Armstrong Net Earnings Down on Flat Sales

Lancaster, PA, Nov. 5, 2010 -- Armstrong World Industries reported third quarter net income of $24.6 million, or $0.42 per share, compared to net income of $64.4 million, or $1.12 per share a year ago.

Net sales were $739.8 million, down 2%, from $753.0 million last year. Excluding a $12 million, or 2%, impact of foreign exchange rates, sales were flat, the company said.

Reported operating income was $45.0 million compared to $44.0 million in the third quarter of 2009.

Resilient Flooring net sales were $275.3 million compared to $282.6 million last year. Higher Pacific Rim volumes and improved domestic and Pacific Rim mix largely offset domestic volume declines, Armstrong said.

Wood Flooring net sales of $119.8 million were down 14% compared to $140.1 million last year.

The company's Building Products unit increased net sales to $309.8 million from $292.1 million last year.

Armstrong also announced that it will pay a special cash dividend of approximately $13.74 per share to Armstrong's common shareholders totaling about $800 million.

Armstrong said that for the year, North American and European commercial markets are expected to decline about 5%. North American residential markets are also expected to be down modestly, with U.S. housing starts anticipated to be between 575,000 and 625,000 units and renovation activity down mid-single digits.

Armstrong expects 2010 sales to be between $2.76 billion and $2.8 billion.