- THE MAGAZINE
Armstrong World Industries, the company's main operating unit, continues to operate under Chapter 11 of the U.S. Bankruptcy Code. Earlier this week the unit said it would create a billion-dollar trust to resolve thousands of asbestos- related lawsuits as part of a plan to emerge from bankruptcy.
The Lancaster, Pa., manufacturer of floor coverings, ceiling tiles and cabinets Friday reported net income of $29.4 million, or 72 cents a share, down from $41.2 million, or $1.01 a share a year earlier.
Armstrong said the weak European economy and higher costs for medical benefits and pensions pressured results in the latest period.
Sales increased 5.1% to $846 million from $804.9 million.
The company posted operating income of $52.4 million, including a restructuring reversal of $600,000 in its textiles and sports flooring business.
Operating earnings a year earlier came to $32.9 million, which included charges for potential asbestos-related claims and $5.7 million of goodwill amortization. Under accounting rules adopted earlier this year, goodwill isn't routinely written down as it was in the past, but stays on a balance sheet untouched unless it is deemed impaired.
Armstrong said corporate expense rose to $12.8 million from $2.5 million a year ago, primarily because of a reduced pension credit of $4.6 million, as well as higher advertising costs and management changes.