Armstrong Swings To Loss in Fourth Quarter

Lancaster, PA, Feb. 26, 2009--Armstrong World Industries reported a loss from continuing operations of $26.2 million, or $0.46 per share, compared to income of $21.0 million, or $0.37 per share, in the fourth quarter of 2007.

Fourth quarter net sales were $708.4 million, down 17 percent, from $852.4 million in the same period for 2007.

Excluding a $27.5 million, or 3 percent, impact of foreign exchange rates, sales decreased 14 percent.

Armstrong reported an operating loss from continuing operations of $6.5 million compared to operating income of $51.1 million in the fourth quarter of 2007.

Armstrong said there were double-digit volume declines across most businesses and geographies.

Resilient Flooring net sales were $246.6 million compared to $289.4 million a year ago.

Wood Flooring net sales of $124.5 million represented a decline of 34 percent from $188.8 million in 2007.

For the year ended Dec. 31, net sales were $3.4 billion, compared to $3.54 billion in 2007. Excluding a $57 million favorable impact from exchange rates, net sales decreased by 6 percent.

Volume declines offset modest price improvements and a small benefit from a better product mix.

Reported operating income for 2008 was $210.9 million compared to operating income of $296.7 million in 2007.

Reported earnings from continuing operations were $80.4 million, or $1.42 per share, compared to $152.8 million, or $2.69 per share in 2007.

Armstrong said that North American commercial floor markets are expected to decline 12 percent to 15 percent and declines in North American residential floor markets are estimated to be 15 percent to 20 percent, with an anticipated 30 percent incremental decline in U.S. housing starts and low-double-digit declines in renovation.