Analyst Impressed With New Armstrong CEO

New York, NY, May 11, 2011 -- Analyst Stifel Nicolaus met with management at Armstrong World Industries this week and came away impressed, according to analyst John Baugh.

He described CEO Matt Espe as enthusiastic and energetic and said the new leader is steering Armstrong toward growth, especially with initiatives overseas.

"Clearly, the company’s long tenure in bankruptcy had created a bunker mentality that the new CEO’s energy and growth plans are addressing," Baugh said.

Baugh noted that ceilings are the most profitable segment at Armstrong, but U.S. vinyl sales could pick up on activity in multi-family housing.

He said the wood business is now down to $480 million in annual volume but management has right-sized the business to generate a positive return versus capital costs at 1 million housing starts.