Armstrong profits jump ahead in Q2
Armstrong World Industries (AWI) reported second quarter net sales increased 1.4% to $325.4 million compared to second quarter 2022 sales of $321 million.
The manufacturer of ceiling and wall systems said mineral Fiber net sales decreased in the second quarter due to $17 million of lower volumes, partially offset by $16 million of favorable average unit volume. The year-over year decrease in volumes was driven primarily by softer market demand.
Architectural specialties increased 5.7% from prior-year results, driven by growth across most product categories and a favorable project mix, the Lancaster, Pennsylvania-based company said.
AWI also posted net earnings of $60.2 million for the period, rising 15.3% from net earnings of $52.2 million in the second quarter a year ago.
On July 24, AWI reported that it had acquired BŌK Modern, LLC. According to AWI, the company is a pioneer in the design and development of integrated architectural metal systems for interior and exterior applications.
During the second quarter, AWI repurchased 0.4 million shares of common stock for a total cost of $30 million, excluding the cost of commissions and taxes.
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The Bottom Line: While sales are nearly flat, profits at AWI jump ahead more than 15% to $60.2 million.
What the CEO said: “Our results this quarter continue to demonstrate the resilience of our business model and our team’s strong focus on execution,” said Vic Grizzle, AWI president and CEO.
“With the relentless commitment of our team to deliver results, we are on track to generate solid sales, earnings, and cash flow growth for 2023, even as challenging market conditions persist,” he added.
What the CFO said: “Our first half results are in-line with our expectations of delivering top line, bottom line and adjusted free cash flow growth in 2023. We are modestly updating our full year 2023 outlook to reflect our confidence in delivering the full year,” said Chris Calzaretta, AWI CFO. “Strong execution at our plants drove manufacturing productivity and operational efficiencies, while rigorous cost control discipline continued in the quarter.”AWI has updated its sales outlook for 2023 to a range of $1.265 billion to $1.305 billion compared 2022 sales of $1.233 billion.
Company info: Click here to read the full second quarter 2023 financial report from Armstrong World Industries.
