Armstrong World, Swift Transportation down in Q2
Despite a slight increase in net sales, it was a disappointing second quarter for Manor Township-based Armstrong World Industries Inc.
A global leader in floor and ceiling manufacturing, Armstrong today reported net income of $21 million, or 38 cents per diluted share, for the second quarter. That was down from $30.6 million, or 51 cents per diluted share, in the same quarter of 2013.
“The softer demand environment we experienced in the quarter and first half of 2014 has tempered our outlook for the back half of the year,” said CEO Matt Espe.
The quarter was affected by rising manufacturing and input costs, which were driven by higher lumber costs and the margin impact of lower volumes. Armstrong also closed a resilient flooring plant in Australia and an engineered wood flooring plant in China.
The latter resulted in about $8 million for severance and other charges, according to the company.
The Australian plant, in Thomastown, will cease production on Thursday, while the plant in Kunshan, China, will close Sept. 30. Production activity will shift to existing Armstrong facilities in the United States.
Swift Transportation Co
On Thursday, Arizona-based Swift Transportation Co., the nation’s largest truckload provider, reported its second-quarter figures.
Swift, which has a transportation terminal on Route 72 in Lebanon County, posted net income of $40.2 million, or 28 cents per diluted share, compared to $49.9 million, or 35 cents per diluted share, in the second quarter of 2013.
The company trades its shares on the NYSE under the ticker symbol SWFT.