Armstrong Flooring (AFI) Misses Q4 EPS by 9c, Plans Organizational Streamlining

Armstrong Flooring (NYSE: AFI) reported Q4 EPS of ($0.22), $0.09 worse than the analyst estimate of ($0.13). Revenue for the quarter came in at $271.7 million versus the consensus estimate of $277.31 million.

Organizational Streamlining and Related Cost Reduction Plan

The Company is combining its commercial and residential go-to-market structures and related organization. The new structure is designed to provide enhanced support and responsiveness to retailers and contractors and to foster greater alignment with distributors, which cover both commercial and residential markets. In addition, the Company believes this effort is consistent with its focus on improving its competitive positioning and profitability.

These streamlining efforts are expected to achieve annualized savings of $6 million to $7 million in SG&A expenses. In connection with these savings, the Company expects to incur one-time charges of $4 million to $5 million, with most of the expense occurring in the first half of 2017. The charges primarily relate to severance expenses.

Mr. Maier stated, “This more efficient go-to-market approach and cost reduction plan is an integral part of our transformational effort to improve profitability. We believe the streamlining of operations will allow us to better service customers and better align our cost structure with the current environment, in light of protracted market challenges.”

For earnings history and earnings-related data on Armstrong Flooring (AFI) click here.

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