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Carlisle Companies Inc. Reports Operating Results (10-Q)

October 27, 2009 | About:
10qk

10qk

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Carlisle Companies Inc. (CSL) filed Quarterly Report for the period ended 2009-09-30.

Carlisle Companies Incorporated manufactures and distributes a wide variety of products across a broad range of industries including among others roofing construction trucking automotive foodservice industrial equipment lawn and garden and aircraft manufacturing. They market their products both as a component supplier to original equipment manufacturers as well as directly to end users. Carlisle Companies Inc. has a market cap of $2.01 billion; its shares were traded at around $32.87 with a P/E ratio of 16.9 and P/S ratio of 0.7. The dividend yield of Carlisle Companies Inc. stocks is 2%. Carlisle Companies Inc. had an annual average earning growth of 6.5% over the past 10 years.

Highlight of Business Operations:

Income from continuing operations, net of tax was $45.0 million, or $0.73 per diluted share, for the three months ended September 30, 2009 and represented an 11% decline compared to income from continuing operations of $50.6 million, or $0.83 per diluted share for the same period in 2008. Income from continuing operations, net of tax was $110.7 million, or $1.79 per diluted share, for the nine months ended September 30, 2009, compared to income from continuing operations of $135.7 million, or $2.21 per diluted share for the same period in 2008.

Income from continuing operations, net of tax was $45.0 million, or $0.73 per diluted share, for the three months ended September 30, 2009, down 11% compared to income from continuing operations of $50.6 million, or $0.83 per diluted share for the same period in 2008. Income from continuing operations, net of tax was $110.7 million, or $1.79 per diluted share, for the nine months ended September 30, 2009, compared to income from continuing operations of $135.7 million, or $2.21 per diluted share for the same period in 2008. Current year results included an after-tax gain of $16.8 million, or $0.27 per share, related to insurance recoveries, partially offset by after-tax expense of $15.2 million, or $0.25 per diluted share, related to restructuring expenses.

Net income of $46.6 million, or $0.75 per diluted share, for the quarter ended September 30, 2009 compared to net income of $50.4 million, or $0.82 per diluted share, for the quarter ended September 30, 2008. Net income of $108.7 million, or $1.76 per diluted share, for the nine months ended September 30, 2009 compared to a net income of $42.1 million, or $0.69 per diluted share, for the nine months ended September 30, 2008. Results for the first nine months of 2008 were negatively impacted by an $89.5 million, or $1.47 per diluted share, after-tax impairment charge of assets related to discontinued operations.

Construction Materials Third quarter 2009 net sales declined 24% to $340.1 million from $448.1 million, and operating income was $60.3 million compared to $60.8 million for the same period in 2008. The decrease in sales was primarily attributable to a 22% reduction in the volume of products sold across all product lines, and a 1.5% decrease in selling prices. Net sales of $862.2 million for the nine months ended September 30, 2009 decreased 26% as compared with $1.17 billion for the same period in 2008. A 28% decline in the volume of products sold was slightly offset by a 1.9% increase in selling prices.

The Company recorded $4.1 million of expenses in the third quarter of 2009 related to these consolidation projects. Of that amount $2.2 million related to employee termination, $1.7 million related to other costs primarily associated with the relocation of equipment, and $0.2 million related to asset impairment charges. In the first nine months of 2009, the Company recorded $16.3 million of expenses, including $9.7 million in asset impairment charges, $3.1 million in employee termination costs, and $3.5 million of other costs consisting primarily of contract termination and relocation expenses.

Applied Technologies Third quarter 2009 net sales declined 19% to $105.8 million from $131.2 million in the third quarter of 2008. The largest sales declines were in the aerospace, test and measurement and core foodservice markets. Net sales of $311.5 million for the nine months ended September 30, 2009 decreased 11% as compared with $350.7 million for the same period in 2008. Organic sales were down 19% in the first nine months of 2009 reflecting general economic conditions, as well as production delays in the aerospace market. The acquisitions of Dinex, Carlyle and Jerrik contributed $37.4 million of net sales in the current year.

Read the The complete ReportCSL is in the portfolios of Richard Pzena of Pzena Investment Management LLC.

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