Armstrong World Industries saw an 83.2 percent drop in net income in the first quarter of 2013 compared with the first quarter of 2012. Net income fell to $3.2 million from $19 million the year before. Net sales dropped by $14 million, or 2.2 percent, in the same period.
Armstrong World Industries saw an 83.2 percent drop in net income in the first quarter of 2013 compared with the first quarter of 2012. Net income fell to $3.2 million from $19 million the year before. Net sales dropped by $14 million, or 2.2 percent, in the same period.
The company reported that sales were negatively impacted by the sale of the Patriot wood flooring distribution business in the third quarter of 2012 and by lower commercial volumes, which offset the gains in residential construction.
Armstrong's operating income increased 10.1 percent to $47 million, which the company says is due to cost reduction and restructuring.
The company's wood flooring segment increased net sales 8.6 percent to $114.7 million, but operating income dropped 80 percent to $500,000 from $2.5 million. Increases in manufacturing costs were driven by higher labor costs as Armstrong increased its workforce to respond to the increase in demand. Shipments for solid wood products were negatively impacted as orders outpaced production in the quarter. To address the increased demand, the company is adding additional crews at several solid wood plants.
"We delivered first quarter results in line with the expectations we outlined earlier this year, despite a continued choppy commercial market environment," said Matt Espe, Armstrong president and CEO.
