Armstrong Reports Lower Sales, Operating Income

Lancaster, PA, Oct. 27, 2009--Armstrong World Industries reported third quarter net sales of $753.0 million, down 19 percent, from $929.6 million in the same period for 2008.

Excluding a $31 million, or 2 percent, impact of foreign exchange rates, sales decreased 17 percent.

Operating income from continuing operations was $44.0 million, compared to operating income of $82.2 million a year ago.

Reduced operating costs partially offset the impact of lower sales to the 2009 third quarter adjusted operating income. Market trends experienced in the first half of the year generally continued through the third quarter. Broad weakness across global residential and commercial markets caused sales volume to decline 17 percent.

Resilient Flooring net sales were $282.6 million in the third quarter of 2009 compared to $336.9 million in the same period of 2008. Excluding the impact of foreign exchange rates, net sales declined about 13 percent.

Lower sales volumes, particularly in the Americas, contributed to the decline.

Wood Flooring net sales of $140.1 million declined 18 percent from $171.0 million in the prior year's quarter due to continued declines in residential housing markets.

uarter of 2009 compared to expense of $1.4 million in the third quarter of 2008. 2009 adjusted unallocated corporate expense was $2.4 million, with the adjustment from reported being the previously discussed $31.6 million non-cash charge for accelerated vesting of stock compensation.