Armstrong World Industries announced that following its assessment of preliminary third quarter results and projections for the fourth quarter of the year, it is revising its full year expectations for sales and adjusted EBITDA. The company now expects sales to be in the range of $2,680 million to $2,720 million and adjusted EBITDA to be in the range of $355 million to $375 million.
Armstrong also announced it expects to report third quarter adjusted EBITDA within the previously forecasted $110 million to $130 million range and sales below the previously forecasted $740 million to $780 million range when it releases its third quarter results on Monday, Oct. 27 at 11 a.m. EST.
"Unfortunately, our outlook for 2014 does not align with our prior expectations, which is disappointing for all of us," said Matt Espe, CEO. "Although the macroeconomic environment has weakened slightly versus our previous guidance, primarily impacting U.S. residential, Australia and Europe, market conditions alone did not necessitate this outlook adjustment. Our adjustment is driven primarily by intensifying price pressure and capacity utilization challenges impacting our European flooring business, for which we continue to evaluate strategic alternatives; a faster than anticipated share shift to LVT and away from traditional residential resilient products in North America; and continued price pressure and competition in our wood business. We expect our global ceilings and North American commercial flooring businesses to remain on plan within the context of our prior guidance."
Conference call/webcast information and the accompanying slide presentation will be available on the Investor Relations page of armstrong.com. A replay of the call will be available via webcast on the Investor Relations page for up to one year after the date of the call.
