Armstrong World Industries, Inc.: Company Profile and SWOT Analysis by ICDResearch

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									Armstrong World Industries, Inc.

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Armstrong World Industries, Inc.                                             Financial Snapshot

                                                                             Operating Performance
Fast Facts
                                   P. O. Box 3001, Lancaster, 17604,United   The company reported revenues of US$2,766.40
Headquarters Address
                                   States of America                         million during 2010, with a CARC of -5.21% during
                                                                             2006–2010. Its revenue declined at an annual rate of
Telephone                          + 1 717 3970611
                                                                             0.49% over the previous fiscal year. In 2010, the
                                                                             company recorded an operating margin of 2.93%, as
Fax                                + 1 717 3966133                           against 3.26% in 2009.

Website                            www.armstrong.com
                                                                             Revenue and Margins
Ticker Symbol, Stock Exchange      AWI, New York Stock Exchange

Number of Employees                9,800

Fiscal Year End                    December

Revenue (in US$ million)           2,766.40




SWOT Analysis

Strengths                          Weaknesses                                Return on Equity

Diversified geographic presence    High debt to equity ratio                 The company recorded a return on equity (ROE) of
                                                                             1.01% for 2010, as compared to its peers, Forbo
Strong market position in North                                              Holding AG (Ticker: FORN), Mohawk Industries, Inc.
                                   Weakness financial performance            (Ticker: MHK) and USG Corporation (Ticker: USG),
America
                                                                             which recorded ROEs of 22.38%, 5.57% and -65.43%
Wide business portfolio                                                      respectively. The company reported an operating
                                                                             margin of 2.93% in 2010.
Opportunities                      Threats
                                                                             Return on Equity
Demand for building materials      Foreign exchange risk

Increasing flooring market:        Raw material price fluctuations

Recovering economy




                                                                             Liquidity Position

                                                                             The company reported a current ratio of 2.67 in 2010,
                                                                             as compared to its peers, Forbo Holding AG, Mohawk
                                                                             Industries, Inc. and USG Corporation, which recorded
                                                                             current ratios of 1.86, 2.14 and 2.72 respectively. As
                                                                             of December 2010, the company recorded cash and
                                                                             short-term investments of worth US$315.80 million,
                                                                             against US$10.30 million current debt. The company
                                                                             reported a debt to equity ratio of 0.80 in 2010 as
                                                                             compared to its peers, Forbo Holding AG, Mohawk
                                                                             Industries, Inc. and USG Corporation, which recorded
                                                                             debt to equity ratios of 0.09, 0.51 and 3.73
                                                                             respectively.




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Armstrong World Industries, Inc. - SWOT Profile                                                                      Page 1
Armstrong World Industries, Inc.

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TABLE OF CONTENTS

1     Business Analysis ................................................................................................................................... 5
    1.1     Company Overview .................................................................................................................................................5
    1.2     Business Description ...............................................................................................................................................5
    1.3     Major Products and Services ...................................................................................................................................6
    1.4     Key Financial Performance Indicators .....................................................................................................................7
      1.4.1        Revenue and Operating Profit .........................................................................................................................7
      1.4.2        Asset, Liabilities and Capex ............................................................................................................................8
      1.4.3        Operational Efficiency ......................................................................................................................................9
      1.4.4        Solvency ........................................................................................................................................................10
      1.4.5        Valuation ........................................................................................................................................................11
    1.5     Competitive Benchmarking ....................................................................................................................................12
      1.5.1        Efficiency .......................................................................................................................................................13
      1.5.2        Capital Expenditure .......................................................................................................................................14
      1.5.3        Turnover – Inventory and Asset ....................................................................................................................15
      1.5.4        Liquidity ...........................................................................................................................................
								
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