Armstrong World Industries, Inc.

$AWI - NYSE - Building Products
0 LAST
0 CHANGE $
0 CHANGE %
loader
ON 0
WATCHLISTS

COMMUNIQUÉ DETAILS

Up 0 0 Down
Armstrong World Industries Reports Fourth Quarter and Full Year 2012 Results




                                 Key Highlights



  * Fourth quarter operating income from continuing operations of $42 million,
    up 77% over the fourth quarter of 2011
  * Fourth quarter adjusted EBITDA from continuing operations of $72 million, up
    37% over the fourth quarter of 2011
  * Achieved full year 2012 as reported operating margins of 10.4% and full year
    adjusted EBITDA margins of 15.3%, both the highest since emergence
  * Management issues 2013 guidance


LANCASTER, Pa., February 19, 2013 --Armstrong World Industries, Inc. (NYSE:
AWI), a global leader in the design and manufacture of floors and ceilings,
today reported fourth quarter and full year 2012 results and issued 2013
guidance.

 Fourth Quarter Results from continuing operations



 (Amounts in millions except per share     Three Months Ended December
 data)                                                 31,

                                             2012                 2011   Change
                                          -------- -------------------- -------
 Net sales                                 $612.8               $623.0   (1.6)%

 Operating income                            42.3                 23.9    77.0%

 Net income                                   9.2                  9.8   (6.1)%

 Diluted earnings per share                 $0.15                $0.16   (6.3)%



Consolidated net sales for the fourth quarter decreased by approximately $10
million, or 2%, compared to the prior year period.  Excluding approximately $4
million of unfavorable foreign exchange impact for the quarter, sales declined
approximately 1% compared to the prior year period.  Improvements in price
offset volume declines and unfavorable mix.  The sale of the Patriot wood
flooring distribution business which occurred in the third quarter of 2012,
negatively impacted sales for the fourth quarter of 2012 by approximately $7
million when compared to the same period in 2011.

Operating income increased in spite of lower sales volumes, primarily due to
cost reduction actions taken under the company's cost savings program, which
resulted in lower manufacturing and core SG&A expenses when compared to the same
period last year.  Net income and diluted earnings per share were impacted by a
higher effective tax rate in the fourth quarter of 2012 primarily due to foreign
tax credit benefits recorded in the fourth quarter of 2011.

"I'm pleased to announce that adjusted EBITDA for the fourth quarter was up 37%
over the prior year as we delivered results in line with our previously issued
guidance, despite a choppy market environment," said Matt Espe, President and
CEO.  "We also made significant progress throughout 2012 on our strategic
initiatives, including the design and construction of our emerging markets
plants and the divestiture of non-core assets.  For the full year, we also
achieved record safety results and the highest adjusted EBITDA margins, at
15.3%, since emergence from bankruptcy."





 Additional (non-GAAP*) Financial Metrics from continuing operations



                                                Three Months
                                                Ended December
 (Amounts in millions except per share data)         31,
                                              -----------------
                                                2012      2011   Change
                                              ------- --------- -------
 Adjusted operating income                       $46       $29      62%

 Adjusted net income                              20        11      91%

 Adjusted diluted earnings per share           $0.34     $0.18      89%

 Free cash flow                                  $25       $90    (72)%



                                Three Months
                                   Ended
 (Amounts in millions)          December 31,
                              ----------------
                               2012      2011                            Change
                              ------ --------- --------------------------------
 Adjusted EBITDA

       Building Products        $68       $48                               42%

       Resilient Flooring         6         6                               13%

       Wood Flooring             11        12                              (8)%

       Unallocated Corporate   (13)      (13)                              (2)%
                              ------ --------- --------------------------------
 Consolidated Adjusted
 EBITDA                         $72       $53                               37%



 *The Company uses the above non-GAAP adjusted measures, as well as other non-
 GAAP measures mentioned below, in managing the business and believes the
 adjustments provide meaningful comparisons of operating performance between
 periods. Adjusted operating income,  adjusted EBITDA, adjusted net income, and
 adjusted EPS exclude the impact of foreign exchange, restructuring charges and
 related costs, impairments, and certain other nonrecurring gains and losses.
  Free cash flow is defined as cash from operations and dividends received from
 the WAVE joint venture, less expenditures for property and equipment, less
 restricted cash, and is adjusted to remove the impact of cash used or proceeds
 received for acquisitions and divestitures.  The company believes free cash
 flow is useful because it provides insight into the amount of cash that the
 Company has available for discretionary uses, after expenditures for capital
 commitments and adjustments for acquisitions/divestitures.  Adjusted figures
 are reported in comparable dollars using the budgeted exchange rate for 2012,
 and are reconciled to the most comparable GAAP measures in tables at the end
 of this release.



In spite of sales declining 1% on a constant foreign exchange basis, adjusted
operating income and EBITDA improved by 62% and 37%, respectively, in the fourth
quarter of 2012 when compared to the prior year period.  These improvements were
driven primarily by reductions in manufacturing costs and SG&A expenses, coupled
with the impact of better pricing.  Adjusted net income and earnings per share
also benefited from a reduction in the adjusted effective tax rate from 42% to
40%.  Free cash flow declined over the prior year as the special dividend
received from WAVE in the fourth quarter of 2011 did not recur and there was
less improvement in working capital when compared to the prior year, as the
working capital program initiated in 2011 drove one time gains.  Increased
capital expenditures associated with emerging market investments also negatively
impacted free cash flow, even though cash earnings increased.



  Fourth Quarter Segment Highlights



  Building Products

                                  Three Months Ended
                                     December 31,
                              ---------------------------
                                  2012             2011       Change
                              ----------       ----------   ---------
  Total segment net sales       $292.8           $289.6         1.1%

  Operating income               $52.5            $35.1        49.6%



Net sales improved by approximately 1% when compared to the prior year as higher
volumes in the North American commercial business and improvements in price and
mix were able to offset volume declines in Europe.  Operating income improved
primarily due to reductions in manufacturing costs and SG&A expenses and
favorable pricing.



  Resilient Flooring

                                  Three Months Ended
                                     December 31,
                              ---------------------------
                                  2012             2011       Change
                              ----------       ----------   ---------
  Total segment net sales       $212.2           $221.9       (4.4)%

  Operating (loss)              ($1.0)           ($4.9)        79.6%



The decline in net sales was driven by lower volumes in Europe and in North
America, where continued softness in commercial sectors tied to public spending
and lower sales in the home center channel negatively impacted volumes.
 Operating income improved as more favorable mix and reductions in manufacturing
costs were able to offset volume declines and start up costs associated with the
ramp up of the flooring plant in China.



  Wood Flooring

                                  Three Months Ended
                                     December 31,
                              ---------------------------
                                  2012             2011        Change
                              ----------       ----------   ----------
  Total segment net sales       $107.8           $111.5        (3.3)%

  Operating income                $7.5             $9.1       (17.6)%



Net sales declined in the fourth quarter primarily due the divestiture of the
Patriot distribution business which occurred in the third quarter of 2012.
 Overall volumes improved, driven by strong sales in the builder channel which
negatively impacted mix.  Operating income declined in the fourth quarter as
lumber costs increased and higher sales into the builder channel drove increased
volumes but less favorable mix, which were only partially offset by reduced
manufacturing costs.



Corporate

Unallocated corporate expense of $16.7 million increased from $15.4 million in
the prior year due to a $3.5 million lower pension credit, which more than
offset reductions in core SG&A expenses.



Full Year Results from continuing operations

                                             Year Ended December
 (Amounts in millions except per share data)         31,
                                            ---------------------
                                                 2012       2011   Change
                                            ---------- ---------- -------
 Net sales (as reported)                     $2,618.9   $2,723.1   (3.8)%

 Operating income (as reported)                 271.2      239.8    13.1%

 Adjusted EBITDA                                  400        374       7%

 Free cash flow                                    89        170    (48)%




Excluding approximately $48 million of unfavorable foreign exchange impact,
sales declined approximately 2% compared to the prior year period.  On a
consolidated level, improvements in price and mix were unable to offset volume
declines.  Volumes were negatively impacted by continued softness in commercial
markets, particularly in sectors tied to public spending, lower sales into the
U.S. home center channel, continued softness in European markets and the sale of
the Patriot distribution business.

The improvement in operating income and adjusted EBITDA was driven primarily by
reductions in manufacturing and SG&A expenses and improvements in price, which
more than offset the impact of lower volumes.  As reported operating income was
impacted by approximately $25 million of charges associated with the closure of
the Mobile, AL building products facility and headcount reductions in European
Building Products in 2012, approximately $13 million of costs primarily
associated with the closure of the Beaver Falls, PA building products facility
in 2011, and approximately $21 million of severance and restructuring related
costs in European Flooring in 2011.

The reduction in free cash flow was driven by higher capital expenditures, a
reduction in dividends from WAVE as the special dividend received in 2011 did
not recur, and less improvement in working capital as the company initiated
working capital improvement plans last year which drove one-time gains.  These
reductions offset increased cash earnings for the year.



Discontinued Operations

In September 2012, the Company announced an agreement to sell its Cabinets
business to American Industrial Partners.  The sale was completed in October
2012.  The transaction was subject to customary working capital adjustments,
which are expected to be completed in the first quarter of 2013.  The financial
results of the cabinets business, which have previously been shown as a separate
reporting segment, have been reclassified as discontinued operations for all
periods presented.


Market Outlook and 2013 Guidance ((1)        )

For 2013, the Company expects U.S. GDP of approximately 2%, which translates
into a flat to slightly down commercial opportunity, with continued weakness in
education and, to a lesser extent, healthcare.  New residential construction
should continue to improve and new home starts are expected to be approximately
950,000 in 2013.  The Company remains cautious on the outlook for residential
repair and remodel activity and expects it to be flat to up slightly despite
pent up demand, as consumers seem willing to defer action until they are more
confident rather than trade down.  In Europe, GDP is expected to show slight
positive growth in the U.K., and be flat to down slightly in the Eurozone.  This
type of operating environment translates into lower sales in those regions, but
expected growth in Eastern Europe, particularly in Russia, should
disproportionally benefit the ceilings business.  In the Pacific Rim,  Australia
is expected to continue to be a challenge and down year on year, but solid
growth is expected in China.

The Company expects 2013 full year sales to be in the $2.7 to $2.8 billion
range, up from 2012, and adjusted EBITDA to be in the $390 to $420 million
range, or roughly flat with 2012.  2013 adjusted EPS is expected to be $2.30 to
$2.60 per diluted share and free cash flow is anticipated to be between $75 and
$125 million.

"Given the macro-economic backdrop and the lag between starts and when our
products get installed in the cycle, our outlook for 2013 remains tempered, but
I'm confident we've built a competitive cost structure and our strategic
investments in emerging markets, like China and Russia, will position Armstrong
to capitalize on improving economic conditions as world economies begin to
recover," said Tom Mangas, Senior Vice President and CFO."

For the first quarter of 2013, sales are expected to be between $600 and $650
million and adjusted EBITDA to be in the range of $68 to $83 million.

As a result of improving conditions in the debt capital markets the Company is
about to launch a process to refinance its existing credit agreement. The
Company anticipates achieving lower interest expense, longer maturities and
several minor technical improvements versus the current credit agreement.  The
Company does not anticipate this transaction will materially change debt levels
or liquidity, as the anticipated amount of the refinancing will be $1.025
billion.

((1)) Sales guidance includes the impact of foreign exchange.  Guidance metrics,
other than sales, are presented using 2013 budgeted foreign exchange rates.
 Adjusted EPS guidance for 2013 is calculated based on an adjusted effective tax
rate of 39%.



Earnings Webcast

Management will host a live Internet broadcast beginning at 1:00 p.m. Eastern
time today, during which fourth quarter and full year results will be discussed.
This event will be broadcast live on the Company's Web site.  To access the call
and accompanying slide presentation, go to www.armstrong.com and click "For
Investors".  The replay of this event will also be available on the Company's
Web site for up to one year after the date of the call.



Uncertainties Affecting Forward-Looking Statements

Disclosures in this release, including without limitation, those relating to
future financial results guidance, and in our other public documents and
comments contain forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995.  Those statements provide our future
expectations or forecasts and can be identified by our use of words such as
"anticipate," "estimate," "expect," "project," "intend," "plan," "believe,"
"outlook," "target," "predict," "may," "will," "would," "could," "should,"
"seek," and other words or phrases of similar meaning in connection with any
discussion of future operating or financial performance.  Forward-looking
statements, by their nature, address matters that are uncertain and involve
risks because they relate to events and depend on circumstances that may or may
not occur in the future.  As a result, our actual results may differ materially
from our expected results and from those expressed in our forward-looking
statements.  A more detailed discussion of the risks and uncertainties that
could cause our actual results to differ materially from those projected,
anticipated or implied is included in the "Risk Factors" and "Management's
Discussion and Analysis" sections of our reports on Forms 10-K and 10-Q filed
with the U.S. Securities and Exchange Commission ("SEC").  Forward- looking
statements speak only as of the date they are made.  We undertake no obligation
to update any forward-looking statements beyond what is required under
applicable securities law.

About Armstrong and Additional Information

The Company expects to file its Annual Report on Form 10-K with the SEC on or
about February 25, 2013.

Armstrong World Industries, Inc. is a global leader in the design and
manufacture of floors and ceilings.  In 2012, Armstrong's consolidated net sales
from continuing operations totaled approximately $2.6 billion.  As of December
31, 2012, Armstrong operated 32 plants in eight countries and had approximately
8,500 employees worldwide.

Additional forward looking non-GAAP metrics are available on our web site at
http://www.armstrong.com/ under the Investor Relations tab. Our website is not
part of this release and references to our website address in this release are
intended to be inactive textual references only.



 As Reported Financial
 Highlights

                              FINANCIAL HIGHLIGHTS

               Armstrong World Industries, Inc. and Subsidiaries

              (amounts in millions, except for per-share amounts)

                                  (Unaudited)



                               Three Months Ended               Year Ended
                                     December 31,              December 31,
                            ------------------------------ --------------------
                                2012                 2011       2012       2011
                            --------- -------------------- ---------- ---------
 Net Sales                    $612.8               $623.0   $2,618.9   $2,723.1

 Costs of goods sold           477.1                497.3    1,985.7    2,075.2

 Selling, general and          105.7                111.3      418.3      454.0
 administrative expenses

 Restructuring charges, net    (0.4)                  1.0      (0.4)        9.0

 Equity (earnings) from
 joint venture                (11.9)               (10.5)     (55.9)     (54.9)
                            --------- -------------------- ---------- ---------
   Operating income             42.3                 23.9      271.2      239.8



 Interest expense               14.0                 10.9       53.7       48.5

 Other non-operating expense     0.0                  0.1        0.5        1.3

 Other non-operating
 (income)                      (1.4)                (0.7)      (3.5)      (3.8)
                            --------- -------------------- ---------- ---------
 Earnings from continuing
 operations before income
 taxes                          29.7                 13.6      220.5      193.8

 Income tax expense             20.5                  3.8       76.1       81.0
                            --------- -------------------- ---------- ---------
   Net income from
   continuing operations        $9.2                 $9.8     $144.4     $112.8
                            --------- -------------------- ---------- ---------


 Net income (loss) from
 discontinued operations,
 net of tax (benefit)
 expense of $0.1,  ($1.0),
 ($7.1) and ($0.2)               0.1                (1.3)     (12.2)      (0.4)
                            --------- -------------------- ---------- ---------
 Loss on sale of
 discontinued business, net
 of tax benefit of ($0.6), $
 -, ($0.6), $-                 (0.9)                    -      (0.9)          -
                            --------- -------------------- ---------- ---------
   Net (loss) from
   discontinued operations     (0.8)                (1.3)     (13.1)      (0.4)
                            --------- ------------------------------- ---------
   Net income                   $8.4                 $8.5     $131.3     $112.4
                            --------- -------------------- ---------- ---------


 Other comprehensive income
 (loss), net of tax:

   Foreign currency
   translation adjustments     (0.1)                (3.7)        7.0      (1.6)

   Derivative income (loss)      2.0                (1.9)      (5.2)      (9.0)

   Pension and
   postretirement
   adjustments                (65.8)               (88.0)     (58.2)     (78.7)
                            --------- -------------------- ---------- ---------
   Total other comprehensive
   income (loss)              (63.9)               (93.6)     (56.4)     (89.3)
                            --------- -------------------- ---------- ---------
 Total comprehensive (loss)
 income                      ($55.5)              ($85.1)      $74.9      $23.1
                            --------- -------------------- ---------- ---------


 Earnings per share of
 common stock, continuing
 operations

   Basic                       $0.15                $0.16      $2.43      $1.92

   Diluted                     $0.15                $0.16      $2.41      $1.91



 (Loss) per share of common
 stock, discontinued
 operations

   Basic                     ($0.01)              ($0.02)    ($0.22)    ($0.01)

   Diluted                   ($0.01)              ($0.02)    ($0.22)    ($0.01)



 Net earnings per share of
 common stock:

   Basic                       $0.14                $0.14      $2.21      $1.91

   Diluted                     $0.14                $0.14      $2.19      $1.90



 Average number of common
 shares outstanding


   Basic                        59.0                 58.4       58.9       58.3

   Diluted                      59.6                 58.8       59.5       58.8



 Dividends declared per
 common share                     $-                   $-      $8.55         $-





                                Segment Results

               Armstrong World Industries, Inc. and Subsidiaries

                             (amounts in millions)

                                  (Unaudited)





                               Three Months Ended          Year Ended December
                                  December 31,                     31,
                           ---------------------------   ----------------------
 Net Sales                    2012               2011         2012         2011
                           --------   ----------------   ----------   ---------
 Building Products          $292.8             $289.6     $1,218.9     $1,237.5

 Resilient Flooring          212.2              221.9        939.4      1,002.3

 Wood Flooring               107.8              111.5        460.6        483.3
                           --------   ----------------   ----------   ---------
   Total net sales          $612.8             $623.0     $2,618.9     $2,723.1
                           --------   ----------------   ----------   ---------




 Operating Income (loss)

 Building Products           $52.5              $35.1       $230.4       $226.1

 Resilient Flooring          (1.0)              (4.9)         56.9         15.7

 Wood Flooring                 7.5                9.1         37.3         43.4

 Unallocated Corporate
 (expense)                  (16.7)             (15.4)       (53.4)       (45.4)
                           --------   ----------------   ----------   ---------
   Total Operating Income    $42.3              $23.9       $271.2       $239.8
                           --------   ----------------   ----------   ---------




                      Selected Balance Sheet Information

                             (amounts in millions)

                                  (Unaudited)

 Assets                                December 31, 2012     December 31, 2011
                                      -------------------   ------------------
 Current assets                                 $1,019.9              $1,209.3

 Property, plant and
 equipment, net                                  1,005.0                 887.9

 Other noncurrent
 assets                                            829.4                 897.5
                                      -------------------   ------------------
   Total assets                                 $2,854.3              $2,994.7
                                      -------------------   ------------------


 Liabilities and
 shareholders' equity

  Current liabilities                             $384.7                $386.2

  Noncurrent
 liabilities                                     1,750.5               1,478.3

  Equity                                           719.1               1,130.2
                                      -------------------   ------------------
   Total liabilities and
   shareholders' equity                         $2,854.3              $2,994.7
                                     --------------------   ------------------






                      Selected Cash Flow Information((1))

                             (amounts in millions)

                                  (Unaudited)



                                                                 Year Ended
                                                                December 31,
                                                            -------------------
                                                                2012       2011
                                                            ---------   -------
 Net income                                                   $131.3     $112.4

 Other adjustments to reconcile net income to net cash
 provided by operating activities                              106.7       99.0

 Changes in operating assets and liabilities, net             (18.0)     (11.7)
                                                            ---------   -------
 Net cash provided by operating activities                     220.0      199.7

 Net cash (used for) investing activities                     (91.9)      (9.5)

 Net cash (used for) financing activities                    (273.7)     (28.8)



 Effect of exchange rate changes on cash and cash
 equivalents                                                     1.4        3.4
                                                            ---------   -------
 Net (decrease) increase in cash and cash equivalents        (144.2)      164.8

 Cash and cash equivalents, beginning of period                480.6      315.8
                                                            ---------   -------
 Cash and cash equivalents, end of period                     $336.4     $480.6
                                                            ---------   -------
 1. Cash flow information includes cash flows attributable to Cabinets.


Supplemental Reconciliations of GAAP to non-GAAP Results (unaudited)
(Amounts in millions, except per share data)

To supplement its consolidated financial statements presented in accordance with
accounting principles generally accepted in the United States (GAAP), the
Company provides additional measures of performance adjusted to exclude the
impact of foreign exchange, restructuring charges and related costs,
impairments, and certain other gains and losses.  Adjusted figures are reported
in comparable dollars using the budgeted exchange rate for 2012.  The Company
uses these adjusted performance measures in managing the business, including
communications with its Board of Directors and employees, and believes that they
provide users of this financial information with meaningful comparisons of
operating performance between current results and results in prior periods. The
Company believes that these non-GAAP financial measures are appropriate to
enhance understanding of its past performance, as well as prospects for its
future performance.  A reconciliation of these adjustments to the most directly
comparable GAAP measures is included in this release and on the Company's
website. These non-GAAP measures should not be considered in isolation or as a
substitute for the most comparable GAAP measures.  Non-GAAP financial measures
utilized by the Company may not be comparable to non-GAAP financial measures
used by other companies.



 CONSOLIDATED RESULTS FROM CONTINUING OPERATIONS



                                                                    Year Ended
                              Three Months Ended
                                 December 31,                December 31,
                           ------------------------   -------------------------
                            2012              2011      2012               2011
                           ------   ---------------   -------   ---------------
 Adjusted EBITDA             $72               $53      $400               $374

 D&A/Fx*                    (26)              (24)     (100)              (102)
                           ------   ---------------   -------   ---------------
 Operating Income,           $46               $29      $300               $272
 Adjusted

 Cost reduction                4                 3        25                 24
 initiatives expenses

 Restructuring                 -                 1         -                  9

 Impairment                    1                 1         6                  3

 Foreign exchange            (1)                 -       (2)                (4)
 impact
                           ------   ---------------   -------   ---------------
   Operating Income,
   Reported                  $42               $24      $271               $240
                           ------   ---------------   -------   ---------------


 *Excludes accelerated depreciation associated with cost reduction initiatives
 reflected below.  Actual D&A as reported is $27.0 million for the three months
 ended December 31, 2012, $25.0 million for the three months ended December
 31, 2011, $112.7 million for the year ended December 31, 2012, and $113.8
 million for the year ended December 31, 2011.







 BUILDING PRODUCTS

                                       Three Months Ended          Year Ended
                                          December 31,            December 31,
                                   ---------------------------   --------------
                                    2012                 2011     2012     2011
                                   ------   ------------------   ------   -----
 Adjusted EBITDA                     $68                  $48     $306     $288

 D&A/Fx                             (14)                 (13)     (52)     (51)
                                   ------   ------------------   ------   -----
 Operating Income, Adjusted          $54                  $35     $254     $237

 Cost reduction initiatives            2                    -       20       11
 expenses

 Restructuring                         -                    -        -        1

 Impairment                            -                    -        5        -

 Foreign exchange impact               -                    -      (1)      (1)
                                   ------   ------------------   ------   -----
   Operating Income, Reported        $52                  $35     $230     $226
                                   ------   ------------------   ------   -----






















 RESILIENT FLOORING

                                       Three Months Ended          Year Ended
                                          December 31,            December 31,
                                   ---------------------------   --------------
                                    2012                 2011     2012     2011
                                   ------   ------------------   ------   -----
 Adjusted EBITDA                      $6                   $6      $87      $66

 D&A/Fx                              (7)                  (7)     (28)     (29)
                                   ------   ------------------   ------   -----
 Operating (Loss) Income,           ($1)                 ($1)      $59      $37
 Adjusted

 Cost reduction initiatives            -                    3        2       14
 expenses

 Restructuring                         -                    1        -        7

 Impairment                            -                    -        -        2

 Foreign exchange impact               -                    -        -      (2)
                                   ------   ------------------   ------   -----
   Operating (Loss) Income,
   Reported                         ($1)                 ($5)      $57      $16
                                   ------   ------------------   ------   -----








 WOOD FLOORING

                                       Three Months Ended          Year Ended
                                          December 31,            December 31,
                                   ---------------------------   --------------
                                    2012                 2011     2012     2011
                                   ------   ------------------   ------   -----
 Adjusted EBITDA                     $11                  $12      $49      $54

 D&A/Fx                              (2)                  (2)     (11)     (11)
                                   ------   ------------------   ------   -----
 Operating Income, Adjusted           $9                  $10      $38      $43

 Cost reduction initiatives
 (income)                              -                    -        1      (1)

 Impairment                            1                    1        1        1

 Foreign exchange impact               -                    -      (1)        -
                                   ------   ------------------   ------   -----
   Operating Income, Reported         $8                   $9      $37      $43
                                   ------   ------------------   ------   -----








 UNALLOCATED CORPORATE

                                     Three Months Ended           Year Ended
                                        December 31,             December 31,
                                 ---------------------------   ----------------
                                   2012                2011      2012      2011
                                 -------   -----------------   -------   ------
 Adjusted EBITDA                  ($13)               ($13)     ($42)     ($34)

 D&A/Fx                             (3)                 (2)       (9)      (11)
                                 -------   -----------------   -------   ------
 Operating (Loss), Adjusted       ($16)               ($15)     ($51)     ($45)

 Cost reduction initiatives           2                   -         2         -
 expenses

 Restructuring                        -                   -         -         1

 Foreign exchange impact            (1)                   -         -       (1)
                                 -------   -----------------   -------   ------
   Operating (Loss), Reported     ($17)               ($15)     ($53)     ($45)
                                 -------   -----------------   -------   ------


 CONSOLIDATED RESULTS FROM CONTINUING OPERATIONS





                       Three Months Ended
                          December 31,               Year Ended December 31,
                 ------------------------------- ------------------------------
                      2012            2011            2012            2011
                 --------------- --------------- --------------- --------------


                          Per             Per             Per             Per
                  Total   Share   Total   Share   Total   Share   Total   Share
                 ------- ------- ------- ------- ------- ------- ------- ------
 Adjusted
 EBITDA             $72             $53            $400            $374



 D&A as
 reported          (27)            (25)           (113)           (114)

 Accelerated
 Deprecation/Fx       1               1              13              12
                 -------         -------         -------         -------
 Operating
 Income,
 Adjusted           $46             $29            $300            $272

 Other non-
 operating
 (expense)         (12)            (11)            (51)            (45)
                 -------         -------         -------         -------
 Earnings
 Before Taxes,
 Adjusted            34              18             249             227



 Adjusted tax
 (expense) @
 40% for 2012
 and 42% for
 2011              (14)             (7)           (100)            (96)
                 ------- ------- ------- ------- ------- ------- ------- ------
 Net Earnings,
 Adjusted           $20   $0.34     $11   $0.18    $149   $2.51    $131   $2.24



 Pre-tax
 adjustment
 items              (4)             (5)            (29)            (32)

 Reversal of
 adjusted tax
 expense @ 40%
 for 2012 and
  42% for 2011       14               7             100              96

 Ordinary tax      (10)             (4)            (70)            (72)

 Unbenefitted
 foreign losses     (7)             (7)            (15)            (15)

 Foreign tax
 credits              -               5              16               5

 Tax adjustment
 items              (4)               3             (7)               -
                 ------- ------- ------- ------- ------- ------- ------- ------
 Net Earnings,
 Reported            $9   $0.15     $10   $0.16    $144   $2.41    $113   $1.91
                 ------- ------- ------- ------- ------- ------- ------- ------


















                                                    Three Months    Year Ended
                                                        Ended        December
 CASH FLOW ((1))                                    December 31,        31,
                                                   --------------- ------------
                                                    2012     2011   2012   2011
                                                   ------   ------ ------ -----
 Net Cash From Operations                            $89      $80   $220   $200

 Less: net cash (used for) provided by investing    (41)       24   (92)    (9)

 Add back (subtract) adjustments to reconcile to
 free cash flow

 Other                                                 2        2      2      3

 Restricted Cash                                       -     (20)    (2)   (28)

 Acquisition (Divestiture)                          (25)        4   (39)      4
                                                   ------   ------ ------ -----
 Free Cash Flow                                      $25      $90    $89   $170

 1. Cash flow information includes cash flows attributable to Cabinets.




Supplemental Schedule of Geographic Sales from Continuing Operations (unaudited)

(Amounts in millions)


 As reported     Three Months
 net sales by        Ended                                Year Ended
 geography       December 31,                            December 31,
               -----------------            Change   ---------------------             Change
                  2012     2011    Change    ex Fx        2012       2011    Change     ex Fx
               -------- -------- --------- --------- ---------- ---------- --------- --------
 CONSOLIDATED

    Americas    $432.9   $434.1    (0.3)%    (0.5)%   $1,873.9   $1,903.9    (1.6)%    (1.4)%

    Europe       120.1    131.8    (8.9)%    (5.9)%      523.9      597.3   (12.3)%    (6.1)%

    Asia          59.8     57.1      4.7%      5.6%      221.1      221.9    (0.4)%      2.4%
               -------- -------- --------- --------- ---------- ---------- --------- --------
 Total
 consolidated
 net sales      $612.8   $623.0    (1.6)%    (1.1)%   $2,618.9   $2,723.1    (3.8)%    (2.1)%



 BUILDING
 PRODUCTS

    Americas    $180.4   $174.2      3.6%      3.3%     $757.1     $749.3      1.0%      1.2%

    Europe        77.5     81.3    (4.7)%    (2.9)%      333.6      356.8    (6.5)%    (1.1)%

    Asia          34.9     34.1      2.3%      3.3%      128.2      131.4    (2.4)%      0.7%
               -------- -------- --------- --------- ---------- ---------- --------- --------
 Total
 segment net
 sales          $292.8   $289.6      1.1%      1.6%   $1,218.9   $1,237.5    (1.5)%      0.5%



 RESILIENT
 FLOORING

    Americas    $144.7   $148.4    (2.5)%    (2.8)%     $656.2     $671.3    (2.2)%    (2.1)%

    Europe        42.6     50.5   (15.6)%   (10.7)%      190.3      240.5   (20.9)%   (13.6)%

    Asia          24.9     23.0      8.3%      9.2%       92.9       90.5      2.7%      4.9%
               -------- -------- --------- --------- ---------- ---------- --------- --------
 Total
 segment net
 sales          $212.2   $221.9    (4.4)%    (3.4)%     $939.4   $1,002.3    (6.3)%    (4.1)%




AWI reports Q4 and Full Year 2012 results:
http://hugin.info/151178/R/1679145/548281.pdf



This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
    other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
     originality of the information contained therein.

Source: Armstrong World Industries, Inc. via Thomson Reuters ONE
[HUG#1679145]



SHARE THIS: Twitter StockTwits LinkedIn Google Plus SHORT URL: http://bdvt.co/nzw

SIGN IN TO BOARDVOTE

FORGOT PASSWORD?