Armstrong Flooring (Lancaster, Pa.) announced a net income loss of $41.8 million in 2017, along with a 5 percent decline in net sales.
Armstrong’s loss follows a net income of $9.2 million in 2016. The company’s net sales dropped from $1.19 billion in 2016 to $1.13 billion in 2017.
Net sales for the company’s wood flooring segment fell 11 percent in 2017, from $486.1 million in 2016 to $432.8 million, with an operating income loss of $56 million for the segment.
In a statement, Armstrong CEO Don Maier called market challenges in resilient sheet and wood “unabating,” but said the company was still making progress on its innovation-based growth initiatives.
Armstrong’s overall fourth quarter sales saw net sales drop 3.3 percent, from $271.7 million in the quarter in 2016 to $262.7 million, and a net income loss of $20.7 million (compared with a loss of $6.3 million during the same quarter in 2016).
As for 2018, the company expects to save $10–12 million from its new distributor partnership strategy announced earlier this year, as well as from “a reduction in corporate overhead.”
“In wood, we continue to improve our cost position and sourcing capabilities while exploring licensing options at entry-level price points,” Maier said.
Armstrong’s financial report immediately followed an announcement that it would increase prices of its solid hardwood products by 5-7 percent. It also follows reports that it would lay off as many as 100 white-collar workers.
