Armstrong Per Share Earnings Decline Over 50%

Lancaster, PA, May 2, 2008--Armstrong World Industries Inc. today reported first quarter net earnings of $15.2 million, down from $26 million a year ago.

That translates to $0.26 per share, down from $0.55 a year ago.

Net sales were $828.2 million, down 4 percent, from $863.4 million in the same period for 2007.

Excluding a $28 million, or three percent, benefit from foreign exchange rates, sales decreased 7 percent.

Reported operating income from continuing operations decreased to $38.5 million from $65.5 million in the first quarter of 2007.

Armstrong said continuing declines in the U.S. housing market hurt earning, especially compared to last year's strong first quarter.

Resilient flooring net sales were $292.7 million in the first quarter of 2008, compared to $290.6 million in the same period of 2007. However, exclusing favorable exchange rates, net sales declines 3 percent.

High-single digit domestic volume declines, primarily in residential vinyl products, and lower international volume offset modest price and mix improvements in North America, the company said.

Wood flooring net sales of $160.3 million in the first quarter of 2008 declined 20 percent from $199.2 million in the prior year quarter, mostly due to the poor homebuilding market.