Armstrong Projects Sales and Earnings

Lancaster, PA, Dec. 27--Armstrong World Industries, according to government filings, projected that its net sales will grow to $4.17 billion in 2007, following its projected emergence from Chapter 11 on July 1, 2003. According to projections prepared for the company¹s proposed Chapter 11 reorganization plan, Armstrong reported that its sales are expected to increase to $3.55 billion in 2004; $3.75 billion in 2005; $3.96 billion in 2006; and $4.17 billion in 2007. Projected net earnings from continued operations are expected to be $132.9 million in 2004; $178.3 million in 2005; $218.2 million in 2006; and $250.3 million in 2007, according to the projections included in the company¹s Form 8-K filed with the Securities and Exchange Commission. The company projects net earnings from continued operations to be $29.3 million for the second half of 2003 on net sales of $1.7 billion. The company's financial adviser, Lazard Freres & Co. LLC, calculated the value of the reorganized company will be $3 billion. Armstrong filed for Chapter 11 on Dec. 6, 2000, to deal with asbestos related liabilities. In November, the company filed a reorganization plan that calls for the dissolution of parent Armstrong Holdings and the creation of a trust for the benefit of present and future asbestos personal injury claimants. The plan is subject to creditor and court approval. In 2001, Armstrong Holdings reported earnings from continuing operations of $ 73.2 million, or $1.79 a share, on sales of $3.14 billion.