Tennessee based leading maker and marketer of carpet, The Dixie Group Inc reported income from continuing operations of $926,000, or $0.07 per diluted share, for the first quarter ended April 1, 2006, compared with income from continuing operations of $1,872,000, or $0.15 per diluted share, for the first quarter of 2005. Sales for the first quarter of 2006 were $79,173,000, up 10 percent from sales of $72,034,000 in the year-earlier quarter.
Commenting on the results, Daniel K. Frierson, chairman and chief executive officer, said, "First quarter results reflected an 11 percent gain in our sales of carpet products, driven by a 16 percent increase in revenue from commercial carpet products and a 9 percent increase in revenue from residential carpet products.
All of carpet businesses grew during the first quarter; however, a significant portion of the revenue growth was split equally between our commercial and Dixie Home products.
"Our first quarter profit performance continued to be negatively affected by issues associated with the rapid growth over the past several years that over-taxed our operating capabilities beginning in the second half of 2005.
Outsourcing of tufting production during the start-up of our new North Georgia tufting operation and its related cost and quality issues, expenses associated with the start-up of our new tufting and tile manufacturing operations, and higher fixed costs all had a negative impact on first quarter 2006 results.
marketing@alchempro.com
