Armstrong World Industries (Lancaster, Pa.) said Monday its third quarter 2012 results were the strongest it has seen since emerging from its 2006 bankruptcy.
The company's earnings before interest, taxes, depreciation and amortization reached $135 million in the third quarter. What's more, the company's operating income from continuing operations rose 19.2 percent to $108.6 million. The company's net sales fell 5.4 percent during the third quarter to $694.7 million from $734.2 million in 2011; however, its net income rose 43.4 percent to $74 million from a 2011 figure of $51.6 million.
In the wood flooring segment, its net sales for the third quarter of 2012 fell 3.8 percent to $122.4 million from 2011's $127.2 million. Operating income from wood flooring during the third quarter of 2012 fell 22.4 percent to $13.5 million from 2011's $17.4 million. The company noted, "Net sales declined in the third quarter of 2012 as improved volumes only partially offset lower price and mix. Increased sales to the builder channel contributed positively to volumes, but drove less favorable mix. Overall volumes improved, in spite of lower sales in the home center channel and lower sales as a result of the divestiture of the Patriot distribution business, which occurred in the third quarter of 2012.
"This was our strongest earnings quarter since emergence and is a testament to the focused execution of our employees at reducing costs and maximizing productivity," said CEO Matt Espe. ""We continue to see challenging conditions in many of our end markets and will remain focused on growing share through innovation and organic expansion in this uncertain operating environment."
Armstrong updated its full 2012 guidance in its third-quarter report. It lowered its sales outlook and EBITDA guidance and now expects sales to be in the $2.60 to $2.65 billion range and adjusted EBITDA to be in the $385 to $415 million range.
"We continue to execute on our strategic priorities as evidenced by the divestiture of our Cabinets and Patriot flooring distribution businesses, both of which were non-core businesses for Armstrong," said Tom Mangas, senior vice president and CFO. "As a result of these divestitures and continued softness in residential repair and remodel activity, we are lowering our outlook for the balance of the year."
Last week Armstrong announced a 6 percent price hike on wood flooring.
