Armstrong World Industries reports Q3 sales, income down

Armstrong World Industries reported third-quarter net sales of $658.5 million, down 3% from $678.9 million in the third quarter of 2014. Net income for the third quarter ended Sept. 30 totaled $30.3 million, down 35.1% $46.7 million.

"On a comparable foreign exchange basis sales increased 1% in the third quarter with improvement across virtually all of our businesses," said Matt Espe, CEO.  "I'm especially pleased to report that our Worldwide Building Products business delivered yet another record adjusted EBITDA quarter despite challenging conditions in emerging markets. Globally, ceiling sales were up 2% and EBITDA up 6%, as our Americas business continues to benefit from price over inflation, productivity improvements and mix gains."

For the nine months ended Sept. 30, net sales totaled $1.84 billion, down 4.4% from $1.93 billion in the nine-month period of 2014. Operating income for the period was $178.6 million down 12.1% from $203.2 million.

"We're updating our full year sales guidance to reflect third quarter results and the pressure we're experiencing due to continued volatility in foreign exchange rates," said CFO Dave Schulz. "Despite pressure from foreign exchange headwinds, we continue to expect to benefit from lower input costs, primarily in our flooring businesses, and are increasing our full year adjusted EBITDA and adjusted EPS guidance at the midpoint."

The company now expects full year sales to be in the $2.4 billion to $2.45 billion range.