UPDATE: Armstrong World Industries Posts Upbeat Q4 Earnings, Revenue Misses Views

reported stronger-than-expected fourth-quarter earnings, but the company's revenue missed analysts' estimates. The company also announced its plans to separate its ceilings and flooring and businesses into two independent public companies. The Lancaster, Pennsylvania-based company posted quarterly earnings from continuing operations of $10.6 million, or $0.19 per share, compared to $23.4 million, or $0.42 per share, in the year-ago period of. Its adjusted earnings came in at $0.38 per share Its revenue dropped to $587.3 million from $614.8 million. However, analysts were expecting earnings of $0.26 per share on revenue of $624 million. Sales for building products segment declined 2.8% in the quarter, while resilient flooring segment sales rose 0.7%. Sales for wood flooring segment declined 14.7% in the same period. Its operating income from continuing operations declined 17% to $35.9 million in the quarter, while adjusted EBITDA from continuing operations gained 8% to $78 million. "We anticipate improving market conditions in the U.S. will support modest sales growth despite some anticipated pressure from foreign exchange in our international operations," said Dave Schulz, CFO. "While earnings are expected to be lower than 2014, the investments we are making will position our businesses to succeed as two independent industry-leading public companies and benefit 2016 and beyond." For 2015, Armstrong World projects adjusted earnings of $2.05 to $2.45 per share on revenue of $2.53 billion to $2.63 billion. Analysts had expected earnings of $2.34 per share on revenue of $2.72 billion. Armstrong World shares gained 1.69% to close at $54.80 on Friday.