Building material companies that supplied the commercial and residential real estate boom are taking a hit as the downturn drags on - with no bottom in sight - and warning of more pain to come.

Many have shifted into survival mode as commercial and residential construction has come to a standstill and consumers are putting off or reducing ambitions for that kitchen remodel. Weaker sales projections are helping prompt companies to slash staff, shutter plants and protect their balance sheets.

"Frankly, it's irrelevant what they earn in 2009," said Stifel Nicolaus analyst John Baugh. "Will they survive is the question, and are they around to participate in recovery?"

While few companies have outperformed in the crumbling economy, building material companies have taken a particularly hard hit, as many straddle more than one industry, supplying flooring, for instance, to both builders and consumers.

When detailing a fourth-quarter loss Thursday, floor-to-ceiling product maker Armstrong World Industries Inc. (AWI) said the economic downturn came with an "unanticipated savagery, sales collapse" during the quarter, adding this year will be even more challenging.

"Nearly every key residential and commercial market around the world is expected to decline significantly," Chairman and Chief Executive Michael D. Lockhart told investors, adding the downturn will be "deeper and longer than people think."

Armstrong, flooring giant Mohawk Industries Inc. (MHK) and Masco Corp. (MAS), whose lines include Behr paint and Delta faucets filling handyman chains, have each seen their shares plummet by more than 40% so far this year, with Masco plunging about 55%. Even shares of Sherwin-Williams Co. (SHW), the nation's top paint seller by sales,have been shaved by nearly a quarter since January.

Of course, these companies aren't alone as few operators have been spared. Businesses counting on home builders have seen sales evaporate as the sector struggles to survive its worst downturn in decades. With few buyers to be had, home starts have fallen to record lows. Meanwhile, to cut costs, builders have demanded cheaper prices from suppliers and distributors.

Those counting on consumers have also felt pain from the housing bust. With fewer homes being sold - and less remodeling going on - little spending is happening. Key retail partners have responded by keeping inventory lean and shuttering underperforming stores.

The commercial sector has been battered in the last year, stressed as mounting unemployment forces companies and governments to rethink renovations, growth or relocations. With the credit markets frozen, little construction is taking place.

That market's "unprecedented declines," will exacerbate pressure on this year's results, Armstrong said, predicting its ceilings market will decline 15% this year.

In the last few years, it has closed two floor plants, with plans to shutter two more this year, and minimized discretionary spending such as travel.

The story isn't much better at competitor Mohawk, the world's largest flooring company by revenue with brands including Aladdin and Karastan. Nearly half its revenue comes from repair/remodel projects, while 29% comes from commercial flooring projects, according to Credit Suisse analyst Dan Oppenheim. New home construction comes in at 11%. The company, which also reported a loss late last month, said sales at its namesake segment tumbled 17%, from a year earlier, dragged down by both commercial and residential sectors, while customer traffic dropped "significantly" in flooring retail stores in the fourth quarter.

"Floor covering industry demand is anemic," said Stifel Nicolaus' Baugh. "All categories are under pressure."

Mohawk has responded with drastic cutbacks. Since last year, it has sliced nearly 6,000 full-time employees and reduced workweek levels. Gone are nine manufacturing sites, two plants and 1.25 million square feet of warehousing. It is also "going after some lower margin business that when business conditions were good, we would have left that for other people," Jeffrey S. Lorberbaum, chairman and chief executive officer, said in the earnings conference call.

Such responses are similar to those taken by products giant Masco, which has seen its fortunes fall along with the residential market. It expects sales to decline in the mid-to-high-teens percent range.

At the end of last year, about 35% of its sales came from new construction, while it also supplies to retail chains Home Depot Inc. (HD) and Lowe's Cos. (LOW). Sales to "key retail customers" saw double digit declines in each of last year's quarters, with the year ending down 12%.

Masco has closed 17 manufacturing facilities since late 2006. It has cut 23,000 employees and said it will recommend a dividend cut to its board.

Sherwin-Williams, which has 3,300 branded paint stores nationwide, recorded a 50% drop in fourth-quarter net income and said the global "rapid deterioration" will continue at least through the first half. The company, whose professional offerings range from pavement marking to coating office buildings with a protective sealant, expects annual net sales to decline in the low-to-mid single digits versus 2008.

Responses have included raised prices, consolidating sales territories, reducing overtime and closing or idling seven manufacturing and distribution sites. It has no plans to reduce training or its research and development spending, and continues to hire and open new stores.

"Each time that we thought that things couldn't get any worse, in fact they did," said Christopher M. Connor, chairman and chief executive officer, in the earnings call. "The catalyst for recovery is simply nowhere in sight."

"These," he said, quoting Thomas Paine's 1776 words, "are the times that try men's souls."

-By Kelly Nolan and Dawn Wotapka, Dow Jones Newswires; 201-938-4049; kelly.nolan@dowjones.com