DOWN AT DIXIE: Slammed by higher cotton costs, Dixie Yarns Inc. reported earnings dropped 43.2 percent in the fourth quarter and that it lost $3.2 million in the year.
The firm also suspended its dividend “until operating results return to appropriate levels.” Dixie Yarns last paid a quarterly dividend of 5 cents a share in December 1994.
In the quarter, ended Dec. 31, earnings fell to $496,000, or 4 cents a share, from $874,000, or 7 cents, a year earlier. Sales rose 7.3 percent to $171.5 million from $159.9 million, reflecting growth in the carpet business and the acquisition of Patrick Carpet Mills in June 1994.
In the year, the loss of $3.2 million compared with profits of $4.7 million, or 41 cents, in 1993. Sales increased 15.8 percent to $688.5 million from $594.6 million.
Daniel K. Frierson, chairman, said results in 1994 were hurt by lower selling prices on cotton textile products in the first half and higher cotton costs throughout the year.
In its textile business, which makes yarns, industrial sewing threads and knit fabrics, selling prices firmed up in the second half of 1994 and both order backlogs and margins were stronger at the start of the new year. The company plans to focus on specialty textile products while eliminating marginal operations and assets.
PELLON-VILENE SHOW TOUR: Ushering in the brand name change of its nonwovens from Pellon to Vilene, Freudenberg Nonwovens, Chelmsford, Mass., is presenting a “Trends and Techniques ’95 Fashion Collection” on a North American tour through April 26. The fashion showcase, featuring 1996 fall-winter apparel ideas from Pellon-Vilene, will be held today at the War Memorial and Performing Arts Center in San Francisco. From there, it moves to Kansas City’s Ritz Carlton Hotel on March 10; La Maison du Gouverneur, Montreal, March 21; Philadelphia College of Textiles & Science’s Downs Auditorium, on April 20, and Parsons School of Design’s Fashion Exhibition Center, in New York, April 26.