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Armstrong World Industries Sinks On Q3 Warning

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Armstrong World Industries, Inc. (NYSE: AWI) cut its third-quarter outlook citing price pressures in Europe and a market shift in North America.

In Monday's extended session, Armstrong traded recently at $46.49 per share, down 4.6 percent.

The maker of flooring and ceiling materials said its European flooring business was also hurt by "capacity utilization challenges," while markets in the United States shifted more rapidly than expected to luxury vinyl tile from "traditional" products.

The company's wood business was hurt by continued price pressure and competition, although its global ceilings and North American commercial flooring businesses "remain on plan," the company said.

With full results slated October 27, "unfortunately, our outlook for 2014 does not align with our prior expectations, which is disappointing for all of us," Chief Executive Matthew J. Espe said in a statement.

Armstrong cut its full year forecast, putting sales at $2.68 million to $2.72 million, down from an earlier outlook of $2.7 million to $2.8 million. Wall Street expected $2.75 million.

The company also reduced its 2014 outlook for earnings before interest, taxes, depreciation and amortization to between $355 million and $375 million, from a range of $370 and $400 million.

Sales for the period ended September 30 will fall below the company's previous estimate of $740 million to $780 million, but EBITDA for the period will be in line with its earlier forecast of $110 million to $130 million.

Analysts expect third-quarter sales of $743.5 million.

 

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