Armstrong lowers 2014 guidance on Q2 earnings

Armstrong World Industries fell short of its stated goals in the second quarter, leading in turn to a lowered full-year guidance for 2014.

"Despite soft sales, we delivered second-quarter adjusted EBITDA in the middle of our guidance range," said CEO Matt Espe. "The softer-demand environment we experienced in the quarter and first half of 2014 has tempered our outlook for the back half of the year."

Net sales did increase slightly year-over-year -- by 0.5% -- to $710.0 million during the three months ended June 30. This was driven by price and mix offsetting lower volumes.

However, both operating income and net income declined. Net income was down 31.4% to $21.0 million for the quarter, and operating income fell 14.5% to $57.8 million.

Full-year guidance pinpoints sales in the $2.7 to $2.8 billion range, and adjusted EBITDA was between $370 and $400 million.

The company owed approximately $8 million in severance and other charges associated with the closing of the resilient flooring plant in Thomastown, Australia, and the engineered wood flooring plant in Kunshan, China.

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