Armstrong Net Loss Grows, Sales Rise

Lancaster, PA, Feb. 28, 2011 -- Armstrong World Industries reported a fourth quarter net loss of $21.0 million, or $0.36 per share, compared to a net loss of $3.8 million, or $0.07 per diluted share, in the fourth quarter of 2009.

Armstrong said net sales were $642.9 million, down 2%, from $653.0 million in the same period for 2009.

Adjusted operating income for the quarter was $18.7 million, a decrease of 28% compared to $25.8 million the previous year.

Excluding a $5 million, or 1%, unfavorable impact of foreign exchange rates, sales decreased 1%.

The company said that in its wood flooring segment sales were down 11% despite modest mix and price improvements. The company said that rising lumber prices added about $20 million of increased cost.

Resilient flooring net sales were $229.3 million in the fourth quarter compared to $237.6 million in the same period of 2009.

Wood flooring net sales were $107.8 million, down from $120.7 million in the prior year’s quarter as residential new home construction and repair remodel activity in North America was down year-over-year.

For the year ended Dec. 31, net sales of $2.8 billion were flat with 2009. Armstrong said adjusted net earnings of $100.8 million, or $1.73 per share, compared to $81.9 million, or $1.44 per share, in 2009.

The company said it expects developed markets to be relatively flat in 2011 and new home starts in the U.S. to be around 600,000, while repair and remodel activity in North America will be close to 2010 levels.