Armstrong Flooring Reports Q2 Sales Down 11.7%, Income Up
Lancaster, PA, August 6, 2019-Armstrong Flooring reported a net sales decrease of 11.7% year over year for Q2 2019. This earnings report compares the company’s current resilient-only business to resilient sales from Q2 2018.
Net income increased 40% year over year.
Says the company, “The decrease in net sales was primarily due to lower volumes and mix, marginally offset by modest price realization in response to tariff related inflationary pressures. Lower volumes in the second quarter of 2019 reflected relative changes in distributor inventory and overall soft end-market demand, particularly in our residential categories. Inventory levels in the distributor channel decreased sequentially compared to the first quarter 2019 but remained moderately elevated at the end of the quarter.”
During Q2 2019, the company repurchased approximately 4.5 million shares for $50.0 million, excluding fees.
Says Larry McWilliams, chairman and interim CEO, “Adjusted EBITDA margin improved in the quarter despite challenging end market demand across our industry, including the winding down of elevated channel inventory levels. We remain committed to investing in our products, people and operations to improve our position with customers. The strength of our balance sheet provides us with the flexibility to continue executing against that objective while capitalizing on value enhancing opportunities.”