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Armstrong World Industries Inc. Reports Operating Results (10-Q)

October 29, 2012 | About:
10qk

10qk

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Armstrong World Industries Inc. (AWI) filed Quarterly Report for the period ended 2012-09-30.

Armstrong World Industries, Inc. has a market cap of $2.87 billion; its shares were traded at around $48.77 with a P/E ratio of 22.27 and P/S ratio of 1.

Highlight of Business Operations:

Pricing Initiatives. We periodically modify prices in response to changes in costs for raw materials and energy, and to market conditions and the competitive environment. In certain cases, realized price increases are less than the announced price increases because of competitive reactions and changing market conditions. We estimate that prior pricing actions increased our third quarter total consolidated net sales by approximately $6 million and in the first nine months of 2012 by approximately $23 million, when compared to the same periods of 2011.

Cost of goods sold in the third quarter of 2012 was 73.1% of net sales, compared to 74.3% for the same period in 2011. The percentage decrease in the third quarter of 2012 was primarily the result of manufacturing cost reductions when compared to the prior year. Cost of goods sold in the first nine months of 2012 was 75.2% of net sales, compared to 75.1% for the same period in 2011. The comparison for the first nine months was impacted by approximately $20 million of costs associated with the closure of our Mobile, AL Building Products facility in 2012, approximately $12 million of costs associated with the closure of our Beaver Falls, PA Building Products facility in 2011 and approximately $8 million of costs associated with European Flooring cost reduction actions taken in 2011.

SG&A expenses in the third quarter of 2012 were $94.0 million, or 13.5% of net sales, and in the first nine months of 2012 were $312.6 million, or 15.6% of net sales, compared to $112.7 million, or 15.4% of net sales, and $342.7 million, or 16.3% of net sales, for the corresponding periods in 2011. The decreases were due to reductions in core SG&A expenses.

Equity earnings from our WAVE joint venture were $15.5 million for the third quarter of 2012 compared to $15.4 million in the third quarter of 2011, and $44.0 million for the first nine months of 2012 compared to $44.4 million for the first nine months of 2011. See Note 7 to the Condensed Consolidated Financial Statements for further information.

Net sales in the Pacific Rim were flat in the third quarter of 2012 when compared to the prior year as unfavorable foreign exchange impact of approximately $2 million offset higher volumes. Net sales in the Pacific Rim declined in the first nine months of 2012 when compared to the prior year as improvements in mix were unable to offset unfavorable foreign exchange impact of approximately $4 million and lower volumes.

Read the The complete Report

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