The Dixie Group on Thursday reported a third quarter loss from continuing operations of $547,000 compared to a $573,000 profit a year ago.
But for the first nine months of this year, the Dalton, Ga.-based carpet maker has posted a $104,000 profit from continuing operations versus a $2.6 million loss the same period last year.
Dixie Group Chief Executive Daniel K. Frierson said company floorcovering sales for the quarter were up year over year by 3.1 percent while the industry, it believes, was down slightly.
"For the year to date, our floorcovering sales were up 5.9 percent against prior year and a market that was marginally down year over year," he said in a statement.
The company's third quarter sales were $102.7 million, or 2.3 percent above the same quarter a year ago, Dixie reported.
Frierson said the fourth quarter has started off upbeat with sales for its floorcovering business up 11 percent over the first five weeks as compared to this same time in 2016.
"We are excited about the opportunities in the market and feel that with home resales at a healthy clip and the economy showing increasing strength in hiring, we will continue to see opportunities for growth in the floorcovering market," Frierson said.
Dixie reported operating income of $767,000 in the third quarter compared with operating income of $1.9 million a year ago. In the first nine months, Dixie posted operating income of $4.6 million compared with an operating loss of $522,000 in the same period last year.
During the first nine months of 2017, operating income was positively impacted by higher production levels in plants, according to Dixie.
The company said it had higher order volume than the prior year period resulting in increased absorption of fixed costs partially offset by higher raw material costs and startup expenses for its expanded skein and beck dyeing operations in its Colormaster facility, its Porterville yarn processing and a new yarn processing and precoat operations in its Atmore facility.
Shares of Dixie closed Thursday up by more than 4.6 percent, or 17.5 cents per share, on the Nasdaq exchange after the company earnings results were released.