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SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
Current Report
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (date of earliest event reported): October 3, 1996
Armstrong World Industries, Inc.
(Exact name of registrant as specified in its charter)
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Pennsylvania 1-2116 23-0366390
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification Number)
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313 West Liberty Street, P. O. Box 3001, Lancaster, Pennsylvania 17604
(Address of principal executive offices) (ZIP Code)
Registrant's telephone number, including area code: (717) 397-0611
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Item 5. Other Events
The registrant's press release dated October 3, 1996 is attached hereto
as Exhibit 99 and is incorporated herein by reference.
Exhibit No. Description Reference
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99 Press Release dated October 3, 1996 Filed herewith
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
ARMSTRONG WORLD INDUSTRIES, INC.
Dated: October 15, 1996 By: /s/ L. A. Pulkrabek
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L. A. Pulkrabek
Senior Vice President, Secretary and
General Counsel
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Exhibit No. Description Sequential Page No. or Reference
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99 Press Release Dated October 3, 1996 Filed herewith at page 5.
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ARMSTRONG REPORTS DISCOLORATION IMPACT
LANCASTER, PA., October 3, 1996--Armstrong World Industries announced today that
its third-quarter after-tax earnings will be adversely affected by approximately
$22 million or $0.53 per share due to costs associated with the discoloration of
a limited portion of its Residential Inlaid Color Sheet Flooring product lines.
As reported earlier, in July the company's early warning processes, including
information from retailers, indicated that a discoloration was occurring in a
limited number of inlaid product lines: Designer, Designer II, Fundamentals and
VIOS. The source of the discoloration was identified and traced to a raw
material used in certain of our production over a nine-month period potentially
affecting less than 4 percent of total flooring unit volume produced in the
United States or approximately 4.5 million square yards. Manufacturing
production was stopped for about ten days in August in order to replace the
problem raw material, and new product deliveries began through regular
distribution channels shortly thereafter. The discoloration problem is visual
only and there are no health, environmental or safety concerns, nor does the
discoloration impact the performance of these products.
The costs associated with the discoloration issue include approximately $20
million, or $13 million after tax, associated with the writedown to realizable
value of inventory on hand at Armstrong or to be returned from independent
wholesalers. Additionally, based on current and estimated future claims, the
company will establish a contingency reserve of $14 million, or $9 million after
tax, to cover the potential cost of removing and replacing discolored product
installed in consumers' homes. Armstrong will continue to monitor claims levels
on these products and may make further adjustments in the reserve based on
experience. Consumer claims for discoloration are being made through the
company's normal claims process. While some insurance and other recoveries may
be available, the amount and timing of these recoveries cannot be determined at
this time. The company's third-quarter earnings report is currently scheduled
for release on October 14.
