Welcome Guest | Login | Register
About Pro Blog

Calling all flooring pros - this Blog's for you! Keep up with the latest industry trends and stay connected with other pros. It's a great way to share ideas, ask questions, and share tales…..go on, take the floor!

September 2017
  • S
  • M
  • T
  • W
  • R
  • F
  • S
  •  
  •  
  •  
  •  
  •  
  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
= New Post

Pro Blog

Armstrong World Industries Releases 2010 1st Quarter Results

By FAF Staff Writer, (2049 words) Posted in Business on May 4, 2010
There are (39) comments permalink

In a recent press release, Armstrong World Industries which manufacturers building materials like resilient and hardwood flooring announced its first quarter numbers for 2010. In the report there are small signs that the economy might be improving, although slightly. Hardwood flooring sales were up 2% from the prior years quarter. Spring and Fall are usually the best selling periods for manufacturers so the reults from the 2nd quarter will hopefully shed more light on the current state of the economy.

LANCASTER, PA., May 3, 2010 /PRNewswire via COMTEX/ -- Armstrong World Industries, Inc. (AWI 42.11, -1.44, -3.31%) today reported first quarter 2010 net sales of $658.9 million, down 1 percent, from $668.3 million in the same period for 2009. Excluding a $19 million, or 3 percent, impact of foreign exchange rates, sales decreased 4 percent. Reported 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.

The Company uses adjusted income from operations in managing the business and believes the adjustments provide meaningful comparisons of operating performance between periods. Adjusted income excludes the translation impact of foreign exchange, restructuring charges and related costs, and certain other gains and losses. As detailed in the attached reconciliation to GAAP, these adjustments increased operating income by $13.4 million in the first quarter of 2010 and $1.7 million in the first quarter of 2009.

Reported net loss was $19.4 million, or $0.34 per diluted share. 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. This compared to a net loss of $11.2 million, or $0.20 per diluted share, in the first quarter of 2009. Adjusted net income was $13.7 million, or $0.24 per diluted share, compared to a loss of $0.4 million, or $0.01 per diluted share, on the same basis in 2009.

Significant reductions in operating costs more than offset the impact of lower sales to the 2010 first quarter adjusted operating income. Market trends broadly eased in the quarter. The rate of declines in most commercial and residential markets moderated, resulting in a 3 percent volume decline. Improved cost performance was driven by our manufacturing rationalization and SG&A reductions.

1st Quarter Segment Highlights

Resilient Flooring net sales were $232.6 million in the first quarter of 2010 compared to $241.2 million in the same period of 2009. Excluding an $8 million impact of foreign exchange, net sales declined about 7 percent. Lower sales volumes, particularly in the Americas markets, were the primary cause of the decline. Reported operating loss was $5.2 million compared to a loss of $12.9 million in the first quarter of 2009. The 2009 loss included $2 million of expense related to cost reduction efforts. European Resilient Flooring contributed losses of $7.1 million and $14.9 million, respectively to those totals. Operating loss was cut significantly as lower manufacturing and SG&A costs more than offset the margin impact of lower volume and reduced price realization.

Wood Flooring net sales of $124.3 million in the first quarter of 2010 grew 2 percent from $121.8 million in the prior year's quarter on approximately flat volume and improved product mix. Reported operating loss of $1.6 million in the first quarter was lower than a loss of $7.8 million reported in 2009. The improvement was primarily due to reduced manufacturing expense and the margin benefit from increased sales, partially offset by raw material inflation and increased promotional spending.

Building Products net sales of $267.9 million in the first quarter of 2010 was flat with $266.9 million in the prior year's quarter. Excluding a $10 million impact of foreign exchange, sales decreased by 3 percent. Price realization was down across geographies, volume declined in the Americas and European product mix was less profitable. Reported operating income increased to $42.7 million from $31.8 million in the first quarter of 2009. Reduced manufacturing expenses, higher earnings from WAVE and lower European input costs more than offset the margin impact of lower sales in local currency.

Cabinets 2010 first quarter net sales of $34.1 million were 11 percent below sales of $38.4 million in 2009 due to less volume. Reported operating loss for the first quarter of $3.9 million was better than the prior year's $4.5 million loss. Operating loss decreased primarily due to reduced SG&A expenses, partially offset by the margin impact of lower sales.

Unallocated corporate expense of $18.6 million in the first quarter of 2010 compared to expense of $5.5 million in the first quarter of 2009. 2010 adjusted unallocated corporate expense was $4.3 million, with the adjustment of $11 million of severance expenses for our former Chairman and Chief Executive Officer and a $3 million asset impairment charge related to the termination of our flight operations.

Free cash flow was a use of $30 million in the first quarter of 2010 compared to a use of $45 million in 2009. The improvement was primarily due to a smaller increase in working capital.

Outlook

Global macroeconomic forecasts have modestly improved although most key markets are still expected to decline. North American commercial markets are expected to decline between 5 percent and 10 percent. North American residential markets are expected to be roughly flat, with an anticipated 14 percent improvement in U.S. housing starts, primarily in the second half, and a 2 percent increase in renovation. European markets are anticipated to decline approximately 5 percent.

Management expects 2010 sales to be between $2,700 million and $2,900 million. The adjusted operating income forecasted range has improved to between $150 million and $175 million, compared to $157 million in 2009. 2010 adjusted EPS is expected to be $1.35–$1.60 per diluted share, compared to $1.43 per diluted share in 2009. 2010 cash taxes are estimated to be less than $10 million. A 42 percent tax rate will be utilized for adjusted earnings to facilitate comparability from period to period. Free cash flow is anticipated to be between $50 million and $75 million.

Adjusted figures are reconciled to GAAP in tables at the end of this release.

Earnings Webcast

Management will conduct a discussion for shareholders during a live Internet broadcast beginning at 1:00 p.m. Eastern time today. This event will be broadcast live on the Company's Web site, www.armstrong.com. From the homepage, click "For Investors" to access the call and the accompanying slide presentation. The replay of this event will also be available on the Company's Web site.

Forward Looking Statement

These materials contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act. Such statements provide expectations or forecasts of future events. Our outcomes could differ materially due to known and unknown risks and uncertainties, including: lower construction activity reducing our market opportunities; availability and costs for raw materials and energy; risks related to our international trade and business; business combinations among competitors, suppliers and customers; risks related to capital investments and restructurings; reduced business with key customers; and other factors disclosed in our recent reports on Forms 10–K, 10–Q and 8–K filed with the SEC. We try to reduce both the likelihood that these risks will affect our businesses and their potential impact. However, no matter how accurate our foresight, how well we evaluate risks, and how effective we are at mitigating them, it is still possible that one of these problems or some other issue could have an adverse effect on our business, profitability, and the carrying value of assets. We undertake no obligation to update any forward-looking statement beyond what is required by applicable securities law.

About Armstrong and Additional Information

More details on the Company's performance can be found in its Form 10–Q, filed with the SEC today. To supplement its consolidated financial statements presented in accordance with accounting principles generally accepted in the United States (GAAP), Armstrong provides additional measures of performance adjusted to exclude foreign exchange, and certain, expenses, gains and losses. The Company uses these adjusted performance measures in managing the business, including communications with its Board of Directors and employees, and believes that they provide users of this financial information with meaningful comparisons of operating performance between current results and results in prior periods. The Company believes that these non–GAAP financial measures are appropriate to enhance understanding of its past performance as well as prospects for its future performance. A reconciliation of these adjustments to the most directly comparable GAAP measures is included in this release and on our website. These non–GAAP measures should not be considered in isolation or as a substitute for the most comparable GAAP measures. Non–GAAP financial measures utilized by the Company may not be comparable to non–GAAP financial measures used by other companies.

Armstrong World Industries, Inc. is a global leader in the design and manufacture of floors, ceilings and cabinets. In 2009, Armstrong's consolidated net sales totaled approximately $2.8 billion. Based in Lancaster, Pa., Armstrong operates 36 plants in nine countries and has approximately 10,600 employees worldwide. For more information, visit www.armstrong.com.

image: blog cloud comment

Comments (39)

scooby posted on: July 16, 2012

Free cash flow was a use of $30 million in the first quarter of 2010 compared to a use of $45 million in 2009. The improvement was primarily due to a smaller increase in working capital. calories in beer

pandan posted on: August 10, 2012

The Company provides active asset management in many major investment centers throug GT-i9300
hout the world. Legg Mason is headquartered in Baltimore, Maryland, and its common stock is listed on the New York Stock Exchang the moment sweetie bracelets are extremely favorite

Hermes scarf posted on: August 27, 2012

It is very interesting and worth reading. Hermes birkin

GT-I9300 posted on: August 29, 2012

A very nice article is written in this blog and all the thought are expressing through this article. In this article the way of expressing thoughts are very nice and it is short and sweet which i like the most here. -- Zenithink C71

GT-I9300 posted on: November 1, 2012

Thanks for your great article! It remains useful.I wish that you will continue publishing your wiseness with us.

Cheap Cell Phone posted on: November 30, 2012

I'm very loved with this side. Its a pleasant subject. It assist me to greatly to resolve some problems. Its chance are extremely fantastic and dealing style so fast. It might be help everyone. Thanks.

davieshall1 posted on: December 20, 2012

However, no matter how accurate our foresight, how well we evaluate risks, and how effective we are at mitigating them, I wonder why the opposite consultants of this sector don't notice this. you need to continue your writing.
need to buy masters dissertation help

Renault CAN Clip posted on: January 10, 2013

Thanks for the awesome information, I liked your site.DEMI

Autocom Cdp Pro For Trucks posted on: January 27, 2013

Its just incredible how much you can take away from something simply because of how visually beautiful it is. You've put together a great blog space UNA

ffffffff posted on: January 30, 2013

cheap true religion jeans online Fashion bazaar is under joined modify and always be in par true religion jeans outlet online with all the absolute physical appearance craze, there is certainly ask for that will http://www.truereligioneoutlet.us/ acquirement exact adoration Tight pants or skirts.cheap true religion jeans online Manner bazaar is usually in coupled transform and also to often be with par true religion jeans outlet online

b2b marketing consultant posted on: February 2, 2013

very informative blog posting, thanks for sharing

b2b marketing consultant posted on: February 2, 2013

very informative blog posting, thanks for sharing.
b2b marketing consultant, Business development consultancy

vas 5054 posted on: March 11, 2013

Burberry is a major Oughout. ohydrates. artisan and as well company about top quality approach to life about bags and as well ingredients AUTO
digiprog 3
digiprog III

do you love this red heels? posted on: March 17, 2013

Your site is excellent, especially this page did a particularly good job and I like it very much.http://www.highheelsbase.co.uk/sexy-and-noble-design-style-red-high-heel-shoes-p-830.html

Candly posted on: March 25, 2013

Thank you for sharing! buyincoins, where you can buy good products from China directly without any shipping fee.

Celina posted on: March 29, 2013

Well, this is so nice to think about leaving comment here. Nice to meet you all.........:)
Kamagra Oral Jelly | Kamagra

Jedsions posted on: April 10, 2013

Every single time Microsoft releases a different version of its functioning process windows 7 product key, you will find a tiny bit of controversy windows 7 home premium activation key and preventing that normally takes place. And that i comprehend your enjoy for Home windows XP or your attachment to Windows seven, but it's time to embrace the long run.

oakley outlet store posted on: August 19, 2013

Oakley SCALPEL combines the best of oakley outlet store HIGH DEFINITION OPTICS with a look that goes from street to oakley outlet sunglasses sport, and it offers a level of performance oakley store as aggressive as its styling. The optics meet every oakley store ANSI Z87.1 standard for visual clarity.

ertwre posted on: August 23, 2013

http://www.gg.com/ html [url=http://www.bb.com/]ubb[/url]

license course real estate posted on: August 26, 2013

Thanks for sharing these useful information! Hope that you will continue doing nice article like this. I will be one of your loyal reader if you maintain this kind of post! This is one of the best post I found so far.

RES posted on: August 30, 2013

Selective and descriptive blog. I like top comment on the posts that provide ample of points on the subject.

RES

coque HTC One V posted on: September 5, 2013

coquehtc.org vous propose un choix énormes de coque htc one (m7), windows phone (htc 8x).. des accessoires a prix reduit pour tout HTC !

coque HTC One V


Condos Singapore posted on: September 10, 2013

Very nice site and article. Amazing one, I appreciate this work.... This is a wonderful post Hey I see smart blog; I love it greatly because I cannot find anything better than your authors. Thanks, I agree that this will be a great help for me...

JustinSara posted on: September 10, 2013

I recently found much useful information in your website especially this blog page. Among the lots of comments are on your articles. Thanks for sharing.

New Condo Launch Singapore

course in real estate posted on: September 17, 2013

Informational site for me. I think after going with the post I am left with many of the details that are appropriate and suitable for me.

course in real estate

Justin Sara posted on: September 20, 2013

Informational site from where I got to know many of the aspects that relate to this subject and will be helpful for my business as well.

Cheap Condos Singapore

angeliaedwina posted on: February 26, 2014

In the 22nd episode of Replica Watches UK James Bond, the Spy is equipped by Omega for the sixth time in his Fake rolex watches career. This time, just like in Casino Royale, the watch is equipped with any gadget. On the other hand, it is Breitling Replica present on the wrist of 007 for the duration of the film 1 h 47, shorter than usual.

corona swimming pool service posted on: March 9, 2014

The care and maintenance of your swimming pool is not something to take lightly. Without the proper maintenance, your pool can be overrun by bacteria and algae that stain your pool’s plaster. When you choose Brookside Pools for your pool service in Corona, California, you can expect quality cleaning services at reasonable prices.
corona swimming pool service

shubham posted on: April 17, 2014

easter quotes children

jessica posted on: May 7, 2014

Thank you for sharing this wonderful article! I have never seen anything like that before so I really appreciate that. I hope to see more great articles here in the future too so keep it up and good luck to all of you!
Happy Mothers Day 2014
Mother's Day 2014
Mothers Day 2014
Happy Mother's Day 2014
Mothers Day messages
Mother's Day messages

peluang usaha di jakarta posted on: May 16, 2014

kunjungan pertama gan salam kenal
obat kurang darah
obat penyempitan saluran kencing
obat radang paru paru kelenjar payudara
kelenjar payudara
obat tipes untuk anak
obat kanker pankreas
installment loan posted on: April 7, 2015

Thank you a whole lot with an awesome write-up, I recently grab newest assistance, newest suggestions to can easily something’s, let’s desire it's likely you'll present ever again, today investigate installment loan I recently have got holding out pursuing in which placed, thank you a whole lot.

Payday Loans Chula-vista posted on: December 12, 2015

A superb quite great upload. Any one is appropriate. Soon we will be joyful to locate that exceptional web-site. Now click on the listed here Payday Loans Chula-vista And just like realistic comply with that exceptional web-site with thanks definitely unquestionably. Thanks a ton pretty unquestionably.

Jazz posted on: December 12, 2015



purchase email lists posted on: December 28, 2015

This post was very nice to me. I hope everyone will be better. Thanks for sharing.
purchase email lists

Thompkins posted on: August 29, 2017

I’m not that much of a internet reader to be honest but your blogs really nice, keep it up!
I'll go ahead and bookmark your site to come back later.
All the best

icon: cloud post

Talk back - leave a comment

Post a Comment

Post a Comment

  • email a friend
  • delicious
  • digg
  • facebook
>