Armstrong World Industries (Lancaster, Pa.) earned $18.2 million during the first quarter of 2012-a 34.8 percent increase over last year-but the company's CEO Matt Espe admitted it could have done better with more wood flooring manufacturing capacity.
Armstrong World Industries (Lancaster, Pa.) earned $18.2 million during the first quarter of 2012-a 34.8 percent increase over last year-but the company's CEO Matt Espe admitted it could have done better with more wood flooring manufacturing capacity.
Both Armstrong's segmented wood flooring net sales and its overall net sales were down during the first quarter of 2012, which ended March 31. The company's wood flooring sales fell 4.9 percent to $105.6 million in the latest quarter from $111.0 million during the same period last year. Its overall net sales fell 2.5 percent to $668.0 million from $685.2 million during the first quarter of 2011.
On its wood flooring sales, Armstrong said, "Shipments were negatively impacted as orders outpaced production capacity." In addition, it noted that volumes, price and product mix were unfavorable compared with 2011, and that lower sales to big box stores were only partially offset by higher sales to independent retailers.
"First quarter sales came in slightly below our expectations due primarily to weaker demand in North American commercial markets late in the quarter and temporary service issues in our wood business," Espe said.
To rectify manufacturing shortages, Armstrong is hiring laborers. On March 26, HF reported that Armstrong was hiring 95 full-time workers at a wood flooring plant in Jackson, Tenn. And in April, HF reported that the company was re-hiring about 75 workers at its wood flooring plant in Beverly, W. Va.
With its earnings report, which was filed on Monday, the company reaffirmed its full-year guidance, noting it would post overall net sales near $2.9 billion.
"End-market demand recovery remains spotty and inconsistent in some markets, especially Europe," Espe said. "We do, however, continue to feel good about our opportunity in residential markets, especially for residential renovation activity as improving consumer confidence drives demand in the second half of 2012."