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Armstrong Flooring reports loss as wood flooring sales decline
admin//March 6, 2018//
Listen to this articleThe Manor Township-based flooring manufacturer issued its end-of-year earnings to investors this week, noting an overall decline in net sales from $1.2 billion in 2016 to $1.13 billion in 2017. The decline resulted in a net loss of $41.8 million last year, compared to a net income of $9.2 million in 2016.
The company attributed the drop to a continued dip in sales from its wood flooring segment. Sales from its wood flooring segment fell 11 percent, from $486.1 million in 2016 to $432.8 million in 2017. Armstrong closed plants in Mississippi and Tennessee related to its hardwood production last year, laying off 300 workers.
In its resilient flooring segment – including vinyl flooring – sales remained comparably stable, falling slightly from just over $707 million to just under $701 million. Last June, Armstrong purchased the vinyl composition tile segment of Mannington Mills, a New Jersey-based manufacturer, for $36 million.
Armstrong – which also operates the brands Bruce Hardwood Floors and Homerwood – recently saw the exit of its chief product officer Joe Bondi, who resigned from the company at the beginning of February.
Bondi will continue to oversee a new marketing strategy for the company until May 31. The new strategy includes giving third-party distributors more responsibility over the merchandising and in-store displays of Armstrong products.
Overall, the company has 15 manufacturing facilities, including one in Lancaster city, and employs 3,700 people. Armstrong Flooring, a public company traded on the New York Stock Exchange, was created in a split from Armstrong World Industries in 2016.
