Exhibit 99.1
NEWS RELEASE | 
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Carlisle Companies Reports a 30% Increase in Second Quarter Income from Continuing Operations and Increases Full Year Guidance
CHARLOTTE, NORTH CAROLINA, July 25, 2006… Carlisle Companies Incorporated (NYSE:CSL) reported income from continuing operations of $54.6 million, or $1.76 per diluted share, for the quarter ended June 30, 2006, an increase of 30% above $42.1 million, or $1.34 per diluted share, for the second quarter of 2005. Earnings before interest and income taxes (“EBIT”) for the second quarter of 2006 was $84.2 million or 12.2% expressed as a percent of net sales. EBIT for the second quarter of 2005 was $66.0 million or 11.1% expressed as a percent of sales.
Richmond McKinnish, Carlisle President and CEO, commented, “The second quarter of 2006 met our expectations. We continue to see strength in many of our end markets; therefore, we are increasing our guidance for income from continuing operations for the full year 2006 to the range of $5.25 to $5.45 per diluted share from the previous range of $5.00 to $5.20 per diluted share.”
Net sales of $692.7 million in the second quarter of 2006 were $101.1 million, or an increase of 17%, as compared to net sales of $591.6 million in the second quarter of 2005. Organic sales growth accounted for $84.1 million, or 83%, of the improvement over the prior-year quarter, primarily as a result of strong organic growth in the Construction Materials segment and the Diversified Components segment. The organic sales growth rate was 14.2% for the second quarter of 2006 as compared to an organic growth rate of 9.6% for the second quarter 2005. Acquisitions in the Diversified Components segments accounted for $13.4 million, or 13%, of the growth over the second quarter of 2005, while changes in foreign currency exchange rates contributed $3.6 million, or 4%.
Construction Materials: Net sales of $292.9 million in the second quarter of 2006 were 29% above $227.9 million of net sales in the second quarter of 2005 primarily related to higher volumes of TPO (thermoplastic polyolefin) membrane and insulation reflecting Carlisle’s expanded geographic reach within the U.S. and focus on total system sales. Second quarter 2006 EBIT of $46.6 million was 20% above second quarter 2005 EBIT of $38.8 million. Prior year results included pre-tax gains of $1.3 million on the sale of property and $1.3 million of insurance proceeds related to a fire at a small coatings and waterproofing plant that occurred in 2002. Segment EBIT for the second quarter of 2006 and 2005 included earnings related to the Company’s equity share of income at its European roofing joint venture, Icopal, of $0.7 million and $0.6 million, respectively.
Industrial Components: Net sales of $214.7 million for the three months ended June 30, 2006 represented a 3% increase over net sales of $209.2 million for the same period in 2005. The tire and wheel business increased revenues on higher commercial outdoor power equipment, ATV (all-terrain vehicles) and high speed trailer tire sales as well as increased sales to the replacement market. Improvement in the tire and wheel business was slightly offset by lower sales in the power transmission belt business driven by reduced volumes for the agricultural market. EBIT of $23.4 million in the second quarter of 2006 was 18% above EBIT of $19.8 million reported in the same quarter of 2005. Earnings in the current-year quarter included a $5.6 million gain resulting from the curtailment of certain retiree medical benefits and $1.5 million of proceeds related to certain legal actions initiated by the Company. Negatively impacting results in the second quarter of 2006 were charges of $1.3 million related to a lease termination and $1.2 million related to the impairment of certain assets at the closed Red Wing, MN facility. Earnings in the prior year included $3.6 million related to certain legal actions.
Diversified Components: Net sales of $185.1 million in the second quarter of 2006 were 20% higher than net sales of $154.5 million for the same period of 2005 while EBIT in the second quarter of 2006 of $21.5 million was 41% higher than EBIT of $15.3 million in the second quarter of 2005. Results for the current-year quarter were negatively impacted by pre-tax charges of $2.5 million related to an arbitration proceeding concerning the termination of a supply agreement in the Company’s high-performance wire and cable business. Strong demand in the specialty trailer business and the wire and cable business, as well as acquisitions in the two brake businesses accounted for a significant portion of the increase in net sales. The Company’s refrigerated truck body business also experienced favorable comparisons to the prior year, which was negatively impacted by a labor dispute in 2005.
Discontinued Operations
In the fourth quarter of 2005, the Company announced it was exiting the businesses of Carlisle Systems & Equipment which include Carlisle Process Systems and the Walker Group. On April 10, 2006, Carlisle announced it had signed a definitive agreement to sell Carlisle Process Systems to Tetra Pak, a division of the Tetra Laval Group, a private industrial group headquartered in Switzerland. The sale of the Carlisle Process Systems businesses is subject to regulatory approvals as well as other customary closing conditions. The Company is actively marketing the Walker Group businesses. The sale of Carlisle Process Systems and the Walker Group businesses are expected to be completed by December 31, 2006.
Income from discontinued operations, net of tax, in the second quarter of 2006 was $1.4 million as compared to losses from discontinued operations in the second quarter of 2005 of $7.4 million.
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Net Income
Net income for the second quarter ended June 30, 2006 of $56.0 million, or $1.80 per diluted share, was 61% higher than net income in the second quarter ended June 30, 2005 of $34.7 million, or $1.11 per diluted share. The increase in net income for the second quarter 2006 was due primarily to the improved income from continuing operations as well as the second quarter 2005 including the aforementioned losses from discontinued operations.
Cash Flow
Cash provided by continuing operations of $55.7 million for the six months ended June 30, 2006 was significantly stronger than $19.8 million provided in the first half of 2005 due primarily to increased operating income and a reduction in cash required to fund working capital levels. Cash used in investing activities was $46.9 million in 2006 compared to $46.1 million in 2005. Capital expenditures of $50.9 million in the first half of 2006 were comparable to capital expenditures of $50.7 million in the first six months of 2005 with the Construction Materials segment representing the majority of the expenditures for both periods. Cash used in financing activities of $15.1 million in the six months ended June 30, 2006 compared to cash provided by financing activities of $41.9 million in the first half of 2005. The year-over-year change in financing cash flow is due primarily to a reduction in short-term borrowings in 2006 on stronger cash flow from operating activities. Financing cash flows in 2005 included the use of $16.4 million to purchase 200,000 shares of common stock.
Backlog
Backlog from continuing operations at June 30, 2006 of $269.9 million was below the backlog of $295.4 million at March 31, 2006 and slightly higher than the backlog of $261.3 million at June 30, 2005. Increased backlog for the Construction Materials segment was more than offset by decreased backlog in the Industrial Components segment reflecting the seasonality of the lawn and garden market.
Conference Call and Webcast
The Company will discuss second quarter 2006 results on a conference call for investors on Tuesday, July 25, 2006 at 11:00 a.m. Eastern. The call may be accessed live at http://www.carlisle.com/investors/conference_call.html, or the taped call may be listened to shortly following the live call at the same website location until August 8, 2006. A PowerPoint presentation will also be available for viewing and/or printing at the same website location.
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Forward-Looking Statements
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations due to changes in global economic, business, competitive, market and regulatory factors. More detailed information about these factors is contained in the Company’s filings with the Securities and Exchange Commission. The Company undertakes no duty to update forward-looking statements.
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, foodservice, and data transmission industries.
CONTACT: | Carol P. Lowe |
| Vice President and Chief Financial Officer |
| Carlisle Companies Incorporated |
| (704) 501-1100 |
| http://www.carlisle.com |
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