Armstrong World Industries declares special dividend, completes strategic review process

By Lisa Kerner

Charlotte, N.C., Feb. 29 - Armstrong World Industries, Inc.'s board of directors, having completed its strategic review of alternatives, concluded that Armstrong will continue to execute its strategic operating plan as a publicly traded company.

The board cited the continued deterioration in the U.S. residential housing market as well as tightening of the credit markets as factors in its decision.

Armstrong also announced that an estimated $500 million of capital is expected to be returned to its shareholders in 2008, according to a company news release.

The board has declared a special cash dividend of $4.50 per common share, or some $260 million, payable on March 31 to shareholders of record as of March 11.

Armstrong said the remaining $240 million is available to be returned to shareholders later in the year if the business performs as expected.

As previously reported, Armstrong retained Lazard Freres & Co. LLC and Weil, Gotshal & Manges LLP to assist in the strategic review process.

Armstrong World Industries is a Lancaster, Pa., manufacturer of floors, ceilings and cabinets.

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