Armstrong World Industries has released its first quarter results.
The company reported net sales down 6.5% from $590 million in 2014 to $551.4 million for the first quarter this year; Armstrong's operating income is down 33.5% from $53.8 million in 2014 to $35.8 million this year and a 78.8% change in diluted earnings per share from $0.33 in 2014 to $0.07.
"While the year started slowly, we saw activity accelerate throughout the quarter and our sales and adjusted EBITDA guidance for the year remain unchanged," said Matt Espe, Armstrong's CEO. "We continue to make progress on the separation and I'm pleased to announce the board has designated Larry McWilliams to serve as chairman of Armstrong Flooring upon completion of the separation, and Jim O'Connor will remain chairman of Armstrong World Industries. Larry and Jim have each been tremendous assets to Armstrong over the past several years and will provide both companies with a steady hand through the separation and excellent strategic leadership moving forward."
Excluding the unfavorable impact of foreign exchange of approximately $2 million, Armstrong's resilient flooring net sales decreased driven by lower volumes primarily in the Americas and unfavorable price and mix. Operating income declined driven by unfavorable price and mix, increased SG&A expenses and the margin impact of lower volumes which were partially offset by lower manufacturing input costs. Armstrong reports a drop of 4.2% in total segment net sales from $163.7 million in 2014 to $156.8 million for the first quarter of 2015.
The company's wood flooring net sales declined as improvements in price and mix were more than offset by volume declines. The volume declines were caused by market share shifts as a result of prior year price and mix optimization actions and inventory adjustments at home centers. Operating income declined primarily due to the margin impact of lower volumes and increased manufacturing and input costs, which were only partially offset by positive price and mix. Armstrong reports a 13.1% change in total segment net sales from $118.1 million in 2014 to $102.6 million.
For more information, visit armstrong.com.
