LANCASTER, PA – Armstrong World Industries, Inc, designer and manufacturer of wood flooring and building products, reported its third-quarter 2014 results with net sales for wood flooring reaching $137.0 million, a slight decrease from $148.0 million during the same period in 2013. The company says the improvements in price and mix were both offset by a decline in volume.
Declines in operating income and net income during the third quarter were also attributed to many factors including the closure of a resilient flooring plant in Thomastown, Australia as well as the closure of an engineered wood flooring plant in Kunshan, China.
"While earnings met our expectations, sales came in below our previous guidance range, driven by a number of factors that negatively impacted volumes in the third quarter," said Matt Espe, CEO of Armstrong World Industries, Inc.
Espe also attributed an increase in competitive price pressure to the volume declines.
"Softer market conditions only partially contributed to the volume declines, as we saw industry wide capacity utilization challenges resulting in increased competitive price pressure in our European flooring business, for which we continue to evaluate strategic alternatives," said Espe. "We also experienced a faster than anticipated category shift by consumers away from traditional vinyl products that negatively impacted our North American residential resilient business, as well as intensifying competitive price pressure in our wood business."
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