"Sales during the first four weeks of July are running significantly above the levels in July a year ago," Frierson added.
"The increase in the average price per unit sold in July gives us confidence that the sales within our business units have returned to a more historical product mix. We now expect our total sales to grow in the 9% to 14% range for the full year in 2006. The introduction of our new carpet tile products in June was well received, and sales of these products will begin to cover some of this operation's start-up costs in the third quarter. Although third quarter results will be affected by a time lag between higher raw material costs and our ability to pass such costs along, we are optimistic that higher sales and the operating and quality improvements we have made will lead to improved operating margins and results in the last half of this year."
Results of discontinued operations reflected a loss of $1,960,000 or $0.15 per diluted share, for the second quarter of 2006, compared with a loss of $95,000, or $0.01 per diluted share, for the second quarter of 2005.
For the first six months of 2006, the loss from discontinued operations was $2,050,000, or $0.16 per diluted share, compared with income of $327,000, or $0.02 per diluted share, in the year-earlier period. The loss from discontinued operations in 2006 was primarily related to settlement expenses for a defined benefit pension plan terminated in June of this year. Including discontinued operations, the company reported net income of $944,000, or $0.07 per diluted share, for the second quarter of 2006, compared with net income of $3,489,000, or $0.27 per diluted share, for the second quarter of 2005.
For the first six months of 2006, net income was $1,779,000, or $0.14 per diluted share, compared with net income of $5,783,000, or $0.45 per diluted share, in the 2005 period.
The Dixie Group is a leading marketer and manufacturer of carpet and rugs to higher-end residential and commercial customers through the Fabrica International, Masland Carpets and Dixie Home brands.
marketing@alchempro.com
