 |
 |
||||||
[Oct 2006]
Armstrong Emerges from Chapter 11
AWI, Armstrong World Industries Inc (Lancaster, PA, USA), parent of ceramic floor tile company Armstrong Ceramic and a major player in the flooring, ceilings and cabinets fields, has announced that its "Fourth Amended Plan of Reorganization, as Modified," dated 21 February 2006, which was confirmed by U.S. District Court Judge Eduardo Robreno in August, has become effective and AWI has emerged from Chapter 11. 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.
"This is an exciting day for Armstrong and its employees," said Michael Lockhart, AWI's Chairman and CEO. "Today we emerged from Chapter 11 having made significant operational improvements that provide the opportunity to grow and strengthen our business.
"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. 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."
AWI has had several consecutive quarters of improved financial performance. In the second quarter of 2006 AWI nearly doubled its operating income (from US$36.6 million to US$72.5 million) from a year ago. This increase was primarily due to increased manufacturing productivity and a 3% sales increase. For the first six months of 2006, AWI's operating income increased to US$120.7 million (compared to US$44.3 million for the first six months of 2005). The improvement in operating income was primarily due to higher sales, improved manufacturing productivity and reduced SG&A expenses.
"I would like to thank the nearly 15,000 Armstrong employees around the world for their hard work, dedication and loyalty during the past six years," said Mr Lockhart. "Armstrong has gone through a lengthy and challenging Chapter 11 reorganization. We could not have overcome the many obstacles we encountered without the outstanding effort and commitment of our employees."
www.armstrong.com
ENDS