Armstrong sales hold steady in 2000 but profits suffer

LANCASTER, Pa. -- Beset by a year ending with weaker sales and escalating raw material and energy costs that took a toll on profitability, Armstrong Holdings Inc. has reported its financial results for the fourth quarter and full year of 2000.

Sales in the fourth quarter from continuing operations were $659.1 million, a decrease from $722.8 million in the same period a year earlier. Sales in the floor coverings segment declined 26%. Weaker demand at retail and significant customer inventory reductions in the United States combined with the impact of foreign currency translation and lower pricing in Europe to produce the sales decrease. Wood products segment sales increased by 1.7% and building products segment sales rose 8.7%. The increase in the building products segment was the result of additional sales from its Gema metal ceilings business, which was acquired in 2000.