Values and volumes boost Armstrong in Q2

Armstrong World Industries carved out a 5.2% sales gain and more than triple the net earnings in the second quarter.

"We delivered a solid quarter with constant currency sales growth of over 6% and grew adjusted EBITDA by almost 14% expanding margins by 190 bps," said Vic Grizzle, CEO. "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."

Global sales of $330.8 million was comprised of across-the-board growth in all segments contributing to growth, driven by higher volumes globally and higher average unit values.

Net earnings came in at $41.3 million, up from $16.9 million in the year-ago period.

Operating income was also up 51.6% thanks to the effects resulting from the separation of Armstrong Flooring, Inc. Adjusted operating income was up 19%.                                     

"Given our healthy sales growth in the first half of the year and our expectations for improving performance in our international markets for the balance of the year, we now expect constant currency sales to be in the range of $1.31 to $1.34 billion for 2017, representing 6% to 9% growth over the prior year," said Brian MacNeal, CFO.

Armstrong updated its guidance for adjusted earnings per share to between $2.65 to $2.75 per diluted share.