Armstrong Net Sales Fell 8.1% YOY in Q2, Net Income Fell 22.1%

Lancaster, PA, August 7, 2017-Armstrong reported net sales of $297.3 million for Q2 2017, a decrease of 8.1% compared to $323.7 million in Q2 2016.

Net income for the company was $5.4 million for the second Q2 of this year, compared to $7.0 million in the same period last year.

The resilient flooring segment reported Q2 net sales of $187.8 million, compared to $194.7 million in Q2 2016, while the wood flooring segment reported Q2 net sales of $109.5 million, compared to $129.0 million in the same period last year.

Don Maier, chief executive officer, commented, “Second quarter 2017 results were disappointing to us and fell short of our expectations, with the main driver soft demand in our legacy categories, primarily residential sheet and wood flooring. Our LVT sales continued to grow at a double-digit rate, although they did not fully offset the declines in other areas. In response to the challenging results, which we expect to continue through year end, we are taking active steps to transition our company to deliver our medium term financial goals.”

Maier continued, “We are intensifying our efforts on innovation-based growth initiatives, taking a harder line on costs and rationalizing our manufacturing footprint. We have completed our previously-announced organizational realignment, which we continue to expect to generate annualized SG&A savings of $6 million to $7 million. In June, we completed the acquisition of Mannington’s VCT assets, which improves our capacity utilization as we increase sales in this attractive category using our existing production facilities.”

Related Topics:Armstrong Flooring, Mannington Mills