Armstrong Swings To Profit on Higher Sales

Lancaster, PA, May 2, 2011 -- Armstrong World Industries reported first quarter net income of $13.5 million, or $0.23 per share, compared to a loss of $19.4 million, or $0.34 per share, in the same quarter last year.

Net sales for the quarter rose 4% to $685.2 million, up from $658.9 million a year ago.

The company said that net sales increased on improved pricing and a favorable product mix, which offset lower volume.

Results also reflected plant closures and other cost cutting measures.

The firm also said it will build a heterogeneous flooring plant in China on the same site as its recently announced homogeneous flooring plant.

The plant is expected to be operational in mid 2013.

"We continue to expect developed markets to be relatively flat in 2011," said Chief Financial Officer Tom Mangas.

The company said it expects new home starts in the U.S. to be around 600,000 and anticipates the repair and remodel activity in North America will be close to 2010 levels.

"Inflation in our raw materials, especially those tied to petroleum costs, continues to be the primary risk to our 2011 guidance," said Chief Financial Officer Tom Mangas.

"If oil prices continue at, or rise from, current levels additional pricing actions may be required to achieve our financial targets."

Resilient flooring net sales rose 0.9% while wood flooring sales fell 10.7%.