Armstrong Considering Special Dividend

Lancaster, PA, March 13, 2012 -- Armstrong said that its board is considering a special cash dividend of $8.55 per share by May 1.

The payout would total about $500 million.

"This approach is a proactive way to efficiently allocate the company's capital and return value to shareholders at time when conditions in the capital markets are favorable," said CEO Matt Espe.

The dividend to Armstrong's common shareholders would be funded in part by surplus cash on the company's balance sheet, and in part by an additional $250 million of debt Armstrong is looking to raise.

The dividend is contingent on consent from Armstrong's current lenders and obtaining satisfactory terms and conditions, Armstrong said.