Armstrong reports increased earnings for first quarter

Home Inside FCNews Armstrong reports increased earnings for first quarter

Lancaster, Pa.—Armstrong World Industries reported operating income for the first quarter at $13.4 million, compared to $1.1 million for the same period last year. The period’s net sales were down only 1% at $658.9 million, from $668.3 million in the same period for 2009. Excluded was a 3%, or $19 million, foreign exchange rate impact, which decreased sales by 4%.

Reductions in operating costs were credited for offsetting the impact of lower sales to the adjusted operating income. The company uses adjusted income from operations in managing business, as it is thought the adjustments provide meaningful comparisons in operating performance.

Resilient flooring net sales declined approximately 7% from 2009 Q1, excluding an $8 million impact of foreign exchange. While operating loss was cut due to lower manufacturing and SG&A costs, net sales were reported at $232.6 million, compared to $241.2 million in the same period of 2009.

Wood flooring sales grew 2% from $121.8 million in the comparable period, to $124.3 million during this year’s first quarter. Improved product mix, reduced manufacturing expenses, and margin benefits from increased sales were partially offset by raw material costs inflation and increased promotional spending.

Building products net sales were flat at $267.9 million in the first quarter of 2010, in comparison to $266.9 million in the prior year’s quarter. Excluding a $10 million foreign exchange impact, sales decreased 3%.

Armstrong management expects total sales for 2010 to be between $2,700 million and $2,900 million , and adjusted operating income forecast range is estimated somewhere between $150 million and $175 million, as compared to $157 million last year. Free cash flow is anticipated to come in between $50 million and $75 million.

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