More than 300 Manufacturing Workers to Face Layoffs
Leading global flooring company Armstrong Flooring Inc has announced that it is closing two of its wood flooring manufacturing plants after posting disappointing quarterly earnings.
Lancaster, Pennsylvania-based Armstrong Flooring is closing one plant in Jackson, Tennessee and another plant in Vicksburg, Mississippi. The plants will be shuttered by end of the fourth quarter of this year, and will collectively result in more than 300 layoffs.
The Jackson plant has about 215 employees, and the Vicksburg plant has 93 employees. Following the closure of these two wood flooring plants, Armstrong will be left with just six wood flooring plants in the country, including one in Oneida, Tennessee, and the remaining in five other states.
Following the two closures, the company will have 12 plants in the United States. Armstrong also has three international plants, including one in Australia and two in China.
Both of Armstrong Flooring’s major business segments—namely, resilient flooring and wood flooring—are facing a decline in sales. In fact, Armstrong’s wood flooring business reported an operating loss in the latest quarter.
The plant closures will help the company cut costs in order to save its bottom-line numbers from further slipping into the red zone. Armstrong expects to save about $8.0 million to $10.0 million in pre-tax annual costs from the closure of the plants.
The flooring company reported a staggering double-digit year-over-year drop in its net profits in the latest quarter. Likewise, its sales revenue in the second quarter of this year also saw a significant dip from the same period a year ago. This results were not much different in the previous quarter, when the company announced that it would cut about 40 jobs.
Nonetheless, the flooring company is now investing in vinyl flooring and scaling back its wood flooring business. Armstrong recently acquired the vinyl composition tile (VCT) business of another flooring giant, Mannington Mills Inc., to up its game in the vinyl flooring category.
Armstrong Flooring is a publicly traded company that sells premium wood and vinyl flooring to residential and commercial customers in the United States and abroad. The company employs a global workforce of roughly 3,500.
“Armstrong Flooring posts 22.1% drop in Q2 net profits,” Lancaster Online, August 7, 2017.
“Armstrong Flooring Completes the Acquisition of the VCT Business of Mannington Mills,” Business Wire, June 12, 2017.
“About Us,” Armstrong Flooring Inc, last accessed August 7, 2017.