Consistent with its strategy of focusing on its core business,
Armstrong World Industries, Inc.
) has recently sold its flooring sales and distribution business,
Patriot Flooring Supply, Inc., to Belknap White Group, a
flooring distributor operating in New England and upstate New
Patriot Flooring became a part of Armstrong in 1998 after the
company acquired Triangle Pacific, a leading manufacturer of
hardwood flooring and kitchen/bathroom cabinets, for $1.15 billion.
Patriot Flooring currently employs 65 people in Wilmington,
Massachusetts and Pompton Plains, New Jersey. It mainly serves the
New England, metropolitan New York and Northern New Jersey
Lancaster, Pennsylvania-based Armstrong World is a leading
global producer of flooring products and ceiling systems for use in
the construction and renovation of residential, commercial and
The company also designs, manufactures and sells kitchen and
bathroom cabinets in the U.S. On the contrary, Patriot is engaged
in distribution of hardwood and laminate flooring and thus was not
in sync with Armstrong's business of making and marketing floors.
Following the divestment, Armstrong can focus and continue to grow
its core business in North America and globally.
In the second quarter of fiscal 2012, Armstrong's net sales
declined 5% to $710 million as improvements in price and mix were
unable to offset broad volume declines in all businesses and
geographies. Adjusted EPS in the quarter dipped 3% to 71 cents from
69 cents in the year-ago quarter.
The company has thus lowered its fiscal 2012 sales guidance to a
range of $2.75 to $2.85 billion range and expects adjusted EBITDA
to be in the $400 to $430 million range. 2012 adjusted EPS is
expected to be $2.40 to $2.70 per share. The Zacks Consensus
Estimate for EPS for the year is pegged at $2.50 and for revenue at
$2.79 billion, within the guidance ranges.
For the third quarter of 2012, sales are expected to be between
$740 and $780 million and adjusted EBITDA to be in the range of
$120 to $140 million. The Zacks Consensus Estimate for EPS for the
quarter currently stands at 91 cents and for revenue at $753
Armstrong's volumes are expected to be affected as global
markets continue to struggle, particularly Europe. The company,
however, continued to effectively manage its cost structure and
adapt to the continued challenging market conditions.
Armstrong World Industries competes with privately held
Congoleum Corporation, Pergo AB and Shaw Industries, Inc.
Currently, the shares retain a short-term Zacks #4 Rank (Sell).
ARMSTRONG WORLD (AWI): Free Stock Analysis
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