Carlisle Companies Inc. (NYSE:CSL), Charlotte, NC, reported net sales from continuing operations of $604.6 million for the quarter ended Sept. 30, 2009, a 27% decline from $832.5 million in the third quarter of 2008. Sales were down across all segments, with organic sales decreasing by 26% from the third quarter of the prior year.
The impact of foreign currency exchange rates on net sales was a reduction of less than 1% in the third quarter of 2009.
Profit from continuing operations declined 11% to $45 million in the third quarter 2009 compared with third quarter of 2008. 2009 profit was negatively impacted by lower sales volume as well as restructuring expenses related to previously announced plant consolidations. Profit was positively impacted by favorable raw material pricing, lower operating expenses and efficiencies gained through the Carlisle Operating System.
Carlisle has taken advantage of the current acquisition environment with its recent purchases of Jerrik and Electronic Cable Specialists in the Applied Technologies segment.
Segment Results
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 across all product lines and is consistent with declines in the overall construction industry.
Transportation Products: Third quarter 2009 net sales declined 37% to $129.2 million from $205.2 million, and operating income declined by 54% to $4.0 million from $8.7 million for the same period in 2008. Sales were down in all markets in the Transportation Products segment, with sales of trailers decreasing 64% from the prior year. Operating income was negatively impacted by the combination of the lower sales volume as well as $4.1 million of restructuring costs from previously announced plant consolidations. Operating income was positively impacted by cost reductions and lower raw material pricing.
Applied Technologies: Third quarter 2009 sales declined 19% to $105.8 million from $131.2 million, and operating income increased 3.9% to $13.2 million from $12.7 million for the same period in 2008. The largest sales declines were in the aerospace, test and measurement and core foodservice markets. Despite the decline in sales, operating margins improved from 9.7% in the third quarter 2008 to 12.5% in the current quarter. The improvement in operating margins was primarily due to cost reduction efforts implemented in late 2008 and early 2009 as well as higher selling prices and efficiencies gained through the Carlisle Operating System.
Specialty Products: Third quarter 2009 net sales declined 39% to $29.5 million from $48.0 million, and operating income declined to $0.9 million from $8.2 million for the same period in 2008. The decrease in third quarter sales and operating income was primarily attributable to weak sales in the agriculture and construction markets in the off-highway brake business as well as lower sales in the refrigerated truck body business.
