its commercial business compared to last year.

The company posted sales of $62.8 million, up 2.6 percent after adjusting for the 13-week period this year versus the 14-week period last year, Dixie said in a news release.

But, Dixie reported a loss from continuing operations of $104,000, or 1 cent per diluted share, compared with income of $644,000, or 5 cents per diluted share, for the first quarter of 2011.

Daniel K. Frierson, chairman and chief executive officer, said in a statement the first quarter typically is the slowest and most difficult one for the business.

"Our growth in the residential business, on an adjusted basis for weeks in the period, was 5.7 percent, in excess of the residential market growth of low single digits," he said.

But, Dixie's commercial business declined 8.2 percent relative to a particularly strong sales period a year ago on a calendar adjusted basis, the company reported.

See Tuesday's Times Free Press for full story.