Carlisle reports rise in sales for third quarter 2010

Charlotte, North Carolina - Carlisle Companies Inc, a diversified global manufacturer with activites in the construction and speciality tyre and wheel sectors, has reported net sales from continuing operations of $665.9 million (Euro480 million) for the third quarter of 2010, a 10-percent rise on sales in the same period last year.

Organic sales increased by 7.9 percent from the same quarter in the prior year, the firm said in a 26 Oct news release, pointing out that acquisitions, including those of Jerrik and Electronic Cable Specialists (ECS) and Japan Power Brake, added $14.0 million in sales, or 2.3 percent, in the third quarter of 2010.

Income from continuing operations was marginally lower, at $46.8 million, or $0.75 per diluted share, in the third quarter 2010, compared with $47.1 million, or $0.76 per diluted share, in the third quarter of 2009. This years Q3 income was improved by a reduction in the company's effective tax rate, higher sales volumes, efficiencies from the Carlisle Operating System and selling price increases.

Offsetting these positive impacts were higher raw material costs primarily, in the Construction Materials and Engineered Transportation Solutions segments, Carlisle's statement added.

“During the third quarter of 2010, all of our business segments achieved organic growth, contributing to an overall organic growth rate of 7.9 percent, said David Roberts, chairman, president and chief executive officer, in the Carlisle statement. EBIT (Earnings Before Interest and Income Taxes) margins of 10 percent in the third quarter of 2010 reflect continued ... pricing actions taken by our businesses to address rising raw material costs, he added.

“The consolidation of our US tyre-manufacturing operations into our Jackson, Tennessee, facility is expected to be substantially complete by the end of 2010 and will provide a foundation for margin growth in the Engineered Transportation Solutions segment in 2011, the Carlisle statement continued. During the third quarter of 2010, we incurred costs of $3.4 million related to company-wide consolidation and plant closures ... we estimate an additional $6 million in related costs for the fourth quarter of 2010, it added.

"We expect to achieve company-wide savings from our consolidation efforts of approximately $7 million in 2010, with $3 million anticipated in the fourth quarter, and an additional $14 million in 2011,” the statement added.

The firm's Engineered Transportation Solutions unit reported third quarter 2010 net sales of $186 million, up by 17 percent over net sales in the same prior year period, with the Japan Power Brake acquisition contributing $2.9 million to this figure. EBIT of $8.4 million for the segment also increased, by 11 percent over the same period last year, Carlisle added.

Overall, the segment achieved double-digit organic sales growth in all of its major product lines, most notably 48 percent in its industrial brake and friction product line and 28 percent within its power sports product line, ATV. During the third quarter of 2010, EBIT margin remained relatively flat at 4.5% when compared to 4.8% for the third quarter of 2009.

EBIT was reduced by higher costs for natural and synthetic rubber and steel, which were significantly offset by increased selling prices during the third quarter. Plant restructuring expenses in the third quarter of 2010 of $3.3 million compared to restructuring expenses of $3.4 million for the same period in 2009.

Further details are available from: http://www.carlisle.com