Armstrong Adjusted Net Income Rises in 4Q

Lancaster, PA, March 1, 2010--Armstrong World Industries reported fourth quarter net sales of $653.0 million, down 8 percent, from $708.4 million in the same period for 2008.

The company also reported a net loss from continuing operations of $3.8 million, or $0.07 per share, compared to a net loss of $26.2 million, or $0.46 per share, in the fourth quarter of 2008.

Adjusted net income from continuing operations was $12.8 million, or $0.22 per share, compared to $9.8 million, or $0.17 per share, on the same basis in 2008.

The company said that reduced operating costs more than offset the impact of lower sales to the 2009 fourth quarter adjusted operating income.

While declines in most commercial markets continued, residential market declines moderated, resulting in a 10 percent volume decline, the company said in its report.

Resilient flooring net sales were $237.6 million compared to $246.6 million in the same period of 2008. Excluding the impact of foreign exchange rates of $8 million, net sales declined about 7 percent.

Lower sales volumes, particularly in the Americas commercial market, contributed to the decline. Reported operating loss was $6.9 million compared to a loss of $25.4 million in the fourth quarter of 2008.

Wood flooring net sales of $120.7 million in the fourth quarter of 2009 declined 3 percent from $124.5 million in the prior year's quarter as the pace of residential housing market declines slowed. Reported operating loss of $10.2 million in the fourth quarter was lower than a loss of $25.8 million reported in 2008.

For the year ended Dec. 31, net sales were $2.7 billion compared to $3.4 billion in 2008. Excluding a $111 million impact from exchange rates, net sales decreased by 16 percent.

Reported operating income for the year was $90.6 million compared to $210.9 million for the same period in 2008.

Armstrong said it expects a "challenging outlook" for many key markets in 2010. It expects North American commercial markets to decline about 10 percent, with as much as a 5 percent decline in the residential markets.

Armstrong sees a 14 percent improvement in U.S. housing starts, primarily in the second half of the year, and 4 percent declines in renovation. It expects European markets to decline at least 5 percent.