LISA SCHEID | Business Trends Reporter
After record-breaking first quarter financials, Manor Township-based Armstrong World Industries is forecasting a strong year stemming from its recent $95 million purchase of an architectural products company.
“We expect that this acquisition will be a positive contributor to all of our key metrics in 2024, CEO Vic Grizzle told investors this week.
This news is important as Armstrong World Industries’ results are closely tied to the health of Lancaster County’s economy. With $1.3 billion in revenue in 2023, the company has approximately 3,100 employees and a manufacturing network of 16 facilities, including a plant in East Donegal Township.
First quarter profits for the ceiling and wall materials maker rose 27% to $59.9 million, up from $47.3 million for the same period in 2023.
Net sales of $326.3 million were up 5% compared to the same period last year, the company reported among its record-setting financials.
Chief Finance Officer Chris Calzaretta said that the company’s 33.9% margin of earnings before taxes marked Armstrong's best first quarter margin performance since the first quarter of 2020, prior to any significant pandemic-related impacts.
Based on the acquisition of Utah-headquartered 3form, Armstrong updated its sales forecast for 2024.
“Including this acquisition, we now expect total company net sales growth in the 8% to 11% range, an increase from our prior guidance of 3% to 6% growth,” Calzaretta told investors.
READ: Armstrong World Industries posts $1.295 billion in sales for 2023
READ: Armstrong World Industries acquires stake in Seattle ceiling company
READ: High buying 476-acre Manor Township property from Armstrong
Victor Grizzle
The acquisition
3form LLC makes sustainably crafted architectural resins for ceiling and wall applications and has annual sales of $96 million. The company offers signature products such as architectural-grade translucent resin, architectural glass, PET felt, and LightArt, a one-of-a-kind lighting brand. Grizzle noted that Armstrong World did not have translucent materials in its portfolio prior to the acquisition.
“It is such a complementary product line to our existing product line with very little overlap, but it’s highly specified by the same architects and industrial designers that we’re working with and really opens up new spaces and new applications for these materials for Armstrong,” Grizzle said.
With more than 400 employees, 3form has facilities in Kernersville, North Carolina, and Seattle, Washington.
The 3form acquisition is strategically similar to Armstrong World’s taking a 20% stake in a Seattle-based ceiling system designer and maker Overcast Innovations earlier this year, executives explained to industry analysts on this week.
CHAD UMBLE | Staff Writer
