Armstrong Sees Higher Operating Income

Lancaster, PA, May 3, 2010--Armstrong World Industries reported a first quarter 2010 net loss of $19.4 million, or $0.34 per share, compared to a net loss of $11.2 million, or $0.20 per share, in the first quarter of 2009.

Net sales were $658.9 million, down 1%, from $668.3 million in the same period for 2009.

Operating income was $13.4 million compared to $1.1 million in the first quarter of 2009. Adjusted operating income of $26.8 million increased significantly compared to $2.8 million on the same basis.

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

The company recorded a $21.6 million deferred income tax charge to reflect the change in tax deductibility of retiree health costs related to Medicare Part D subsidies.

Armstrong said the rate of declines in most commercial and residential markets moderated, resulting in a 3% volume decline.

Resilient Flooring net sales were $232.6 million in the first quarter, compared to $241.2 million in the same period a year ago. Excluding an $8 million impact of foreign exchange, net sales declined about 7%.

Lower sales volumes, particularly in the Americas markets, were the primary cause of the decline, Armstrong said.

Wood Flooring net sales were $124.3 million, an increase of 2% from $121.8 million in the prior year's quarter.

The company expects the North American commercial markets to decline between 5-10%, with a flat residential market.