Published: April 30, 2009 05:39 pm         

Dixie Group says outlook remains unclear

The Dixie Group, a Chattanooga-based floorcovering maker, posted a $35.55 million net loss during the first quarter of 2009 compared to $13,000 in net income in the same period last year.

Net sales fell 33 percent, from $70.72 million in the first three months of 2008 compared to $47.63 million during the same time this year.

“The outlook for our business remains unclear,” Daniel K. Frierson, company chairman and CEO said.

During the first three months of this year, The Dixie Group consolidated its carpet tufting operation in Eton into its tufting, dyeing and finishing plant in Atmore, Ala. The Eton plant has 60 to 65 employees, down from about 100 before the consolidation.

The company reduced staff an additional 13 percent in the first quarter, cutting its total employment by 26 percent since the beginning of 2008. The company has around 1,000 employees. During March, the company also reduced the pay for all exempt salaried associates. The company’s cost to downsize its East Coast operations and reduce staff “is now substantially behind us.”

“The full effect of these actions, additional staff reductions we have made, together with salary reductions, should have a positive impact on our results for the remainder of this year,” Frierson said.

     

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