* Q4 adj EPS from cont. ops $0.22 vs est $0.27/shr

* Q4 revenue falls 8 pct

* FY2010 adj EPS $1.20-$1.50 vs est $1.80/shr

* Sees N. American commercial markets falling about 10 pct (Recasts, Adds details)

March 1 - Building products company Armstrong World Industries Inc (AWI.N) reported a lower-than-expected quarterly profit, hurt by lower sales volumes, and forecast 2010 profit below Wall Street expectations.

Armstrong World -- which makes flooring products, ceiling systems, and kitchen and bathroom cabinets -- said macroeconomic forecasts indicate a tough outlook for many key markets in 2010.

The company said declines in North American residential markets are estimated to be up to 5 percent, along with a drop in renovation activity. Armstrong World draws about 40 percent of its total sales from the North American residential market.

Sales of previously owned homes in the United States unexpectedly plunged in January, indicating that the housing market has yet to find stable ground. [ID:nN26246086]

The company said North American commercial markets are expected to decline about 10 percent.

In the commercial market, most of the company's revenue comes from four major segments of commercial building -- office, education, retail and healthcare.

Armstrong World, which competes with American Woodmark Corp (AMWD.O), Masco Corp (MAS.N) and Mohawk Industries (MHK.N), sees 2010 adjusted earnings of $1.20 to $1.50 per share.

It expects revenue of $2.65 billion to $2.85 billion for the period.

Analysts on average were expecting earnings of $1.80 per share, on revenue of $2.76 billion, according to Thomson Reuters I/B/E/S.

European markets are expected to decline at least 5 percent, the company said in a statement.


For the fourth quarter, net loss from continuing operations was $3.8 million, or 7 cents a share, compared with a net loss of $26.2 million, or 46 cents a share, a year ago.

On an adjusted basis, net income from continuing operations was 22 cents a share.

Net sales fell 8 percent to $653.0 million. Building products sales fell 13 percent to $260.0 million, while cabinets sales were down 10 percent.

Analysts on average were expecting earnings of 27 cents a share, on revenue of $654.8 million.

Armstrong World said declines in most commercial markets continued.

Shares of Armstrong closed at $36.82 Friday on the New York Stock Exchange. (Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Vinu Pilakkott)