Armstrong World Industries Inc AWI
Q1 2013 Earnings Call Transcript

Transcript Call Date 04/29/2013

Operator: Good day, ladies and gentlemen, and welcome to the First Quarter 2013 Armstrong World Industries Incorporated Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will facilitate a question-and-answer session. As a reminder, this conference is being recorded for replay purposes.

I would now like to turn the call over to Mr. Tom Waters, Vice President of Treasury and Investor Relations. You may begin.

Thomas J. Waters - VP, Treasury, and IR: Thank you, Francis. Good afternoon and welcome. Please note that members of the media have been invited to listen to this call and the call is being broadcast live on our website at With me this afternoon are Matt Espe, our President and CEO; Tom Mangas, our CFO; Frank Ready, the CEO of our Worldwide Flooring Business; and Vic Grizzle, CEO of our Worldwide Ceiling Business.

Hopefully, you have seen our press release this morning and both the release and the presentation Tom Mangas will reference during this call are posted on our website in the Investor Relations section.

Keeping with SEC requirements, I advise that during this call we will be making forward-looking statements that involve risks and uncertainties. Actual outcomes may differ materially from those expected or implied. For a detailed discussion of the risks and uncertainties that may affect Armstrong, please review our SEC filings including the 10-Q filed this morning.

Forward-looking statements speak only as of the date they are made. We undertake no obligation to update any forward-looking statement beyond what is required by applicable securities laws. In addition, our discussion of operating performance will include non-GAAP financial measures within the meaning of SEC Regulation G. A reconciliation of these measures with the most directly comparable GAAP measures is included in the press release and in the appendix of the presentation. Both are available on our website.

With that, I will turn the call over to Matt.

Matthew J. Espe - CEO: Thanks Tom. Good afternoon, everyone, and thank you for participating in our call today. The first quarter of 2013 unfolded largely as expected with the exception of demand for Wood Flooring which was greater than we anticipated. We experienced continued commercial softness in North America, Western Europe and Australia. Emerging markets for the most part remained strong, but with choppy shipment activity impacted by large projects and distributor inventory adjustments. The U.S. residential market continues to recover with particular strength in new home construction. We are starting to see some signs of life in the remodel area, but existing homeowners are still cautious on big-ticket purchases.

I'm pleased to announce that first quarter also marked the opening of two of our new emerging markets plants with the Chinese homogeneous flooring plant and mineral fiber ceilings plant beginning shipments in March. These plants were built safely, on time and on budget. The teams did a great job with these projects and I want to commend their efforts.

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