Atlanta, GA, Oct. 23—Interface Inc.’s results for the third quarter ended September 30 were consistent with guidance provided on October 1. For the third quarter, the company had net income of $0.7 million, or $0.01 per diluted share, before a non-recurring restructuring charge, and sales of $263 million, compared with third quarter 2000 net income of $9.8 million, or $0.19 per diluted share, and sales of $336.7 million. Operating income for the third quarter was $10.7 million, excluding the one time restructuring charge, versus $25.2 million in the same period a year ago.

Interface recorded a pre tax restructuring charge in the third quarter of approximately $62 million ($0.83 per diluted share after tax), primarily attributable to exiting European broadloom and rationalizing American broadloom and access flooring businesses. Including the charge, the net loss for the third quarter was $41.3 million, or $(0.82) per diluted share.

Revenue and profit levels in the company's domestic modular business remained healthy, despite the downturn in the commercial interiors sector. Interface attributes this segment's performance to the company's leading position in modular carpet offerings and to market share gains carpet tile has made in the overall floorcoverings market. Nevertheless, carpet tile sales in Europe and Asia-Pacific softened after September 11th. Profitability in the company's domestic broadloom operations improved from the second quarter, primarily due to lower raw material costs, stabilized energy prices, and the realization of increased manufacturing efficiencies resulting from steps taken over the past year to rationalize that business.

Revenue in the company's U.S. broadloom and U.S. access flooring businesses declined moderately in the third quarter, due to industry conditions, though both showed firming trends in new orders and profitability. The interior fabrics segment also showed signs of stabilizing, as order and billing trends remained consistent with those of the second quarter. Re:Source Americas, the company's floorcoverings dealer network, maintained break even performance on sales declines in line with industry declines.

For the first nine months of the year, net income was $6.4 million, or $0.13 per diluted share, before the third quarter restructuring charge, on sales of $856.9 million. This compared with net income of $21.9 million, or $0.43 per diluted share, before a non-recurring, pre tax restructuring charge of approximately $20 million ($0.27 per diluted share after tax), on sales of $953.6 million for the same period a year ago. Excluding the one time restructuring charge recorded in each period, operating income was $39.2 million for the year to date versus $64.8 million for the same period a year ago.

Including the third quarter restructuring charge, reported net loss for the first nine months was $35.6 million, or $(0.70) per diluted share, compared with net income of $8 million, or $0.16 per diluted share, for the first nine months of last year.

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