Armstrong World Profit Down 28.5% on Higher Costs
Armstrong World Industries Inc. on Monday said its second-quarter earnings fell 28.5% on higher manufacturing and input expenses, mostly owing to higher lumber costs that more than offset improved sales.
The maker of flooring and other building products also was hit by higher labor costs, as it added crews at several solid-wood plants to respond to increased demand.
For the year, the company lowered its per-share earnings estimate as the result of the timing of a recovery in its wood business and weaker European commercial construction activity. Armstrong now expects earnings of $2.00 to $2.30 a share, compared with its previous estimate for per-share profit of $2.15 to $2.45. Read the full story at www.marketwatch.com.