Producer of flooring products and ceiling systems,
Armstrong World Industries, Inc.
) has declared a secondary public offering of 3,900,000 shares
held by Asbestos Personal Injury Settlement Trust and Armor TPG
According to the secondary offering, the Trust and TPG will sell
1,845,023 shares and 2,054,977 shares respectively.
) will act as the sole underwriter for the offering. Upon
completion of this offering, TPG will no longer hold any shares
of Armstrong World.
In Aug 2009, TPG and the Trust entered into agreements following
which TPG purchased 7,000,000 shares of Armstrong World from the
Trust and acquired an economic interest in an additional
1,039,777 shares subsequent to a forward sales contract.
During the fourth quarter of 2013, the Trust and TPG together
sold an additional 6,000,000 shares. At the beginning of 2013,
the Trust and TPG owned over 50% of Armstrong World shares, which
came down to 25% at the end of the year.
For full-year 2013, Armstrong World reported adjusted earnings
per share of $2.04, down 19% from $2.53 in 2012. The results fell
short of the Zacks Consensus Estimate of $2.29. A rise in
manufacturing and input costs as well as SG&A expenses
However, Armstrong World remains optimistic about residential
repair and remodel activity in 2014 with new home starts expected
to be about 1.1 million. The company guided its full-year
adjusted earnings per share (EPS) in the range of $2.55-$2.80.
The company will benefit from investments in emerging markets and
Architectural Specialties. Further, positive price and mix, along
with growth in core commercial markets will boost the company's
prospects. However, challenging market conditions in Europe and
Australia remain concerns.
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
institutional buildings. The company also designs, manufactures
and sells kitchen and bathroom cabinets in the U.S.
Armstrong World currently carries a short-term Zacks Rank #3
(Hold). Some better-ranked stocks in the sector include
CaesarStone Sdot-Yam Ltd.
Quanex Building Products Corp.
). While CaesarStone sports a Zacks Rank #1 (Strong Buy), Quanex
Building Products has a Zacks Rank #2 (Buy).
ARMSTRONG WORLD (AWI): Free Stock Analysis
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MORGAN STANLEY (MS): Free Stock Analysis
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