Armstrong World Q2 Earnings Decline, Slashes Annual Outlook - Quick Facts

(RTTNews) - Armstrong World Industries, Inc. (AWI), a maker of flooring and ceiling materials, Monday reported a drop in second-quarter net earnings, as rising lumber costs and lower volumes that hit margins eclipsed a modest growth in sales. In addition, the company lowered its full-year outlook.

For the three months to June, net earnings declined to $18.9 million or $0.34 per share, from $29.9 million or $0.50 per share a year earlier.

Excluding certain items, earnings totaled $33 million or $0.60 per share, compared with $36 million or $0.60 per share a year earlier. Average number of common shares outstanding were 55.3 million, down from 59.9 million a year ago.

On average, sixteen analysts polled by Thomson-Reuters estimated the company's earnings to be $0.66 for the quarter. Analysts' estimates typically exclude one-time items.

Adjusted EBITDA stood at $99 million, compared with $97 million in the corresponding period last year.

Quarterly net sales increased to $710 million, from $706.6 million last year, but were shy of the $724.81 million Wall Street.

For the full year, the company lowered its outlook to adjusted earnings of $2.15 to $2.40 per share on revenues of $2.7 billion to $2.8 billion.

For the third quarter, Armstrong World expects sales of $740 million to $780 million and adjusted EBITDA on $110 million to $130 million.

Analysts expect annual earnings of $2.27 per share on revenues of $3.72 billion, and third-quarter earnings of $0.48 per share.