Dixie Group reports profit

Published 8:34 am Monday, May 23, 2011

For a second consecutive quarter, Dixie Group, the parent company of Masland Carpets, reported a profit, with sales climbing in the first quarter of 2011.

Previously, Dixie reported its first profitable quarter for the fourth quarter of 2010, which was the first profit that the company had reported since 2008.

In a conference call with analysts on Thursday, Daniel Frierson, chairman and chief executive officer, said the momentum from the last quarter was carrying through to this year.

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“The luxury end of the carpet market began to gain momentum in the fourth quarter of last year, and after a brief weather delay, that momentum continued in the first quarter,” he said.

Dixie’s Masland unit currently employs 410 workers in Atmore and 160 at its plant in Saraland.

With the rise in demand in that final quarter of last year, Masland in Atmore added 50 employees with those employees working overtime to meet the demand of the increasing production.

With the 31 percent rise in sales ($66 million), Dixie Group swung to a $623,000 profit in the first quarter after a $2.53 million loss reported in the same three months of 2010, which turned in to a profit of five cents per share compared to a 20 cents a share loss last year.

With the increase in production, Dixie has been able to spread costs and overcome increases in the amount it pays for the raw materials needed, according to Frierson.

The company based out of Chattanooga, Tenn., is hoping to have a good year, so that it may refinance or pay off some of its debt to avoid penalties on Jan. 15 of next year.

For more information on Masland Carpets & Rugs, visit the Dixie Group’s Web site at www.thedixiegroup.com