Armstrong Income Surges While Sales Edge Down

Lancaster, PA, April 30, 2012 -- Armstrong World Industries reported first quarter net income of $18.2 million or $0.31 per share, compared to net income of $13.5 million, or $0.23 per share in the first quarter of 2011.

That's an increase of 34.8% The company said net income increased primarily due to lower income tax expense.

Net sales for the quarter were $668 million, down from $685.2 million a year ago.

Flooring industry analyst Stifel Nicolaus said income was well short of its $0.64 estimate and the $0.54 consensus estimate. In addition, the firm had projected revenue of $697 million.

Armstrong said volumes declined across all businesses and geographies, particularly in Europe.

"First quarter sales came in slightly below our expectations due primarily to weaker demand in North American commercial markets late in the quarter and temporary service issues in our wood business," said CEO Matt Espe.

"We do, however, continue to feel good about our opportunity in residential markets, especially for residential renovation activity as improving consumer confidence drives demand in the second half of 2012."

Resilient floor sales totaled $227.3 million, down from $234.7 million a year ago.

Wood floor sales were $105.6 million, down from $111.0 in 2011.