DIXIE YARNS BACK IN BLACK FOR 3RD PERIOD
CHATTANOOGA, Tenn. — Dixie Yarns Inc. reported third-quarter earnings of $2 million, or 18 cents a share, against a loss of $6 million a year ago, which included an after-tax loss of $3.1 million from the sale and closing of a manufacturing facility.
Sales for the three months ended Sept. 30 sank 9.9 percent to $145.4 million from $161.3 million.
For the nine months, Dixie earned $2.3 million, or 21 cents, against a loss of $4.7 million in 1995, including the charge. Sales dropped 8.8 percent to $474.9 million from $520.7 million.
“Dixie’s 1996 results continue to show improvement in earnings on lower sales,” Daniel K. Frierson, chairman and chief executive officer, said in a statement. “Both our floor covering and textile businesses significantly improved their operating earnings compared with the prior-year periods, before unusual items.”
Dixie also said it signed a letter of intent to purchase, for $25 million, the business and operating assets of Danube Carpet Mills Inc., a subsidiary of Shelter Components Corp. The sale is expected to close by the end of the year.
Danube, a manufacturer of carpet for the prefab housing and recreational vehicle industries based in Fort Oglethorpe, Ga., expects sales of about $75 million in 1996, Dixie said. The planned acquisition and the recent disposition of the threads business “represent a continuation of our strategy to expand our floor-covering business while concentrating on select targeted markets in our textile business,” Frierson noted.