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ARMSTRONG WORLD INDUSTRIES REPORTS RESULTS

 ARMSTRONG WORLD INDUSTRIES REPORTS RESULTS
 LANCASTER, Pa., April 27 /PRNewswire/ -- With first-quarter results


described as "encouraging" by William W. Adams, chairman and president, Armstrong World Industries, Inc. (NYSE: ACK), reported today that sales were the highest of any first quarter in the company's history, while earnings from continuing businesses and net earnings topped those of the first quarter of last year.
 The company said that vigorous sales of resilient flooring in the United States were the principal factor in the year-to-year growth.
 Sales for the first quarter of this year were $638.4 million, representing an increase of 7 percent over sales of $596.1 million in the first quarter of 1991.
 Earnings from continuing businesses, which do not take into account gains or losses from discontinued businesses, amounted to $18.2 million in the first quarter of 1992. This figure is 15 percent higher than the $15.8 million recorded in the same quarter of 1991.
 Net earnings grew to $18.2 million this year -- 24 percent above the $14.8 million of first-quarter 1991.
 Earnings from continuing businesses and net earnings per common share in the first quarter of 1992 amounted to 36 cents on a primary basis and 35 cents on a fully diluted basis. In the first quarter last year, the comparable figures were 30 cents per share for earnings from continuing businesses and 27 cents per share for net earnings on both the primary and fully diluted bases.
 Return on average common shareholders' equity was 6.2 percent in this year's first quarter. It was 4.5 percent in the comparable period last year.
 Significant items were included in the first-quarter results of both years. Included in the first-quarter 1992 results were restructuring charges for severance pay and retirement incentives of $3.0 million before tax ($1.8 million after tax). In 1991's first quarter, gains related to hedges on foreign currency transactions totaled $4.7 million before tax ($2.8 million after tax). Partially offsetting this gain was additional interest expense of $2.4 million before tax ($1.5 million after tax) related to the settlement of certain of the company's prior years' tax returns.
 The higher effective income tax rate in the first quarter 1992 (37.0 percent) compared with the first quarter 1991 (34.6 percent) results primarily from an increase in the effective tax rate of foreign subsidiaries.
 Armstrong reports sales and operating profits for each of the four industry segments that constitute the company's business -- floor coverings (which includes resilient flooring and ceramic tile), building products, furniture and industry products. Of these segments, sales increased in all four when comparing 1992 to 1991 results. In operating profit, the year-to-year increase was most pronounced in floor coverings. An increase also was recorded by the furniture segment, while the industry products segment remained constant in spite of the previously mentioned restructuring costs. In the building products segment, operating profit was down, with results in Europe reflecting a decline that more than offset significant improvement in the United States.
 Commenting on the first-quarter figures, Adams said, "It's good to be able to report encouraging results for a change. We are not back to where we want to be, but we are on our way. Business is definitely better in our consumer products, and our gasket and insulation products sales are strong. Now we have to continue to turn these sales increases into significant earnings gains."
 ARMSTRONG WORLD INDUSTRIES, INC., AND SUBSIDIARIES
 FINANCIAL HIGHLIGHTS
 (estimated and unaudited)
 (millions except for per-share data and percentages)
 Three months
 ended March 31
 1992 1991(A)
 NET SALES $ 638.4 $ 596.1
 Cost of goods sold 467.2 445.0
 Selling and administrative expense 127.9 117.7
 Interest expense 10.1 12.4
 Other (income) expense 4.2 (3.2)
 Earnings from continuing
 businesses before income taxes 29.0 24.2
 Income taxes 10.8 8.4
 EARNINGS FROM CONTINUING BUSINESSES $ 18.2 $ 15.8
 Losses from discontinued businesses,
 net of income taxes -- (1.0)
 NET EARNINGS $ 18.2 $ 14.8
 Per share of common stock:
 Primary:
 Earnings from continuing businesses. $ .36 $ .30
 Losses from discontinued businesses. -- (.03)
 Net earnings $ .36 $ .27
 Fully diluted:
 Earnings from continuing businesses. $ .35 $ .30
 Losses from discontinued businesses. -- (.03)
 Net earnings $ .35 $ .27
 Average number of common shares outstanding:
 Primary 37.2 37.2
 Fully diluted 43.1 43.0
 Return on average common
 shareholders' equity (pct.) 6.2 4.5
 (A) Operating statement categories have been restated to exclude the effects of discontinued businesses and to conform to current expense classifications.
 INDUSTRY SEGMENTS
 (estimated and unaudited)
 (millions)
 Three months
 ended March 31
 1992 1991(B)
 Net trade sales:
 Floor coverings $ 264.6 $ 237.8
 Building products 178.7 173.4
 Furniture 109.5 105.5
 Industry products 85.6 79.4
 Total net sales $ 638.4 $ 596.1
 Operating profit:
 Floor coverings $ 22.0 $ 10.7
 Building products 10.9 13.6
 Furniture 5.2 3.6
 Industry products 14.3 14.3
 Total operating profit $ 52.4 $ 42.2
 (B) Industry segment net trade sales and operating profit have been restated to exclude the effects of discontinued businesses.
 -0- 4/27/92 R
 /CONTACT: Armstrong Public Relations, 717-396-3313/
 (ACK) CO: Armstrong World Industries, Inc. ST: Pennsylvania IN: SU: ERN


KD-LJ -- PH024 -- 3150 04/27/92 12:21 EDT
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