AFI Reports Q1 Sales Decline of 2.1% on Reduced Losses
Lancaster, PA, May 7, 2020-Armstrong Flooring reported Q1 2020 net sales of $138.7 million, a 2.1% decline year over year.
The net loss for Q1 2020 was $13.2 million, compared to a loss of $16.7 million in Q1 2019.
The company reports, “The decrease in net sales was primarily due to a decline in China net sales of approximately $5 million, attributable to the early outbreak of the COVID-19 virus in that region. North America net sales increased approximately 2% driven by stronger volumes and favorable mix, partly offset by lower price. Higher North American volume in January and February more than offset decreased activity in March due to the COVID-19 pandemic. Lower price primarily reflected competitive pricing pressure in response to the abatement of tariffs.”
Regarding current COVID-19 activity, the company reports, “Nearly all state and local governments in the U.S. have classified construction as an essential business. However, inconsistent state and local government orders have resulted in varying impacts to the Company’s results across geographies and for some customers. While home centers continue to operate, independent customer retail locations are closed in some cases. Although some commercial projects in the retail sector have been postponed, most education and healthcare projects are moving forward. These factors, together with the social distancing and shelter-in-place guidelines by local authorities, have resulted in a softer demand environment since the second half of March 2020. During the month of March 2020, net sales declined 15% year-over-year, primarily driven by lower North American volume into the end of the period. Preliminary April net sales were down approximately 20% globally compared to April 2019.”
Related Topics:Armstrong Flooring