The Dixie Group Inc. has reported net income of $1.4 million, or $0.12 per diluted share, for the second quarter ended June 28, 2003, compared with net income of $3.0 million, or $0.25 per diluted share, for the prior-year period.

Sales for the second quarter of 2003 were $132.1 million compared with $140.0 million in the year-earlier period. For the first six months of 2003, the company reported net income of $1.1 million, or $0.09 per diluted share, compared with net income of $3.5 million, or $0.30 per diluted share, for the first half of 2002.

Year-to-date sales in 2003 were $244.1 million compared with $263.3 million in the first six months of 2002.