Armstrong To Continue Cost Cutting

Lancaster, PA, Feb. 27, 2009--Armstrong World Industries said Thursday it will cut more jobs in the wake of a $25.5 million fourth-quarter loss that was fueled in part by a 17 percent decline in sales, according to Lancaster Online.

Michael D. Lockhart, Armstrong chairman and chief executive, said in a conference call Thursday that the ailing economy will make 2009 "even more challenging."

Armstrong, which said earlier it would cut between 500 to 600 jobs in North America in the next three months, said it expects to cut an additional 5 percent to 10 percent of its work force this year.

Armstrong expects to gain $10 million in savings by cutting manufacturing capacity. The cuts will include its ceiling line.

Lockhart said the company would announce "capacity reductions next month," and that production lines and even entire plants could be on the chopping block.

"We've already started with (cutting) lines. The real question is can we close a facility, and the guys are in the middle of that analysis," Lockhart said. "The advantages of closing an entire plant are substantial, so it is hard for me to imagine that is not where we will come out."