Earnings from continuing operations for the first quarter of 2002 were $21.9 million, or 54 cents per diluted share, as compared to $25.2 million, or 62 cents per diluted share for the first quarter of 2001.
Operating income of $40.5 million in the first quarter of 2002 decreased 6.5% from $43.3 million in the first quarter of 2001. Building Products was the only business segment in the company to report higher operating income. A reduced pension credit and higher medical costs also hurt operating income.
"Building Products is doing very well in a tough commercial market,” Chairman and CEO Michael D. Lockhart said. “We are pleased with the U.S. sales performance of our flooring business. This reflects good customer support for our new products and our marketing initiatives. “However, our performance in Europe was disappointing."
Resilient Flooring net sales in 2002 of $280.9 million decreased 3.5% from $291.1 million in 2001. Increases in the Americas were offset by a soft European market and the negative effects of foreign exchange rates. Operating income of $18.8 million in 2002 declined 17.2% from operating income of $22.7 million in 2001, primarily due to lower sales volume in Europe and higher medical and promotional expenses, partially offset by lower raw material costs and the impact of changes in long-term disability benefit policies for certain employees.
Wood Flooring net sales of $160.9 million in the first quarter of 2002 increased 3.9% from $154.9 million in 2001, primarily from increased volume from home center distributors. Operating income of $8.7 million in the first quarter of 2002 was lower than operating income of $10.1 million in the first quarter of 2001. The decrease in operating income was primarily driven by higher selling and advertising expenses, partially offset by higher sales and lower lumber costs.