Armstrong Reports Higher Income, Sales
Lancaster, PA, Feb. 24, 2014 - Armstrong World Industries reported fourth quarter net income of $10.8 million, compared to $9.2 million in the fourth quarter of 2012.
Net sales were $661.3 million, a 7.9% increase from $612.8 million in sales in the same period a year ago.
For the year, Armstrong reported sales of $2.7 billion, compared to sales of $2.6 billion for 2012.
Net income for 2013 was $94.1 million, down from $131.3 million in 2012.
Despite the increase in quarterly sales, operating income declined due to increases in manufacturing and input costs driven by rising lumber prices and plant start up costs in Russia, Armstrong said.
"Fourth quarter sales results were in the middle of our guidance range, while weaker than expected global flooring sales and continued lumber inflation resulted in adjusted EBITDA near the low end of our guidance range," said CEO Matt Espe.
"Despite this softness, both our global resilient flooring and ceilings businesses achieved the highest fourth quarter adjusted EBITDA results since emergence."
Resilient flooring net sales for the quarter declined from $212.2 million to $208.2 million, driven primarily by lower volumes in the Americas, the company said.
However, wood flooring sales rose from $107.8 million to $133.1 million. The higher volumes were driven by strong demand from the home center channel and independent distributors, Armstrong said.
Gains in new residential construction drove increased demand from builders.