Tuesday, The Dixie Group, Inc. (DXYN), a manufacturer of carpets and rugs, reported a loss for the third-quarter compared to a profit last year hurt by lower sales. The company also said that it is also making organizational changes to reduce staff and expenses.
The Chattanooga, Tennessee-based company reported a third quarter net loss of $0.83 million or $0.07 per share compared to a profit of $2.25 million or $0.17 per share in the corresponding quarter last year.
Loss from continuing operations for the third quarter was $0.73 million or $0.06 per share compared to a profit from continuing operations of $2.24 milion or $0.17 per share in the prior-year similar period.
Loss from discontinued operations for the quarter, net of tax was $101,000 or $0.01 per share compared to a profit from discontinued operations of $9,000 or break even per share in the corresponding period last year.
Net sales for the quarter decreased 11% to $72.92 million from $82.39 million in the comparable period last year.
Income tax benefit for the third quarter was $558,000 compared to an income tax charge of $1.26 million in the corresponding period of fiscal 2007.
For the nine-month period, net income decreased to $0.47 million or $0.04 per share from $4.86 million or $0.37 per share in the similar period last year.
Income from continuing operations for the nine-month period decreased to $0.63 million or $0.05 per share from $5.03 million or $0.39 per share in the prior-year similar period.
Loss from discontinued operations for the nine-month period, net of tax was $167,000 or $0.01 per share compared to a loss from discontinued operations of $175,000 or $0.02 per share in the corresponding period last year.
Net sales for the nine-month period decreased 8% to $220.79 million from $241.28 million in the corresponding period last year.
With regard to organizational changes, the company said that the move would reduce total employment by about 6% on top of the 9% staffing reduction that took place during the second quarter.
During the third quarter of this year, the company purchased 237,186 shares of its common Stock at an average price of $5.97 per share, pursuant to the Company's previously authorized stock repurchase program.
At the end of the third quarter, the company discontinued its common stock repurchase plan to maintain a conservative capital structure during this period of uncertainty. Additional repurchases of the Company's Common Stock may be made based on management's review of developing economic conditions.
The Dixie Group is currently trading at $4.68, up $0.17 or 3.66%, on the Nasdaq.
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