Armstrong Flooring Pummeled by Rising Lumber Costs

By Bill Esler | Posted: 10/28/2013 1:44PM

 

Armstrong Wood FlooringArmstrong Floor Products LANCASTER, PA - Armstrong World Industries, Inc. (NYSE: AWI) third quarter earnings rose 5% to $729.7 million, the increase driven primarily by residential wood flooring sales. 

But the bottom line fell out on rising lumber costs, says CEO Matt Espe, with net income plunging 24.5% to $55.9 million.

Overall sales fell $7 million against year ago levels, due to the sale of the Patriot wood flooring distribution business in the third quarter of 2012. Armstrong sold that flooring sales operation at the end of last year to Belknap White Group.

Rising lumber costs increased expenses, as did investments to support emerging market and architectural specialties growth initiatives and higher labor costs associated with added crews at several solid wood plants to respond to increased demand. T

 "Commercial construction activity was mostly flat in the third quarter and sales came in slightly below our guidance range as we experienced weaker than expected global demand for our products," said Espe.

In October 2012, Armstrong sold its cabinetry business to American Industrial Partners (AIP).

 

About the Author

Bill Esler, Woodworking Network, WMS

Bill Esler

Bill Esler, Editorial Director, Woodworking Network Bill is responsible for overall content at WoodworkingNetwork.com Woodworking Network magazine, and related newsletters. Bill also manages event programs for Woodworking Network Live conferences at the Woodworking Machinery & Supplies Expo in Toronto and Cabinets & Closets Expo. He developing audience engagement programs using custom digital printing, live lead-generating events, custom websites, and custom digital and print content. Read Bill Esler's woodworking blogs. He can be reached at besler@woodworkingnetwork.com or follow him on Google+.

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