CHATTANOOGA, Tenn.--With the aid of an insurance gain, Dixie Yarns Inc. reported second-quarter earnings improved to $431,000, or 3 cents a share, from $119,000, or 1 cent, a year ago.
Sales inched ahead 0.5 percent in the three months ended July 1, to $177.8 million from $176.8 million.
Daniel K. Frierson, chairman, said in a statement that while the second quarter showed higher sales and earnings than a year ago, the results were lower than expected "primarily due to weak demand from softness in retail sales of textile products and floor covering products."
Earnings were boosted by a $2.87 million business interruption insurance gain recorded by Dixie's floor covering segment. This was partly offset by $1.8 million in charges related to the consolidation of its synthetic yarn manufacturing facilities.
Despite the consolidation charge, the textile segment reduced its operating loss in the second quarter to $1.3 million from a loss of $1.9 million a year ago. In the half, textiles had operating earnings of $482,000 against a loss of $9.1 million. The improvement was due to manufacturing and administrative cost reductions.
Operating earnings for floor coverings grew 5.1 percent to $7.9 million in the quarter and rose 15.3 percent in the half to $14.4 million, boosted by the insurance gain. Looking ahead, Frierson said results for the remainder of 1995 are not expected to improve significantly unless demand for textile and floor covering products improves. For the six months, Dixie Yarns earned $1.3 million, or 9 cents a share, against a loss of $4.2 million. Sales moved ahead 5.6 percent to $359.5 million from $340.2 million.
--Fairchild News Service

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