Cleaning & Restoration Breaking News

The Dixie Group Updates Business Outlook

CHATTANOOGA, Tenn.--(BUSINESS WIRE)--April 10, 2003--The Dixie Group, Inc. today announced that its first quarter 2003 results would be adversely affected by lower-than-expected sales volume and higher costs. The Company had anticipated a small profit for the quarter ended March 29, 2003, but now expects to report a loss of approximately $.03 per diluted share.

"Sales in our high-end businesses at Fabrica and Masland continue to show positive comparisons; however, weakness in our home center and factory-built housing markets will result in carpet revenues being approximately 7% below the prior-year level," commented Daniel K. Frierson, chairman and chief executive officer. "While the first quarter is generally the slowest of the year for the carpet industry, typically sales begin to build after January. This trend appears to have been delayed this year by general economic and geopolitical uncertainties, but we expect sales to improve, based on the stronger order entry we have experienced in late March and early April.

"First quarter 2003 margins were negatively affected by lower sales volume, raw material price increases and expenses incurred launching our new Dixie Home product line," Frierson added. "Along with most of our competitors in the industry, we have announced selling price increases beginning in April 2003 to improve margins.

"We addressed sales in our high-end markets in 2002 by intensifying our focus on new product introductions. Despite weakness in most carpet markets, these efforts have had a positive impact on sales levels at Fabrica and Masland. In early 2003, our North Georgia Operations introduced a new collection of products at Surfaces under the Dixie Home name. These products have received significant acceptance in the marketplace, resulting in excellent placement with leading national retailers. We expect this new collection of products to make a sound contribution to our sales and margins beginning in the third quarter."

Did you enjoy this article? Click here to subscribe to i Cleaning Specialist Magazine.

You must login or register in order to post a comment.



Image Galleries

The 2014 Experience Conference and Exhibition

A look in photos at the 2014 Experience Conference and Exhibition, which was held from April 24-26 at the Embassy Suites Convention Center and Spa in Frisco, Texas.


Yes, it's only February now - several weeks or months before the thaw depending on where you live - and hopefully this winter has been a profitable one for your business during the historical slow season. But now's also the time to start planning for the busy season - spring - so that you can hit the ground running. In this episode of The Hitman Advertising Show, John Braun shares tips and tricks on how to make this spring your most profitable yet.
More Podcasts

ICS Cleaning Specialist Magazine


2015 March

The March ICS issue features content on cleaning services, green chemistry, encapsulation, terrazzo floors, educating clients and new products.

Table Of Contents Subscribe

Janitorial Work

In addition to residential and commercial carpet cleaning, do you do any janitorial work on the side?
View Results Poll Archive


The Carpet Cleaner's Book of Unlimited Success! (ebook)

Don’t worry about the recession or about your competition.  Now you can be the owner of over 400 ways for carpet cleaning professionals to make more money and get more jobs!

More Products


Director_Buyer.jpgThe premier resource and reference guide for the cleaning and restoration industries.

Click here to view


facebook_40.png twitter_40px.png youtube_40px.png


Truckmount.jpgEquipment listings and specifications from the leading industry manufacturers.

Click here to view