UPDATE: Armstrong World Industries Posts Stronger-Than-Expected Q3 Earnings

Armstrong World Industries

reported upbeat earnings for the third quarter. The Lancaster, Pennsylvania-based company posted quarterly net income of $31.6 million, or $0.57 per share, compared to $50.4 million, or $0.95 per share, in the year-ago period. Excluding certain items, the company earned $0.83 per share. Its revenue fell to $728.3 million from $729.7 million in the period. However, analysts were expecting earnings of $0.77 per share on revenue of $743.47 million. Net sales in Building Products segment rose 4.8% to $351.7 million, while sales in Resilient Flooring segment slipped 2.7% to $239.6 million. Sales in Wood Flooring segment tumbled 7.4% to $137 million. Operating income from continuing operations fell 26% to $69.0 million, while adjusted EBITDA from continuing operations slipped 4% to $117 million in the period. Matt Espe, CEO said, "Although the macroeconomic environment weakened slightly versus our previous outlook, primarily in U.S. residential and Europe, softer market conditions only partially contributed to the volume declines, as we saw industry wide capacity utilization challenges resulting in increased competitive price pressure in our European flooring business, for which we continue to evaluate strategic alternatives. “ For the full year, Armstrong World projects earnings of $2 to $2.15 per share on revenue of $2.68 billion to $2.72 billion. Armstrong World shares closed at $48.80 on Friday.