Carlisle Companies 2Q Sales Fall 28%

Carlisle Companies Inc., Charlotte, NC, reported net sales from continuing operations of $618.5 million for the second quarter 2009, a 28% decline from the same period a year ago. Profit improved 2.2% to $55.5 million. Organic sales decreased 28% with sales down across all segments.

Year-to-date, sales were $1.12 billion, down 25% from the first half of 2008. Profit was $62.1 million, compared to a loss of $8.3 million for the same period a year ago.

The Construction Materials segment reported second quarter 2009 sales of $314.4 million, a decline of 29% for the same period in 2008. The decrease in sales was across all product lines and is consistent with declines in the overall construction industry.

Applied Technologies had second quarter sales of $103.1 million, down 20% from second quarter 2008. Operating income declined 34% to $8.8 million. Organic sales for the second quarter were down 25%, due primarily to softness in the foodservice business and lower demand in the cable and assembly business.

Second quarter Specialty Products sales declined 44% to $27.5 million, and operating income declined 92% to $0.7 million from $8.7 million for the same period in 2008. The decrease in second quarter sales and operating income was primarily attributable to weak sales in the construction and mining markets of the off-highway brake business.

For Transportation Products, second quarter 2009 sales declined 29% to $173.5 million. Operating income increased 59% to $33.5 million. While sales were down in all markets, the segment recorded a pre-tax gain of $24.5 million from insurance recoveries related to the fire at the Bowden, GA, tire and wheel facility. The gain was partially offset by plant consolidation costs of $8.5 million.

"We have an immediate opportunity to accelerate consolidating and transforming our tire and wheel business by taking advantage of our insurance recovery and current real estate market conditions to purchase a state-of-the-art manufacturing facility in Jackson, TN," said David A. Roberts, president and CEO. The new facility will allow Carlisle to consolidate three tire manufacturing facilities into a single, more centralized location.

The company will also continue consolidation in other sectors, closing a heavy-haul trailer manufacturing facility in Pennsylvania and an aerospace production facility in Kent, WA.

Carlisle is a diversified global manufacturing company serving the construction materials, commercial roofing, specialty tire and wheel, power transmission, heavy-duty brake and friction, heavy-haul truck trailer, refrigerated truck body, foodservice, aerospace, and test and measurement industries.