ICS Magazine

Interface Reports Third Quarter 2001 Results

October 24, 2001
The world's largest manufacturer of modular carpet reports its Third Quarter 2001 financial results.

ATLANTA -- Worldwide commercial interiors products and services company Interface, Inc. (Nasdaq:IFSIA) reported net income of $700,000 on sales of $263 million for the Third Quarter ended Sept. 30. This compares with net income of $9.8 million and sales of $336.7 million for the same period last year. Operating income for the quarter was $10.7 million versus $25.2 million in the same period in 2000.

For the first nine months of 2001, net income was $6.4 million on sales of $856.9 million. This compared with net income of $21.9 million on sales of $953.6 million for the same period a year ago. Excluding the one-time restructuring charge recorded in each period, operating income was $39.2 million for the 2001 nine-month period versus $64.8 million for the 2000 nine-month period.

Interface (www.interfaceinc.com) reported that its revenue and profit levels in its domestic modular business remained healthy, despite the downturn in the commercial interiors sector. Interface attributes this segment's performance to its leading position in modular carpet offerings and to market share gains carpet tile has made in the overall floorcovering market.

The Interface Board of Directors declared a quarterly cash dividend of $0.015 per share payable Nov. 23 to shareholders of record as of Nov. 9, which is a reduction from the previous quarterly dividend of $0.045 per share.

"The downturn in the U.S. economy, exacerbated by the events of Sept. 11th, continues to impact the commercial interiors industry and has resulted in the steepest decline ever in our industry," said Daniel T. Hendrix, Interface president and CEO. "We are aggressively addressing the challenging business environment by taking steps to maintain our industry leadership, even in current economic conditions, and to secure our future when the economy rebounds."

Interface, Inc. is a leader in the worldwide commercial interiors market, offering floorcovering, fabrics, interior architectural products and specialty chemicals, and the world's largest manufacturer of modular carpet. It also provides specialized carpet replacement, installation and maintenance services through its Re:Source Americas service network.