Chattanooga, Tenn.-Based Carpet Company Focuses on Product.

Byline: Dave Flessner

Aug. 30--After nine acquisitions in the past seven years, the Dixie Group is turning its focus inward to improve its carpet making performance.

The Chattanooga-based company, which transformed itself from a yarn and threat textile company into a major carpet manufacturer during the 1990s, announced Wednesday that its earnings this year will be below expectations. Shares in Dixie dropped 8.8 percent Wednesday after the company reported that sluggish sales of manufactured homes and production problems in the rapidly growing home center business are cutting company profits.

Dixie dismissed William N. Fry IV as president and chief …