Dixie Group gets back in the black, sells extrusion facility
CHATTANOOGA, Tenn. -- The Dixie Group Inc. reported net income of $496,000, or 4 cents per diluted share, for the first quarter ended March 30, compared with a net loss of $2.7 million, or 24 cents per diluted share, for the first quarter of 2001. Sales for the first quarter of 2002 were $123.3 million, compared with $133.1 million for the first quarter of 2001.
The company also announced that it executed a definitive agreement to sell its Calhoun, Ga. extrusion manufacturing facility to CAF Extrusion Inc., a subsidiary of Collins & Aikman Floorcoverings Inc., for $30.8 million. The transaction will include a three-year supply agreement with the purchaser. The sale of the facility, which is scheduled to close in May 2002, is subject to certain customary conditions and is expected to result in an after-tax gain exceeding $3.0 million.