Armstrong Flooring CEO Don Maier characterized the company’s second-quarter results as “disappointing” and said they fell short of expectations, noting that the company’s legacy categories of residential sheet and wood flooring were the main factors in the “challenging results,” while the company’s LVT category saw double-digit growth.
The company had net sales of $297.3 million in the second quarter, a decrease of 8.1 percent compared with the same quarter in 2016, and net income of $5.4 million, down 22.1 percent from $7.0 million in 2016.
Armstrong’s wood flooring segment had net sales of $109.5 million, down 15.1 percent from its 2016 sales of $129.0 in the quarter, and operating income for the segment flipped from an income of $0.4 million in 2016 to a loss of $2.6 million in the second quarter of 2017.
The company also announced it will close two wood flooring plants, a solid wood flooring plant in Jackson, Tenn., and a plant that manufactures core veneer and plywood for engineered flooring in Vicksburg, Miss., a decision it said “was made primarily to rationalize the plant network in response to challenging demand.” See the story about the plant closings here.
Based on first-half results and current market conditions, for the full year of 2017 Armstrong said it now expects adjusted EBITDA to be in the range of $60 million to $70 million, as compared with its prior range of $75 million to $85 million. The full news release can be found here.
