AWI reports loss for Q1
Armstrong World Industries (AWI) posted first quarter sales of $248.7 million, rising 3% from first quarter 2019 sales of $242.1 million.
But the ceiling and wall systems manufacturer reported a net loss of $226.2 million for the quarter compared to net earnings of $39.1 million for the same period a year ago.
During the quarter AWI entered into an agreement to transfer approximately $1 billion of outstanding retiree pension benefit obligations and administration related to approximately 10,000 retirees and beneficiaries under its U.S. Retirement Income Plan to Athene Annuity and Life Company and Athene Annuity & Life Assurance Company of New York.
The transaction resulted in a non-cash expense of $374.4 million for AWI. The Lancaster, Pa.-based company said it did not make any cash contributions to the retirement plan as a result of the transaction.
The Bottom Line: Sales rise 3% to $248.7 million as the company reports a first quarter net loss of $e226.2 million.
What the CEO said: “While first quarter results came in broadly as expected, our focus has shifted to the impacts of COVID-19 and the safety and well-being of all of our stakeholders,” said Vic Grizzle, President and CEO of AWI. “Safety has always been a non-negotiable operating principle at Armstrong, and while COVID-19 presents significant challenges, our teams are delivering. Our employees have worked methodically, collaboratively and with great agility to adapt our processes to enable social distancing and to operate within CDC guidelines across our entire network.”
Staying closely connected with customers and employees remains a top priority, and teams in every part of our business are using digital tools to manage this transition as seamlessly as possible. I’m particularly proud of how our manufacturing teams have been able to prioritize and serve a surge in orders that support life-sustaining healthcare facility expansions and re-purposing spaces for medical use. Armstrong is a strong company with a 160 year history, an experienced leadership team, a strong balance sheet, and a deep set of core values. Armstrong has weathered crises in the past and we will weather this one as well.”
Company info: The full first quarter report from Armstrong World Industries can be read here.
But the ceiling and wall systems manufacturer reported a net loss of $226.2 million for the quarter compared to net earnings of $39.1 million for the same period a year ago.
During the quarter AWI entered into an agreement to transfer approximately $1 billion of outstanding retiree pension benefit obligations and administration related to approximately 10,000 retirees and beneficiaries under its U.S. Retirement Income Plan to Athene Annuity and Life Company and Athene Annuity & Life Assurance Company of New York.
The transaction resulted in a non-cash expense of $374.4 million for AWI. The Lancaster, Pa.-based company said it did not make any cash contributions to the retirement plan as a result of the transaction.
The Bottom Line: Sales rise 3% to $248.7 million as the company reports a first quarter net loss of $e226.2 million.
What the CEO said: “While first quarter results came in broadly as expected, our focus has shifted to the impacts of COVID-19 and the safety and well-being of all of our stakeholders,” said Vic Grizzle, President and CEO of AWI. “Safety has always been a non-negotiable operating principle at Armstrong, and while COVID-19 presents significant challenges, our teams are delivering. Our employees have worked methodically, collaboratively and with great agility to adapt our processes to enable social distancing and to operate within CDC guidelines across our entire network.”
Staying closely connected with customers and employees remains a top priority, and teams in every part of our business are using digital tools to manage this transition as seamlessly as possible. I’m particularly proud of how our manufacturing teams have been able to prioritize and serve a surge in orders that support life-sustaining healthcare facility expansions and re-purposing spaces for medical use. Armstrong is a strong company with a 160 year history, an experienced leadership team, a strong balance sheet, and a deep set of core values. Armstrong has weathered crises in the past and we will weather this one as well.”
Company info: The full first quarter report from Armstrong World Industries can be read here.