Dixie Group warns its Q4 and year-end results won’t meet estimates

CHATTANOOGA, Tenn. -- The Dixie Group Inc. has announced that results for the fourth quarter and year ended Dec. 30, 2000, will be adversely affected by lower-than-anticipated sales revenue, costs related to consolidation of the company's North Georgia operations and the closing of a beck dyeing operation. In addition, the company will recognize non-cash costs related to certain other asset write-offs. The Dixie Group now expects to report a loss in excess of 50 cents per diluted share for the quarter ended Dec. 30. Final results for the fourth quarter and year will be reported on Feb. 14.

"Significant weakness in the factory-built housing market and softness in our other markets during the latter part of the fourth quarter 2000 caused sales to decline approximately 14% below previous expectations," said Daniel K. Frierson, company chairman and CEO. "Production during the fourth quarter was substantially lower as a result of the declining sales and efforts to reduce inventory levels.