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AFI: high loss due to sale of wooden flooring division

20.03.2019 − 

As a consequence of the sale of the wooden flooring division, which was concluded at the end of 2018, Armstrong Flooring (AFI) was confronted with significant declines in revenue. As this business unit was already included in the discontinued activities in the fourth quarter, net loss increased to -US$171.0m. Of this figure, -US$156.1m is due to the wooden flooring division, and another -US$14.9m to continued activities in the area of elastic flooring. Pre-tax profit ensuing from continued activities amounted to -US$19.2m. Quarterly operating profit, at -US$16.6m, was also in the negative zone. AFI additionally records an EBITDA adjusted to account for the sale and further special effects which, at US$1.8m also developed along negative lines but still remained in the black. The margin calculated on this basis decreased to 1.2%. The main reason for this decline was the lower sale volumes in the fourth quarter. Net turnover of the remaining business division decreased by 3.5% to US$153.8m.

Over the entire period of 2018 AFI generated turnover of US$728.2m in the continued business division, corresponding to a 3.4% increase. Good sales development regarding luxury vinyl tiles (LVT) and commercial floorings contributed to this rise. Volumes of traditional elastic floorings for living areas declined, in contrast, although it was possible to offset the ensuing declines with higher prices and changes to the product mix.

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