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AFI: revenues and earnings decline in first quarter

10.05.2019 − 

The US flooring manufacturer Armstrong Flooring (AFI), which divested its "Wood Flooring" business unit at the end of last year and has since only continued its elastic flooring division, suffered a 13.8 % decline in sales to US$ 141.7m in the first quarter. The decline is the result of sales losses in almost all remaining product segments. Business with Luxury Vinyl Tiles (LVT) has also weakened, after AFI has mostly been able to record significant growth in this segment so far.

AFI's earnings situation also deteriorated in the first quarter. The operating loss increased further to US$ -15.6m. The same applies to the pre-tax result from continuing operations of US$ -16.9m and the net result of US$ -16.7m. The Group's Adjusted EBITDA, which was adjusted for special items, only reached break-even, compared to US$10.6m in the prior-year quarter.

In the quarterly report published in early May, AFI also announced that the Board of Directors had increased its share buyback program by US$50m. Part of the proceeds will be used for the sold wood flooring business. In March 2017, a total of US$50m was last approved for the share buyback, of which approximately US$41m has been used to date.

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