Armstrong's Sales Up 7.6% in Q3, Net Loss of $29.7 Million
Lancaster, PA, November 5, 2021-Armstrong Flooring reported net sales in Q3 increased 7.6% to $168.5 million, compared to $156.6 million in Q3 2020, reflecting growth in the company's North American, China, and Australian business.
Net loss in Q3 2021 was $29.7 million, compared to a net loss of $11.7 million in Q3 2020.
For the first nine months of 2021, net sales were $485.5 million, a 10.1% increase compared to sales of $440.9 million in the first nine months of 2020.
Net loss for the first nine months of 2021 was $22 million versus a net loss of $31.2 million in the first nine months of 2020.
Michel Vermette, president and chief executive officer, commented, "During the third quarter we were able to grow our sales by approximately 8% year-over-year, and we continue to see strong demand for our products, carrying an order backlog of approximately $67 million into the fourth quarter. However, we experienced further supply chain disruptions and inflationary pressures that significantly impacted our profitability. While we are disappointed with our results, we are proactively taking measures to address these issues. To that point, we followed-up on our August price increase by announcing the largest set of comprehensive pricing actions in our history, which became effective November 1st. Additionally, we curtailed our capital expenditures and planned SG&A spend in the third quarter and have taken actions to continue to reduce this spend in the near term. Finally, we are continuing to work to address the disruptions to our supply chain and are expecting a large volume of incoming sourced material in the fourth quarter to help address our backlog and support our go-to-market transformation.”
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