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Sales, profits jump for Armstrong World Industries
CPBJ Staff//July 31, 2017
The manufacturer, based in Manor Township, Lancaster County, posted gains in both profits and sales for the second quarter of 2017.
The company separated last year from Armstrong Flooring Inc. to focus on ceilings.
Company sales for the three months ending June 30 were $330.8 million, up from $314.3 million for the same period a year ago. Net income rose to $41.3 million for the second quarter, up from $10.8 million from the year-ago quarter.
“I’m pleased with the execution around our growth initiatives and productivity in our plants, which combined with prudent cost management, enabled margin expansion over a strong prior year quarter,” company CEO Vic Grizzle said in a statement
The increase in profit was driven, in part, by a reduction in costs, including for pensions, the company said in a filing with the U.S. Securities and Exchange Commission. The drop in pension costs reflected an actuarial change related to the separation from Armstrong Flooring.
The savings, however, were partially offset by the cost of purchasing Tectum, an Ohio-based ceiling maker.
The acquisition also bumped up Armstrong’s employee count, which rose to 3,900 as of June 30 from 3,700 at the end of 2016, the company said, adding that it also idled a plant in China.
