Charlotte, North Carolina -- Carlisle Companies Inc. said it will sell its power transmission belt and on-highway brake businesses, and took an $89.5 million (Euro 56.5 million) after-tax charge on its first quarter financial results related to that decision.
The belting business, based in Springfield, Missouri, makes belts, pulleys and related components for customers in the industrial, snowmobile and ATV markets. It operates plants in Springfield, Fort Scott, Kansas, and Shenzhen, China, and employs 900, according to the company.
The brake business operates two factories in Indiana and one in China. Together, the power transmission and brake businesses posted sales of about $200 million last year, the firm said.
David Roberts, Carlisle chairman, president and CEO, said the company expects to net more than $100 million in cash from the divestiture within the next 12 months.
Carlisle reported a net loss of $62.8 million for the quarter ended March 31, while sales grew 13 percent to $708.3 million. Higher raw material costs and productivity problems in the tire and wheel business caused operating income to fall 13.7 percent to $44.1 million.
The company said it is implementing additional cost reductions and price increases across most products to help offset rising raw materials costs.
From Rubber & Plastics News (A Crain publication)
Press release from Carlisle