Armstrong Net Income Falls, Sees Declining Market

Lancaster, PA, Oct. 30, 2008--Armstrong World Industries today reported third quarter operating income from continuing operations decreased to $82.2 million from $85.9 million compared to 2007.

Armstrong reported net earnings of $38.9 million, or $.69 per share, compared to $48.1 million, or $.86, a year ago.

Net sales were $929.6 million, up 2 percent, from $913.3 a year ago. Excluding a $23 million, or 3 percent, benefit from foreign exchange rates, sales decreased one percent.

Adjusted operating income from continuing operations of $92.8 million increased five percent compared to $88.6 million on the same basis.

Adjusted income excludes the impact of restructuring charges and related costs, and certain other gains and losses.

Resilient flooring net sales were $336.9 million, compared to $327.9 million in the same period of 2007. Excluding the favorable impact of foreign exchange rates, net sales declined about one percent.

Wood Flooring net sales of $171.0 million in the third quarter of 2008 declined 11 percent from $191.9 million in the prior year quarter as volume declined with weak residential housing activity.

Armstrong said that North American residential markets will continue to decline significantly, while declines in North American commercial markets are anticipated to remain at mid-single digit levels.