LANCASTER, PA â
Flooring and cabinet manufacturer Armstrong World Industries Inc. announced a slight increase in net sales for the second quarter of 2011.
According to Armstrong World, consolidated net sales increased approximately $24 million or 3% compared to the prior year period. Excluding a $24 million favorable foreign exchange impact for the quarter, sales were relatively flat compared to the prior year period. On a consolidated level, price and mix were able to offset broad volume declines in all businesses and geographies, except in the wood business and in Asia where volume grew.
Matt Espe, president and CEO, said, "Volumes were down in most of our business reflecting the cautionary economic environment in which we continue to operate. We were, however, able to achieve increased profitability through the continued execution of our cost savings plans, pricing ability, mix gains from new products and leverage of lean investments."
For the wood flooring segment, net sales increased in the second quarter as price, volume and mix were all positive contributors. Operating income increased as a result of reduced manufacturing and selling/general/administrative (SG&A) costs and improved sales.
In the cabinets business segment, Armstrong reported a net sales decrease primarily due to less favorable product mix. Operating income improved primarily due to reduced SG&A expenses, which were partially offset by unfavorable product mix.
Posted by Karen Koenig
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