Carlisle Companies reports Q3 figures: industrial belt sales fall

Charlotte, North Carolina -- Carlisle Companies Inc. has reported income from continuing operations of $38.3 million for the quarter ended September 30, 2005, compared to $32.9 million for the quarter ended September 30, 2004.

Income from continuing operations for the third quarter 2005 included a $3.0 million benefit for the reduction in income tax liabilities as a result of final settlement of the Company's 2002 and 2003 federal tax filings and settlement of certain state tax filings from 1997 - 1999.

In a statement the company said, "Industrial Components reported net sales of $164.5 million for the period, down 8% from net sales of $178.1 million for the same period of 2004. Increased tire and wheel sales for the ATV market were more than offset by lower sales for the high speed, styled wheels and consumer lawn and garden markets. Sales in the power transmission belt business were 10% lower than third quarter 2004 due primarily to reduced demand in the lawn and garden and agricultural markets.

"Earnings before interest and income taxes ("EBIT") of $5.1 million in the third quarter of 2005 were 54% lower than $11.2 million recorded in the third quarter of 2004. Lower demand resulting from extended shutdowns and model changeovers by the Company's lawn and garden OE customers has been the largest contributor to the segment's disappointing results. Increased freight, energy costs, and rising raw material costs have also contributed to the negative earnings comparison. The Company continues to incur costs associated with the plant closure of its union belt facility in Red Wing, MN and start-up costs for increased production at the belt operations in Fort Scott, KS and Shenzhen, China.