Printer Friendly

ARMSTRONG WORLD INDUSTRIES REPORTS RESULTS

 LANCASTER, PA., Jan. 25 /PRNewswire/ -- Armstrong World Industries, Inc. (NYSE: ACK), today reported fourth-quarter 1992 sales that exceeded the comparable 1991 mark and full-year sales that set a new company record. However, results showed losses for both periods.
 The announcement confirmed alerts from Armstrong in October 1992 and on January 14, when the company identified restructuring costs and the adoption, retroactive to January 1, 1992, of new Financial Accounting Standard Board's (FASB's) statements for financial reporting as principal reasons for the losses that had been projected.
 Armstrong's fourth-quarter sales were $600.1 million, an increase of 3 percent from the 1991 level. The net loss for the quarter was $16.0 million (52 cents per share), compared with the fourth quarter of last year, when Armstrong reported a loss of $12.0 million (45 cents per share).
 Without the restructuring costs ($24.3 million after tax) and adoption of the FASB standards ($3.2 million after tax), Armstrong would have shown 1992 fourth-quarter earnings from continuing businesses of $11.5 million (18 cents per share). Fourth-quarter 1991 losses from continuing businesses were $2.6 million (20 cents per share). Excluding restructuring charges ($4.8 million after tax) for that quarter of 1991, the earnings from continuing businesses would have been $2.2 million (a 7-cent-per-share loss because these earnings would not have covered the preferred dividend requirements).
 The fourth-quarter 1992 restructuring costs relate to costs associated with the closing of a ceiling materials plant in Ghlin, Belgium, and with the continuing elimination of salaried employee positions worldwide. The financial accounting standards adopted by Armstrong are Statement of Financial Accounting Standards (SFAS) No. 106, "Employers' Accounting for Postretirement Benefits other than Pensions," SFAS No. 109, "Accounting for Income Taxes," and SFAS No. 112, "Employers' Accounting for Postemployment Benefits."
 Fourth-quarter 1992 earnings were favorably affected by a foreign exchange gain of $8.4 million ($5.5 million after tax, or 15 cents per share) compared with a loss of $1.2 million ($.8 million after tax, or 2 cents per share) in the fourth quarter of 1991.
 For the full year 1992, the company reported these results:
 -- Net sales reached $2.55 billion, a new Armstrong record and
 4.5 percent higher than the $2.44 billion of 1991.
 -- Losses from continuing businesses were $61.6 million, compared
 with earnings from continuing businesses of $60.6 million the
 previous year. Both years' figures include restructuring costs,
 while 1992 figures also include incremental costs related to the
 adoption of the new accounting standards.
 -- The loss from continuing businesses per share of common stock
 was $2.03 on both a primary and fully diluted basis, compared
 with 1991 earnings per share of $1.11.
 -- Total net loss was $234.2 million, as compared with 1991's net
 earnings of $48.2 million.
 -- Net losses per share of common stock were $6.67 on both a primary
 and fully diluted basis, compared with 1991 net earnings per
 share of 77 cents.
 -- Restructuring costs for the full year 1992 amounted to
 $165.5 million ($123.8 million after tax, or $3.33 per share).
 Restructuring costs for 1991 amounted to $12.8 million
 ($8.4 million after tax, or 23 cents per share).
 -- The 1992 loss reflected charges of $280.9 million ($172.6 million
 after tax, or $4.64 per share) related to the company's adoption
 of SFAS 106 and SFAS 112. In addition, the 1992 expense
 accruals required by SFAS 106 and SFAS 112 included in earnings
 from continuing businesses were $11.5 million ($7.6 million
 after tax, or 20 cents per share). The adoption of SFAS 109
 resulted in tax benefits totaling $5.5 million for 1992 being
 credited directly to retained earnings rather than the earnings
 statement. Quarterly earnings for 1992 have been restated to
 include the effect of adopting the new accounting standards.
 -- Excluding charges resulting from the restructuring costs and
 accounting changes, 1992 net earnings would have been
 $75.3 million or $1.50 per share on a primary basis and $1.45
 per share on a fully diluted basis.
 For the full year 1992, foreign exchange gains totaled $1.4 million ($.9 million after tax, or 3 cents per share), compared with a full-year 1991 gain of $5.9 million ($3.9 million after tax, or 10 cents per share). Operating results were affected by competitive pricing pressures and higher fixed costs concurrent with slow sales growth. Lower short-term interest rates favorably affected interest expense.
 Three of Armstrong's four worldwide industry segments -- floor coverings (which includes ceramic tile), furniture and industry products -- showed fourth-quarter increases in sales when compared with the comparable 1991 levels. Sales in the fourth segment, building products, declined. Of the four, only floor coverings increased in operating profit in the year-to-year comparisons.
 Commenting on the outlook for the company, William W. Adams, chairman and president, said, "Behind the complexity of the reported numbers is a picture of several businesses doing quite well, with the earnings of several others lagging well behind. The net performance of the business portfolio was not acceptable last quarter or last year.
 "We are making substantial progress in reshaping our costs bases. While that certainly did not help the numbers in the fourth quarter, it will have an impact this year.
 "We are encouraged by orders this month, which are well ahead of year-ago levels in most businesses. While we cannot project this pattern through the current quarter and the year, if it does hold up, it will be very good news indeed."
 ARMSTRONG WORLD INDUSTRIES, INC., AND SUBSIDIARIES
 FINANCIAL HIGHLIGHTS
 (estimated and unaudited)
 (millions except for per-share data and percentages)
 Three months Twelve months
 ended December 31 ended December 31
 1992 1991(1) 1992 1991(1)
 NET SALES . . . . . . . . $ 600.1 $ 583.0 $2,549.8 $2,439.3
 Cost of goods sold . . . . . 460.4 441.8 1,891.3 1,801.1
 Selling and
 administrative expense . 123.0 119.3 511.6 468.3
 Interest expense . . . . . . 11.0 10.8 41.6 45.8
 Restructuring costs . . . . . 30.9 7.2 165.5 12.8
 Other (income) expense . . . (7.9) 8.3 2.8 11.0
 Earnings (losses) from
 continuing businesses
 before income taxes . . . (17.3) (4.4) (63.0) 100.3
 Income taxes . . . . . . . (1.3) (1.8) (1.4) 39.7
 EARNINGS (LOSSES) FROM
 CONTINUING BUSINESSES . . $ (16.0) $ (2.6) $ (61.6) $ 60.6
 Losses from discontinued
 businesses, net of
 income taxes . . . . . . . . --- (9.4) --- (12.4)
 Cumulative effect of change in
 accounting for:
 Postretirement benefits (net of
 income tax benefit of $85.0) --- --- (135.4) ---
 Postemployment benefits (net of
 income tax benefit of $23.3) --- --- (37.2) ---
 NET EARNINGS (LOSSES) . . .$ (16.0) $ (12.0) $ (234.2) $ 48.2
 Per share of common stock:
 Primary and fully diluted
 Earnings (losses) from
 continuing businesses . . $ (0.52) $ (0.20) $ (2.03) $ 1.11
 Losses from discontinued
 businesses . . . . . . . . . --- (0.25) --- (0.34)
 Cumulative effect of change in
 accounting for:
 Postretirement benefits . . . --- --- (3.64) ---
 Postemployment benefits . . . --- --- (1.00) ---
 Net earnings (losses) . . $ (0.52) $ (0.45) $ (6.67) $ 0.77
 Average number of common shares
 outstanding:
 Primary . . . . . . . . . . 37.2 37.2 37.2 37.2
 Fully diluted . . . . . . . 43.2 43.1 43.1 43.1
 Return on average common
 shareholders' equity (pct.) -14.3 -7.6 -35.7 3.3
 (1) Operating statement categories have been restated to conform to current expense classifications.
 INDUSTRY SEGMENTS
 (estimated and unaudited)
 Armstrong World Industries, Inc., and subsidiaries
 (millions)
 Three months Twelve months
 ended December 31 ended December 31
 1992 1991 1992 1991
 Net trade sales:
 Floor coverings . . . . $ 268.1 $ 248.3 $1,134.9 $1,058.0
 Building products . . . . 146.4 156.9 656.7 676.3
 Furniture . . . . . . . . 110.1 106.0 438.4 417.9
 Industry products . . . 75.5 71.8 319.8 287.1
 Total net sales . . . . $ 600.1 $ 583.0 $2,549.8 $2,439.3
 Operating profit (loss):(1)
 Floor coverings . . . . . $ 13.4 $ 6.1 $ 30.2 $ 84.6
 Building products . . . . (14.9) 4.5 (7.3) 46.7
 Furniture . . . . . . . . 1.8 5.1 10.3 18.2
 Industry products . . . . 6.7 9.3 35.4 43.1
 Total operating profit (loss) $7.0 $25.0 $68.6 $192.6


(1) Restructuring costs included
 in operating profit (loss):
 Floor coverings . . . . . . $ (7.6) $ (2.8) $ (80.8) $ (3.0)
 Building products . . . . . (11.9) (1.0) (35.0) (4.3)
 Furniture . . . . . . . . . 0.5 --- (4.8) (0.3)
 Industry products . . . . . (1.2) (2.1) (12.5) (2.2)
 Total restructuring costs
 included in operating
 profit (loss) . . . . . . $ (20.2) $ (5.9) $ (133.1) $ (9.8)
 -0- 1/25/93
 /CONTACT: Armstrong Public Relations, 717-396-3313/
 (ACK)


CO: Armstrong World Industries, Inc. ST: Pennsylvania IN: SU: ERN

MP -- PH010 -- 8386 01/25/93 10:42 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jan 25, 1993
Words:1455
Previous Article:ARMSTRONG WORLD INDUSTRIES DECLARES DIVIDEND
Next Article:PHILADELPHIA ELECTRIC ANNOUNCES FINANCIAL RESULTS FOR 1992 AND DECLARES 1993 FIRST QUARTER DIVIDEND
Topics:


Related Articles
ARMSTRONG WORLD INDUSTRIES REPORTS RESULTS
ARMSTRONG WORLD INDUSTRIES REPORTS RESULTS
ARMSTRONG WORLD INDUSTRIES REPORTS RESULTS
ARMSTRONG WORLD INDUSTRIES REPORTS RESULTS
ARMSTRONG WORLD INDUSTRIES ISSUES ANNOUNCEMENT
ARMSTRONG WORLD INDUSTRIES REPORTS RESULTS
ARMSTRONG WORLD INDUSTRIES REPORTS RESULTS
Armstrong Announces 36 Percent First-Quarter EPS Improvement On Record First-Quarter Sales
Armstrong's Second Quarter to be Hurt by Earnings; Difficulties at Dal-Tile
Armstrong Anticipates Second-Quarter Results Will Not Meet Analysts' Estimates

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters