Armstrong World Industries (Lancaster, Pa.) reported a decrease in net sales in the fourth quarter of 2015 and a negative net income. The report sent the company’s stock down after its release on Monday.
Net sales declined 1.7 percent from the same period in 2014, to $577.4 million. Operating income fell 75.5 percent to $8.8 million, and net income posted a negative $11.4 million compared with $10.6 million in 2014. The company cited the impact of the separation of its flooring business and higher non-cash U.S. pension expenses as factors in its operating income.
For its wood flooring segment, net sales increased 1.8 percent to $115.6 million, and operating income was $7.5 million after posting a $19.4 million loss in the same quarter of 2014. The company said the increase in net sales came as “higher volumes more than offset the unfavorable impact from price and mix.”
In its year-end results, net sales decreased 3.8 percent to $2.420.0 million and operating income fell 21.6 percent to $187.4 million. The company reported that net sales were flat when excluding the unfavorable impact from foreign exchange.
Armstrong stock was trading at $40.95 on Monday and fell as low as $37.25 before ending the day at $38.35. It was trading at $38.32 as of publication of this article.
The company will host a separation and business update meeting on March 10 where both businesses will provide their 2016 outlook.
The full release is available here.
