During the second quarter of 2011, Armstrong Word Industries' net sales were $748.6 million, which is an increase of 3.3% over the same quarter in 2010 but relatively flat when the impact of favorable currency exchange is excluded. Net income, however, rose from $26.8 million in the second quarter of 2010 to $37.9 million last quarter, a 41.4% increase.
For wood flooring, net sales rose 5% from $127.2 million in the second quarter of 2010 to $133.6 million last quarter; Armstrong reported that "price, volume and mix were all positive contributors." Wood flooring net income rose to $13.4 million from $1.1 million in the second quarter of 2010; that increase was attributed to reduced manufacturing and SG&A costs, as well as improved sales.
"I am pleased to announce that, on an adjusted basis, EBITDA was up 24% from Q2 2010 levels, on relatively flat sales," said Matt Espe, President and CEO, in a release. "Volumes were down in most of our business reflecting the cautionary economic environment in which we continue to operate. We were, however, able to achieve increased profitability through the continued execution of our cost savings plans, pricing ability, mix gains from new products and leverage of LEAN investments."
The company has adjusted its economic outlook for 2011 downward from the end of the previous quarter. "We now expect our residential and commercial end markets opportunity to be slightly lower as the domestic economic recovery appears to be delayed," said Tom Mangas, Senior Vice President and CFO. "We continue to expect emerging markets' GDP to continue to grow in the high single digit range."
The full results from the second quarter can be found here.
