Armstrong World Industries (Lancaster, Pa.) has told investors that it could be subject to "material" import duties-significant costs that could affect its stock price-if an adverse ruling is reached by federal investigators in a probe of unfair trade allegations directed at engineered flooring manufacturers in China.
Armstrong owns an engineered flooring manufacturing plant in China, and it also imports engineered flooring to the U.S. from suppliers in China. The company disclosed the risk in its latest 10-Q filing with the U.S. Securities and Exchange Commission (SEC). Armstrong tells its investors that under U.S. law, "a U.S. importer may be responsible for the payment of any antidumping and countervailing duties." The Coalition for American Hardwood Parity (CAHP), a group of U.S. manufacturers of engineered wood flooring, filed petition with the U.S. Department of Commerce (DOC) and the International Trade Commission (ITC) on Oct. 21 seeking the duties.
"The Department of Commerce and the International Trade Commission have only just commenced their investigations," according to the filing, "and the outcome of the cases are uncertain. As a result, at this time we cannot say whether an adverse ruling is probable or estimable."
Wood flooring manufacturers in CAHP include: Anderson Hardwood Floors (Clinton, S.C), Award Hardwood Floors LLP (Wausau, Wis.), Baker's Creek (Jackson, Miss.), From the Forest LLC (Weston, Wis.), Howell Hardwood Flooring (Dothan, Ala.), Mannington Wood Floors (Salem, N.J.), Nydree Flooring (Forest, Va.) and Shaw Industries Inc. (Dalton, Ga.).
