Armstrong World Industries (AWI) has announced a drop of about 15 % in sales from its Wood Flooring division in the third quarter. Higher selling prices and a better product mix only partly offset this slump. Turnover had thus slipped by 7.4 % to US$137m. Operating profits were down 23.1% at US$2m. Extraordinary charges connected to the closure of a multi-ply parquet mill in Kunshan in China’s Jiangsu Province on 30 September made a US$4m dent into earnings. Adjusted for these factors, operating income grew to about US$6m; adjusted EBITDA nearly doubled to US$9m. Announced in late July, the divestment in Kunshan incurred extraordinary charges of US$3m in the second quarter. The division had posted an operating loss of US$2.6m for the second quarter due to this and other unusual factors, such as value adjustments of about US$4m for mothballed production machinery at five wooden flooring and parquet facilities. Revenues had improved slightly to US$139.4m between April and June.
Armstrong Wood Flooring posts fall in volumes
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