Armstrong World Industries, Inc. (NYSE: AWI) is an international designer and manufacturer of floors, ceilings and cabinets. Based in Lancaster, Pennsylvania, Armstrong operates 40 plants in 10 countries and has approximately 12,300 employees worldwide. In 2006, Armstrong’s net sales were $3.42 billion, with operating income of $210.8 million.
Armstrong World Industries, Inc. emerged from Chapter 11 reorganization on October 2, 2006. Its stock began trading on the New York Stock Exchange October 18, 2006 under the ticker symbol AWI. The Armstrong World Industries, Inc. Asbestos Personal Injury Settlement Trust, holds approximately 66% of AWI’s outstanding common shares. Armstrong's “Fourth Amended Plan of Reorganization, as Modified,” dated February 21, 2006, and confirmed by U.S. District Court Judge Eduardo Robreno in August 2006, become effective Oct. 2, 2006. The Plan includes a comprehensive settlement resolving AWI’s asbestos liability by establishing and funding a trust to compensate all current and future asbestos personal injury claimants. The company had filed for reorganization December 6, 2000, with the federal bankruptcy court in Delaware for reorganization under Chapter 11 because pending asbestos injury claims appeared to exceed the value of the company, and were growing.
“In addition to resolving AWI’s asbestos liability, we used the time in Chapter 11 to restructure our flooring business to make it more competitive,” Mr. Lockhart said. “We made substantial improvements in our cost structure by closing several plants and streamlining our workforce in the U.S. We have also expanded capacity to manufacture wood flooring, broadened our product lines and improved product quality and customer service.”
On January 11, 2007, Armstrong World Industries, Inc. and NPM Capital N.V. announced they were negotiating the sale of Tapijtfabriek H. Desseaux N.V. and its subsidiaries, the principal operating companies in Armstrong’s European Textile and Sports Flooring business segment, to NPM Capital N.V. The sale was finalized in April 2007.
On February 15, 2007, Armstrong World Industries, Inc. announced that it was initiating a review of its strategic alternatives
Armstrong World Industries, Inc. (AWI) is a global producer of flooring products and ceiling systems for use primarily in the construction and renovation of residential, commercial and institutional buildings. Through the Company’s United States operations and United States and international subsidiaries, it designs, manufactures and sells flooring products (primarily resilient and wood) and ceiling systems (primarily mineral fiber, fiberglass and metal) around the world. The Company also designs, manufactures and sells kitchen and bathroom cabinets in the United States. It operates in four segments: Resilient Flooring, Wood Flooring, Building Products and Cabinets.
Resilient Flooring
The Company’s Resilient Flooring segment produces and sources a range of floor coverings primarily for homes and commercial and institutional buildings. Manufactured products in this segment include vinyl sheet, vinyl tile and linoleum flooring. In addition, its Resilient Flooring segment sources and sells laminate flooring products, ceramic tile products, adhesives, installation and maintenance materials and accessories. Resilient Flooring products are offered in a variety of types, designs, and colors. It sells these products worldwide to wholesalers, large home centers, retailers, contractors and to the manufactured homes industry.
Wood Flooring
The Company’s Wood Flooring segment produces and sources wood flooring products for use in new residential construction and renovation, with some commercial applications in stores, restaurants and high-end offices. The product offering includes pre-finished solid and engineered wood floors in various wood species, and related accessories. All of its Wood Flooring sales are in North America. Its Wood Flooring products are generally sold to independent wholesale flooring distributors and large home centers. Its products are principally sold under the brand names Bruce, Hartco, Robbins, Timberland, Armstrong, HomerWood and Capella.
Building Products
The Company’s Building Products segment produces suspended mineral fiber, soft fiber and metal ceiling systems for use in commercial, institutional, and residential settings. In addition, its Building Products segment sources complementary ceiling products. Its products, which are sold worldwide, are available in numerous colors, performance characteristics and designs, and offer attributes, such as acoustical control, rated fire protection and aesthetic appeal. Commercial ceiling materials and accessories are sold to ceiling systems contractors and to resale distributors. Residential ceiling products are sold in North America primarily to wholesalers and retailers (including large home centers). Suspension system (grid) products manufactured by Worthington Armstrong Venture (WAVE) are sold by both Armstrong and its WAVE joint venture.
Cabinets
The Company’s Cabinets segment produces kitchen and bathroom cabinetry and related products, which are used primarily in the United States residential new construction and renovation markets. Through its system of company-owned and independent distribution centers and through direct sales to builders, its Cabinets segment provides design, fabrication and installation services to single and multi-family homebuilders, remodelers and consumers under the Armstrong brand name. All of Cabinets’ sales are in the United States.
The Company competes with Amtico International, Inc., Beaulieu International Group, N.V., Boa-Franc, Inc., Congoleum Corporation, Faus, Inc., Forbo Holding AG, Gerflor Group, Interface, Inc., IVC Group, Krono Holding AG, Mannington Mills, Inc., Metroflor Corporation, Mullican Flooring, L.P., Mohawk Industries, Inc., Pfleiderer AG, Shaw Industries, Inc., Somerset Hardwood Flooring, Tarkett AG, Wilsonart International, CertainTeed, Chicago Metallic Corporation, Georgia-Pacific Corporation, Knauf AMF GmbH & Co. KG, Lafarge SA, Odenwald Faserplattenwerk GmbH, Rockfon A/S, Saint-Gobain, USG Corporation, American Woodmark Corporation, Fortune Brands, Inc. and Masco Corporation.
Principal Subsidiaries: Armstrong Cork Finance Corporation; Armstrong Enterprises, Inc.; Armstrong Industrial Specialties, Inc.; Armstrong Industrial Specialties International, Inc.; Armstrong Realty Group, Inc.; Armstrong Ventures, Inc.; Armstrong World Industries Asia, Inc.; Armstrong World Industries (Delaware) Inc.; Armstrong World Industries (India) Inc.; Armstrong World Industries Latin America, Inc.; A W I (Nevada), Inc.; Charleswater Products, Inc.; Chemline Industries, Inc.; IWF, Inc.; I.W. Insurance Company; The W.W. Henry Company; Alphacoustic (UK) Ltd.; Armstrong-ABC Co., Ltd. (Japan); Armstrong Architectural Products S.L. (Spain); Armstrong Building Products (U.K.); Armstrong Building Products B.V. (Netherlands); Armstrong Building Products Company (Shanghai) Ltd. (China); Armstrong Building Products G.m.b.H. (Germany); Armstrong Building Products S.A. (France); Armstrong Europa G.m.b.H. (Germany); Armstrong Europe Services (U.K.); Armstrong Floor Products Europe G.m.b.H. (Germany); Armstrong Floor Products Europe Ltd. (U.K.); Armstrong Floor Products Europe Sarl. (France); Armstrong FSC, Ltd. (Bermuda); Armstrong Industrial Specialties G.m.b.H. (Germany); Armstrong Industrial Specialties International, SARL (France); Armstrong Industrial Specialties Ltd. (U.K.); Armstrong Insulation (Panyu) Co, Ltd. (China); Armstrong Insulation Products (U.K.); Armstrong Insulation Products A.G. (Switzerland); Armstrong Insulation Products Benelux, S.A. (Belgium); Armstrong Insulation Products G.m.b.H. (Germany); Armstrong Insulation Products S.A. (Spain); Armstrong Insulation Products S.A. (France); Armstrong Insulation Products Sp. zo.o. (Poland); Armstrong Insulation Rus. (Russia); Armstrong (Japan) K.K.; Armstrong Metal Ceilings Ltd. (U.K.); Armstrong-Nyles Pty. Ltd. (Australia); Armstrong (Singapore) Pte. Ltd.; Armstrong Textile Products G.m.b.H. (Germany); Armstrong (U.K.) Investments; Armstrong World Industries-A.C.I. B.V. (Netherlands); Armstrong World Industries Canada Ltd.; Armstrong World Industries (China) Ltd.; Armstrong World Industries de Mexico, S.A. de C.V.; Armstrong World Industries do Brasil Ltda. (Brazil); Armstrong World Industries, G.m.b.H. (Germany); Armstrong World Industries (H.K.) Limited (Hong Kong); Armstrong World Industries Italia S.r.l. (Italy); Armstrong World Industries Korea, Ltd.; Armstrong World Industries Ltd. (U.K.); Armstrong World Industries Pty. Ltd. (Australia); Armstrong World Industries (Thailand) Ltd.; Inarco Limited (India; 40%); ISA Co., Ltd. (Japan; 25%); Liberty Commercial Services Ltd. (Bermuda).
OVERALL
Beta: 1.85
Market Cap (Mil.): $2,609.28
Shares Outstanding (Mil.): 58.31
Annual Dividend: --
Yield (%): --
FINANCIALS
AWI Industry Sector
P/E (TTM): 242.56 9.86 13.52
EPS (TTM): -86.42 -- --
ROI: 0.40 4.03 1.28
ROE: 0.74 5.98 2.12
Statistics:
Public Company
Incorporated: 1891 as Armstrong, Brother & Company, Inc.
Employees: 10,572
Sales: $2.16 billion (1996)
Stock Exchanges: New York Philadelphia Pacific
SICs: 2891 Adhesives & Sealants; 2952 Asphalt Felts & Coatings; 3253 Ceramic Wall & Floor Tile; 3996 Linoleum, Asphalt-Feltbase & Other and Surface Floor Coverings, Not Elsewhere Classified
Name Age Since Current Position
O'Connor, James 74 2010 Chairman of the Board
Espe, Matthew 52 2010 President, Chief Executive Officer, Director
Mangas, Thomas 42 2010 Chief Financial Officer, Senior Vice President
Ready, Frank 48 2010 Executive Vice President and Chief Executive Officer, Flooring Products North America and Floor Asia
Grizzle, Victor 49 2011 Executive Vice President - Armstrong Building Products
McNamara, Stephen 43 2008 Vice President, Controller
Gaffney, James 70 2006 Director
Roberts, John 65 2006 Director
Askren, Stanley 50 2008 Director
Bonderman, David 68 2009 Director
Burns, Kevin 47 2009 Director
Address:
313 West Liberty Street
Lancaster, Pennsylvania 17603
U.S.A.
Armstrong World Industries, Inc. emerged from Chapter 11 reorganization on October 2, 2006. Its stock began trading on the New York Stock Exchange October 18, 2006 under the ticker symbol AWI. The Armstrong World Industries, Inc. Asbestos Personal Injury Settlement Trust, holds approximately 66% of AWI’s outstanding common shares. Armstrong's “Fourth Amended Plan of Reorganization, as Modified,” dated February 21, 2006, and confirmed by U.S. District Court Judge Eduardo Robreno in August 2006, become effective Oct. 2, 2006. The Plan includes a comprehensive settlement resolving AWI’s asbestos liability by establishing and funding a trust to compensate all current and future asbestos personal injury claimants. The company had filed for reorganization December 6, 2000, with the federal bankruptcy court in Delaware for reorganization under Chapter 11 because pending asbestos injury claims appeared to exceed the value of the company, and were growing.
“In addition to resolving AWI’s asbestos liability, we used the time in Chapter 11 to restructure our flooring business to make it more competitive,” Mr. Lockhart said. “We made substantial improvements in our cost structure by closing several plants and streamlining our workforce in the U.S. We have also expanded capacity to manufacture wood flooring, broadened our product lines and improved product quality and customer service.”
On January 11, 2007, Armstrong World Industries, Inc. and NPM Capital N.V. announced they were negotiating the sale of Tapijtfabriek H. Desseaux N.V. and its subsidiaries, the principal operating companies in Armstrong’s European Textile and Sports Flooring business segment, to NPM Capital N.V. The sale was finalized in April 2007.
On February 15, 2007, Armstrong World Industries, Inc. announced that it was initiating a review of its strategic alternatives
Armstrong World Industries, Inc. (AWI) is a global producer of flooring products and ceiling systems for use primarily in the construction and renovation of residential, commercial and institutional buildings. Through the Company’s United States operations and United States and international subsidiaries, it designs, manufactures and sells flooring products (primarily resilient and wood) and ceiling systems (primarily mineral fiber, fiberglass and metal) around the world. The Company also designs, manufactures and sells kitchen and bathroom cabinets in the United States. It operates in four segments: Resilient Flooring, Wood Flooring, Building Products and Cabinets.
Resilient Flooring
The Company’s Resilient Flooring segment produces and sources a range of floor coverings primarily for homes and commercial and institutional buildings. Manufactured products in this segment include vinyl sheet, vinyl tile and linoleum flooring. In addition, its Resilient Flooring segment sources and sells laminate flooring products, ceramic tile products, adhesives, installation and maintenance materials and accessories. Resilient Flooring products are offered in a variety of types, designs, and colors. It sells these products worldwide to wholesalers, large home centers, retailers, contractors and to the manufactured homes industry.
Wood Flooring
The Company’s Wood Flooring segment produces and sources wood flooring products for use in new residential construction and renovation, with some commercial applications in stores, restaurants and high-end offices. The product offering includes pre-finished solid and engineered wood floors in various wood species, and related accessories. All of its Wood Flooring sales are in North America. Its Wood Flooring products are generally sold to independent wholesale flooring distributors and large home centers. Its products are principally sold under the brand names Bruce, Hartco, Robbins, Timberland, Armstrong, HomerWood and Capella.
Building Products
The Company’s Building Products segment produces suspended mineral fiber, soft fiber and metal ceiling systems for use in commercial, institutional, and residential settings. In addition, its Building Products segment sources complementary ceiling products. Its products, which are sold worldwide, are available in numerous colors, performance characteristics and designs, and offer attributes, such as acoustical control, rated fire protection and aesthetic appeal. Commercial ceiling materials and accessories are sold to ceiling systems contractors and to resale distributors. Residential ceiling products are sold in North America primarily to wholesalers and retailers (including large home centers). Suspension system (grid) products manufactured by Worthington Armstrong Venture (WAVE) are sold by both Armstrong and its WAVE joint venture.
Cabinets
The Company’s Cabinets segment produces kitchen and bathroom cabinetry and related products, which are used primarily in the United States residential new construction and renovation markets. Through its system of company-owned and independent distribution centers and through direct sales to builders, its Cabinets segment provides design, fabrication and installation services to single and multi-family homebuilders, remodelers and consumers under the Armstrong brand name. All of Cabinets’ sales are in the United States.
The Company competes with Amtico International, Inc., Beaulieu International Group, N.V., Boa-Franc, Inc., Congoleum Corporation, Faus, Inc., Forbo Holding AG, Gerflor Group, Interface, Inc., IVC Group, Krono Holding AG, Mannington Mills, Inc., Metroflor Corporation, Mullican Flooring, L.P., Mohawk Industries, Inc., Pfleiderer AG, Shaw Industries, Inc., Somerset Hardwood Flooring, Tarkett AG, Wilsonart International, CertainTeed, Chicago Metallic Corporation, Georgia-Pacific Corporation, Knauf AMF GmbH & Co. KG, Lafarge SA, Odenwald Faserplattenwerk GmbH, Rockfon A/S, Saint-Gobain, USG Corporation, American Woodmark Corporation, Fortune Brands, Inc. and Masco Corporation.
Principal Subsidiaries: Armstrong Cork Finance Corporation; Armstrong Enterprises, Inc.; Armstrong Industrial Specialties, Inc.; Armstrong Industrial Specialties International, Inc.; Armstrong Realty Group, Inc.; Armstrong Ventures, Inc.; Armstrong World Industries Asia, Inc.; Armstrong World Industries (Delaware) Inc.; Armstrong World Industries (India) Inc.; Armstrong World Industries Latin America, Inc.; A W I (Nevada), Inc.; Charleswater Products, Inc.; Chemline Industries, Inc.; IWF, Inc.; I.W. Insurance Company; The W.W. Henry Company; Alphacoustic (UK) Ltd.; Armstrong-ABC Co., Ltd. (Japan); Armstrong Architectural Products S.L. (Spain); Armstrong Building Products (U.K.); Armstrong Building Products B.V. (Netherlands); Armstrong Building Products Company (Shanghai) Ltd. (China); Armstrong Building Products G.m.b.H. (Germany); Armstrong Building Products S.A. (France); Armstrong Europa G.m.b.H. (Germany); Armstrong Europe Services (U.K.); Armstrong Floor Products Europe G.m.b.H. (Germany); Armstrong Floor Products Europe Ltd. (U.K.); Armstrong Floor Products Europe Sarl. (France); Armstrong FSC, Ltd. (Bermuda); Armstrong Industrial Specialties G.m.b.H. (Germany); Armstrong Industrial Specialties International, SARL (France); Armstrong Industrial Specialties Ltd. (U.K.); Armstrong Insulation (Panyu) Co, Ltd. (China); Armstrong Insulation Products (U.K.); Armstrong Insulation Products A.G. (Switzerland); Armstrong Insulation Products Benelux, S.A. (Belgium); Armstrong Insulation Products G.m.b.H. (Germany); Armstrong Insulation Products S.A. (Spain); Armstrong Insulation Products S.A. (France); Armstrong Insulation Products Sp. zo.o. (Poland); Armstrong Insulation Rus. (Russia); Armstrong (Japan) K.K.; Armstrong Metal Ceilings Ltd. (U.K.); Armstrong-Nyles Pty. Ltd. (Australia); Armstrong (Singapore) Pte. Ltd.; Armstrong Textile Products G.m.b.H. (Germany); Armstrong (U.K.) Investments; Armstrong World Industries-A.C.I. B.V. (Netherlands); Armstrong World Industries Canada Ltd.; Armstrong World Industries (China) Ltd.; Armstrong World Industries de Mexico, S.A. de C.V.; Armstrong World Industries do Brasil Ltda. (Brazil); Armstrong World Industries, G.m.b.H. (Germany); Armstrong World Industries (H.K.) Limited (Hong Kong); Armstrong World Industries Italia S.r.l. (Italy); Armstrong World Industries Korea, Ltd.; Armstrong World Industries Ltd. (U.K.); Armstrong World Industries Pty. Ltd. (Australia); Armstrong World Industries (Thailand) Ltd.; Inarco Limited (India; 40%); ISA Co., Ltd. (Japan; 25%); Liberty Commercial Services Ltd. (Bermuda).
OVERALL
Beta: 1.85
Market Cap (Mil.): $2,609.28
Shares Outstanding (Mil.): 58.31
Annual Dividend: --
Yield (%): --
FINANCIALS
AWI Industry Sector
P/E (TTM): 242.56 9.86 13.52
EPS (TTM): -86.42 -- --
ROI: 0.40 4.03 1.28
ROE: 0.74 5.98 2.12
Statistics:
Public Company
Incorporated: 1891 as Armstrong, Brother & Company, Inc.
Employees: 10,572
Sales: $2.16 billion (1996)
Stock Exchanges: New York Philadelphia Pacific
SICs: 2891 Adhesives & Sealants; 2952 Asphalt Felts & Coatings; 3253 Ceramic Wall & Floor Tile; 3996 Linoleum, Asphalt-Feltbase & Other and Surface Floor Coverings, Not Elsewhere Classified
Name Age Since Current Position
O'Connor, James 74 2010 Chairman of the Board
Espe, Matthew 52 2010 President, Chief Executive Officer, Director
Mangas, Thomas 42 2010 Chief Financial Officer, Senior Vice President
Ready, Frank 48 2010 Executive Vice President and Chief Executive Officer, Flooring Products North America and Floor Asia
Grizzle, Victor 49 2011 Executive Vice President - Armstrong Building Products
McNamara, Stephen 43 2008 Vice President, Controller
Gaffney, James 70 2006 Director
Roberts, John 65 2006 Director
Askren, Stanley 50 2008 Director
Bonderman, David 68 2009 Director
Burns, Kevin 47 2009 Director
Address:
313 West Liberty Street
Lancaster, Pennsylvania 17603
U.S.A.