Armstrong Releases Q4 2015 Results

Lancaster, PA, February 22, 2016—For Q4 2015, Armstrong World Industries, Inc. reported net sales of $577.4 million, or diluted earnings per share of $0.21, compared to $587.3 million in Q4 2014, or diluted earnings per share of $0.19.

The company’s resilient flooring segment sales were $164.5 in Q4 2015, compared to $162.8 in Q4 2014.

The company’s hardwood flooring segment sales were $115.6 in Q4 2015, compared to $113.6 in Q4 2014.

Of the resilient business, Armstrong reported: “Excluding the unfavorable impact from foreign exchange of $4 million, net sales increased by 3.6% driven by volume growth in both the Americas and Pacific Rim and favorable mix performance, which was only partially offset by unfavorable price. Operating income declined due to higher SG&A expenses primarily related to ongoing promotional spending to support go-to-market initiatives in the Americas, unfavorable price and mix and higher manufacturing costs, primarily due to LVT plant startup expenses, which were only partially offset by lower input costs and the margin impact of higher volumes.”

Of its hardwood business, the company said, “Net sales increased as higher volumes more than offset the unfavorable impact from price and mix. Operating income improved driven by lower input costs and the margin impact of higher volumes which more than offset higher manufacturing costs and increased SG&A expense. The comparison was also impacted by a non-cash impairment charge of $10 million recorded in the fourth quarter of 2014 to reduce the carrying value of a Wood Flooring trademark to its estimated fair value and due to additional expenses recorded in the fourth quarter of 2014 associated with the closure of our engineered wood flooring plant in Kunshan China that was closed during the third quarter of 2014.”