CSL - Earnings call transcript Q1 2018 | Carlisle Companies Incorporated

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Operator

Good afternoon. My name is Tim and I'll be your conference operator today. At this time, I'd like to welcome everyone to the Carlisle Companies Incorporated First Quarter Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarkets, there will be a question-and-answer session. you. Thank Instructions] [Operator Mr. and Carlisle President begin you your conference. CEO Koch, Companies, of may Chris

Christian Koch

Good welcome afternoon Companies Tim. you, Thank and XXXX call. first to conference quarter Carlisle the

GAAP before U.S. review with our reports we the an with On this measures considering investment making entitled review sheet On XXXX is the measures. today's in discuss our stock, in me performance our Chief will file Carlisle the Officer. Financial with and of Please Exchange under I reviewing first now XXXX of are decision. appendix investing the Chief These the the these Accounting New Stock Officer; forward-looking investment provided which financial along afternoon to Bob our to with associated an balance York reports phone should symbol risks call, cash and Ball, is Titus presentation our carefully, Roche, Those and performance, non-GAAP the quarter outlook. explain slide this our presentation. Bob in Reconciliations of traded segment use read are will statements the Non-GAAP on statements SEC two flow. CSL. of our

years. the the growth; closing shareholders; market in after we developing Vision talent. met Turning those above execution we seek customers X.X%, increased and rollout generated to XXX and by $XXX processes; anniversary significant repurchased to in our $X XX% operations among for has shares, have initiatives, reinforced through of in we acquisitions; organic of with pursuing to has unveiling. $XX exceptional all key synergistic XXXX in XXXX, culture XXXX, our we quarter of XXXX. invest With of our drive our by our XX% The slide growth, million business R&D three, we million attracting, scale to to to delivered organic capital to portfolio The these second the further XXXX of progress revenue, since In continued quarter, continue enthusiasm operating organic out of and investors, our efficiency dividends, retaining billion in and made income, Vision next paid Vision drive consistent Products first cornerstone we leverage COS into our achieve our to ROIC. outlined XXXth of and by return businesses million. and approximately launching entered commitment seek with of century build strategies Carlisle its in core of employees Vision In XXXX, our XX% optimized FoodService the completing Carlisle $XXX spend divestiture growth has the

first a to resulting organic record over our XXXX million, slide XXth and three. consecutive first increase quarter experienced strong in Turning revenues of $XXX first of growth, the growth. XX% of year-over-year Carlisle sales In XXXX, the quarter of quarter quarter

Our $X.XX. operating X.X% resulting quarter to of million, first in EPS grew in $XX income the

costs, pricing series pressures price of our measures and taking quarter. strong, CCM Timing our products materials leadership announced with and labor our levels Our current and that similar we customers, at impacting offset the material across a freight high availability, reflected impacted raw significantly earnings environment, our disproportionately businesses. value all philosophy first businesses. market to continued the our quarter quarter wages and while of are a across to our instituted increasing raw on of by lagged are proactively XXXX. Consistent increases fourth pressure inflationary to we performance, have Carlisle, price dynamics. Across actions was by delivering of challenging inflationary these

actions savings from taken to continue increasing across drive operational We facility rationalization global to these will cost are our contribute they in face efficiencies, restructuring inflationary actions, savings continue completed. businesses System and will businesses Operating positively anticipate addition to pricing our an XXXX and will In and Carlisle as the the environment.

currently CIT; now Shenzhen, However, profitability in second a the major underway of deliver in will actions we Tulsa, portfolio two related and out, strategic investments and to heavy more as and China at to Medina, focused XXXX Ohio Oklahoma XXXX. move restructuring, $XX complete. substantially the significant realignment move from close to CBF. expect is are perspective XXXX Dongguan, simplified in the will gains in the pricing half to only actions and totaling be After projects restructuring China there lifting taken at significant XXXX the million the

$XX gain friendly the and synergies stated facility We years. in The foam expect achievements in on on this forecast the conditions entered of proposition of approximately and levels. from business of solution, quarter Accella restructuring States and Europe, The to winter acceptance to applied harsh markets quarter. our in I'll market Construction construction XXXX growth. fourth United and strong XXXX remains the deliver continue polyurethane of spray XXXX the half focus liquid commercial business acquisition roofing value Materials the and our to efficient Despite CCM's acquisition single-digit divisional our growth be total again rationalization to costs on Accella customers. continue via over delivered the three to now million strengthening high track environmentally

platform. synergistic for new this look acquisitions to to polyurethane add to continue We

Germany. to $XX XXXX, Bob late CCM Eastern the site SatCom expect at completed is of ramp communications on better aircraft all and Hamburg, underway now Interiors and will million in drive Germany. the We to recently Additionally, products. connectivity which and of strong productivity continues due I fliers million to to surrounding improve accelerate Example construction were the with European and increased reach exceptional to desire enhancements. for new attended enthusiasm passenger over invested in $XXX and million and see growing Show impressed we capabilities business to satellite Aircraft the supply expectations our this Aerospace the the demand the $XX in quality facility, capture infancy. growth. capital CIT facility Waltershausen, saw reinforced and CIT XXXX in the XXXX our XXXX. and customers show connectivity with when at is continues we we that experience. the it this new in evolve, our SatCom The of is in confirmed to grow uniquely of positioned In-flight to core sales demand. increasing confidence to and in in continue continue to Examples This will and Middle believe its only ability only technology increase our

The Dongguan, factory China XXX project grow end our the of be move Additionally, completed business Med China our and pipeline by robust year. active OEMs leading Shenzhen, will Medical to Tech projects. Global to is continues with with Technology the over

along We industrial by our our CFT's of efforts revenue a decision footprint with complete efforts $X.X related begun operational expect to million positive the in consolidation and reflecting of in markets this are latter and approximately months exit we the benefits in factory the have production increases delivering largely engineering first expand CFT XXXX. move capabilities to savings consolidations, XXXX to quarter. of towards these the low-margin start offset to transportation see revenue general growth XXXX. will significantly in reflected

of organic quarter. approximately XX% months with in as on are first were they We and the income few mid-single-digit new especially improving the operating improvement focus growth about the by We leadership, performance driving also excited CFT's profitability. specifically, pleased

of products complement the synergistic of the to these with expect sales We new and pursuit launch efforts acquisitions.

first markets And consecutive off-highway fifth commodity their continue to total accelerating see year improve. expect core experienced were and of over continue and sales of realize Sales bookings were $XX from end CBF's the is and all this we substantial important, be volumes quarter, Oklahoma The five-year move. to annualized over XX% equally customers up Ohio savings segment by quarter. revenue consolidation in the to XX%. million recovery as mining in agriculture The plant Tulsa, CBF For markets. to up to completed growth track from $XX on sales to to downturn construction, the million Medina,

sales our operating upward and XXXX. segment balance continue actions accelerate, now CBF's discuss cash products margins and the I'll our performance will review, provide expect Bob? Bob outlook quarter review further After from we First effect pricing Bob's and about detail flow. to new their trend. sheet take for

Robert Roche

sales the Please on presentation. turn Thank the of bridge Chris. you, slide five to

sales in quarter. mentioned record pleased first our growth construction, revenues. Chris recovery business, CCM core opening SatCom remarks, agriculture growth the Aerospace contributed X.X% at strengthening with our Organic at positive XX.X% a his impact, continued we strength equipment and and in markets in had CBF. Acquisitions of ramp As quarter are by and mining CIT, driven

Foreign exchange revenue FASB recognition of of the X.X%. had impact impact adoption had a positive the X.X%, of standard new a and positive

and COS X.X%. points in a drove finally, in Net negative slide six, operating XXX of income positive margin point basis basis XXX had basis point XX costs, improvement, impact. our XXX quarter acquisitions on a impact. to the point basis had revenues quarter, had rising to material Turning bridge negative raw XXX largely driven impact points margin basis a by CCM, the decreased

but more Now, growth. performance revenues anticipating positive contributed increases. positive our year-over-year we price Drexel We markets let's increased Accella, mid-single-digit the At by price seven XX.X% The are in driven to experienced in previously slight realization results turn detail. quarter, to review acquisitions CCM segment in growth. slide Arbo, meaningful to first by core CCM, Metals to XX.X% quarter the the and organic and announced related

medical improvement. savings. in with turn Organic review approximately delivered were million the growth this. with adoption leverage Aerospace are by results, CIT's grew primarily of contributed point in two-thirds we operating initiatives material in accelerating. $XX COS offsets slide improving a the volume XXX while the SatCom expect our and to the the revenues headwinds. offset market the million XX.X% higher the headwinds Higher continues ramp approximately CIT on COS inflation results. of and cost will growth of eight and strong to strong the to test XX.X% due $XX of logistics year. positively material another delivering a recognition contributing anticipate standard. volumes versus year-over-year our freight implemented Accella combined operating including cost expenses. price the are raw increases. in have of million margin cost for delivered expectations that $X in business. them offset and for half Additionally, some the transportation both from than material second this sales the net face raw we quarter in effect environment, were of In million track, CIT's quarter. the million more revenue operating XX.X% rising impacted also we margin of CIT FASB to basis cost the achieved quarter seeing fully markets second quarter, in Please freight income savings and to Operating We measurement by and revenue growth XX.X% offset actions will of new $XX.X the $XX decline organic surcharges approximately of raw of in represented CCM

of the the and approximately We spend to expect by million China the project. of the will balance year complete end on XXXX Dongguan, Shenzhen this $X and for consolidation

U.S. revenues general and Turning transportation the million CFT's low-margin to to were slide exit industrial markets decision of by growth excluding related flat. our and the nine, factory approximately to China in Strong revenue offset $X.X in FX the was consolidations.

XX% of achieved Solid and savings approximately price was operating realization COS. from income by improvement

end to markets, XX, reflected related the mining, reflecting favorable especially The quarter, increase vehicle CBF the quarter X.X%, were and pound. of XX%. and up of which sales fifth of construction, sales in an increasing achieved markets outstanding now a Turning primarily consecutive increase agriculture, the key foreign of and all slide exchange which off-highway over euro XX.X%, to growth XX.X% recovery continued in results the was in organic

income levels, manufacturing included sales, which million, Medina, our in into improving related the CBF's operating recovery of expenses $X.X the to $X Ohio historical Tulsa, continued Oklahoma towards consolidation facility. to our With the million facility progress

on expect rationalization, items end slide project. divestiture-related segment. are of we $XX and $XX complete to realize of On savings acquisition restructuring, and million by to the annualized this We have from other facility this XX, track million XXXX to consolidation by detail of provided

in were quarter $X.X included million segments. First charges all operating for income

to continue moves. Dongguan $XX we approximately and For million of million cost Tulsa to full XXXX, the driven by $XX expect year

revolving Turning of March on cash hand our to of facility. slide under $XXX XX, XXst, we and as $X had billion million availability credit of

Our sheet remains strong. balance

was debt debt As XXst, and X.X our of ratio to net was EBITDA capital was ratio EBITDA March interest times, our XX%, net ratio times. our to XX.X to

and million organic to Chris. CBF. prior year-over-year compared back to now And to in $XX reduction the CIT, increase capital CCM, the our positive slide XX, year. I'll $X.X million $X.X expenditures quarter turn related cash due remarks, flow at over initiatives free the was This a to Turning negative an was with call largely million in to in of those

Christian Koch

as XX outlook. to Thanks turn Bob. Please we updated our XXXX discuss slide

XXXX driven overall, healthy construction consolidated XX% For acquisitions, raising our the high price and outlook offset for around to from to growth. cost we low mid are teens by U.S. the CCM, segment, price discussed commercial Carlisle as being a including forecast contributions revenue our the we'll to the at in maintain expect we market By increases to now previously range. CCM grow a focused freight surcharges CCM inflationary leader remains result, of the execution and discipline pressures. and XXXX on

expect the and on revenue converting to integration efficiencies seeking the throughout content to a remain the per XXXX. our growth exceed accelerate. strong acquisitions delivers percent In of within mid-single-digit synergies, high expected Tech continue factories, continue envelope. operational At to the segment, CFT, SatCom growth expand drive to Aerospace Aerospace in continue our quality projects, continuing Med ramp pipeline by We the strong will Tech building Accella deploy in we driving CIT focused market, XX%, also to for ensure driven platform and range growth COS the to We revenue and businesses. now aircraft expect for into a new the seek to we higher and Med organization,

we expansion from focus grow the and markets. margins the including acquisitions and adjacencies, driven seeking introductions, team into CBF, by foundation of last in growth sites expect this Fluid build throughout organization, increased As in transition our to growth, Technologies COS the core years, over we implementing XXXX, platform, strong on optimizing out continue the delivering building At to new now consolidating two product revenues platform. to CBF's close accelerating leadership on organic core to we mid-teens, our eight

past customers prices, regions, be is We years. to million. at effects OEM is Depreciation our to growth approximately $XX related expense key in key be launched the $XXX and two commodity solid are the sales Corporate seeing initiatives expense of rising continued to all improvement in amortization and million. expected expected

the full capital approximately to For will year, $XXX expenditures would $XXX be million. we expect million

lower to to $XX $XX XXX%, Products. are income of FoodService of Depending FoodService a our we investment be expect towards XXXX from conversion the the the timing free sale effect sale interest to be We cash Products, derived anticipating range. excluding on of of approximately and expense the end net million million

invest XXXX. rate we to tax approximately And our repurchases. and dividends to acquisitions, and to Our share be return XX% balance through strategic expected with Carlisle's our sheet XX% flow strong in is cash in fund generation, shareholders capital will continue to and businesses,

As markets strong well-positioned our to businesses, inflationary we are in improving are XXXX environment. advantage we take unfold, that global an fundamentals facing recognizing to and of continues increasingly while

on performance ready positive now first on the XXXX traction early to we deliver achieved questions. goals, outlook. -- to we're against This With expect excited we fourth for our and the formal record Tim, upon the build XXXX our have are results comments in the our and momentum concludes XXXX. quarter

Operator

from Your the Instructions] with Buckingham Frohnapple of comes [Operator question Neil line first Research.

open. line Your is

Neil Frohnapple

guys. Thanks Great.

So, for a pieces EBIT CCM lot moving the of outlook.

update you outlook about headwind. could an it to to expect had you as I you first, for material your relates the that So, the million talked full previously raw impact think year? provide $XX would EBIT to

as helpful what if be a update, would that you're can there, an So, you projecting provide point. starting

Robert Roche

we the by be of in remaining the in price believe $XX We are $XX the back million talked offset this Yes, is to quarter. Neil still our half we thought up be on Bob. the million the last And $XX million. $XX continue nothing's -- first We million year. will ended with on changed outlook. that the about would I call Yes, seeing with

Neil Frohnapple

Okay.

my So, I follow-up. guess, that was

the initial price So, mean pricing X% you could from And implemented I recently quantify any guess, results thoughts was more about talk I more on mentioned March? then, QX, slight positive? the increase announced that price in You positive the in increase. anticipating importantly,

is Is should be million and $XX we the anticipation So, the will there? that surcharges? that? any realized So, with pricing it commentary how read that then freight the

Robert Roche

it. thinking we're Yes, that's how exactly about

Neil Frohnapple

Okay.

from the $XX material for actions be pricing -- the the negative million headwind a should So, that headwinds, only year. freight, it including and the raw full

Robert Roche

talked consistent we with that's last what quarter. and Yes about Yes.

Neil Frohnapple

Okay, much. Thanks the queue. I'll great. in so Yes, back hop

Robert Roche

problem. All Thanks. right. No

Operator

Your of the next Shmois question Research. Longbow line comes Garik from with

line open. is Your

Garik Shmois

you. Thank

follow-up some to wanted of on Just Neil's questions.

spring, Or on Just be have clear offsetting to this offset just given implemented inflation. confidence earlier the pricing, in raw any does to are hikes enough in you material necessary? the in inflation, your assume price already additional you this what market

to want clear. Just be

Christian Koch

we increase. the and to increases XX%, some X% second, TPO, two price ranging effective began the accessories, and EPDM, had we was of had up March TPO Xst. in were X% had then that every from up almost the Yes. May accessories We we increase had to our X% ISO in And We ISO, that's Xst.

year What we now. what anticipate that's increases. see through So, happening would based upon price we those be the

Garik Shmois

Got it.

some Okay, CCM The outlook, the could growth revenue was you color provide what specifically? in helpful. that driving on increase that's

Robert Roche

that's Yes, increase. Board just across a the largely normal

As have on first through getting better on and bit more after base confidence the -- we business quarter. a being we see what's the now Accella in going

Garik Shmois

million accelerating of pretty the rest then remaining that second And increase that the the Is XQ? through then or And off the we through number just run great. the XQ consistent in half ramps how quarter. rate good how SatCom would You for think be it Okay, of a quarters? to on starts the increase about use in three year? guidance, the should the the had also $XX first just on

Christian Koch

and out fourth rising the much with -- It second third a leveling you quarter. stronger will be I in then think, quarters and will see pretty

Garik Shmois

Okay.

Christian Koch

--at third rate. the quarter

Garik Shmois

very you Got much. it. Thank

Christian Koch

bet. You

Operator

Humphrey. comes SunTrust of Your the Brady Charlie Robinson from line question with next

Your line open. is

Charles Brady

Evening guys. Hey, thanks.

Christian Koch

thanks. Yes, Evening.

Charles Brady

granular the you maybe parts we're on U.S. just than came about given impact. the weather weather they geography. growth what asking So, little Or more On offset little for. were bit looking you of to? I'm how -- if better a bit were do wonder you CCM, thought in maybe organic stronger the the certain -- in seeing can than there, more I we that were there a than talk particularly so quarter, going you were how

Christian Koch

in to weather. it between the We that have you difficult and script roofing eight was days did think we six and we lost Northeast on Yes, Midwest. might comment anywhere -- the

somewhat with demand. When talks kind pretty I at might growth look is lines, at rest product that strong our say, any you of across regionally, out. consistent have our across I throughout to would been it And said, solid a there pretty very area smaller stood lines. being That all mean, growth grew than that don't think lines the consistent, business. much PVC and of I One it just rate, product exception So, the business. it product in strong but the higher was exceptional the was

traction add way? I that Bob, we every to like in think any had would in to good strong region. you

Robert Roche

No, X% total. roofing to were to only commercial that's X% I say then and markets was our slides, waterproofing, international in up up mean our Board, nicely Chris. U.S. bring markets, we up I it our think specialty right, in across other the

Charles Brady

on guess the multiples -- line where to sight assume, of the, I space science clearly, to Kind little acquisitions amping business the Thanks. on tend more you Okay. what Helpful. just just of that CIT up. in are is bit a obviously, of speak really that CIT be to market, Can the acquisition I that doing your kind you life and of would part to is targeted. guys And pipeline, higher.

Christian Koch

They -- are range fair of are We size. pipeline. we seeing amount seeing a We're in deals. good

higher those at our the You of to also be business, are looking tend we're the assets. that than for the average parts other good and there's pretty some correct deal multiples competition

Tech think But in fierce. that and to we've quite the will got disciplined, very for that business. to there we then prospects out pricing, think helpful nicely that out be I competition will the So, be building pretty be and we want Med that do CIT

there situation, the of that's but lack kind of opportunities. no is So,

Charles Brady

Okay. Thanks.

I'll and a there. hope in. margin your you friction, Just back pretty that one business? full more for performance for On have strong and margin expectation for year brake What's me contribution

Christian Koch

the giving would call, as specific, we we more kicks really some we only would really not pricing had. say that say in, gain But a we're expect Charlie, we're I we would we're march would year but I our anything I today, the as dramatic, would said increase would what Hey, seeing in measured that those to to start say as levels be efficiencies. over historical

Charles Brady

it. Appreciate Thanks.

Operator

from comes question Giannakouros the of next with Jim line Oppenheimer. Your

open. is line Your

Jim Giannakouros

good Hi, afternoon.

Christian Koch

Jim. Hey

Robert Roche

Jim. Hey

Jim Giannakouros

eight consolidated you've sites. CFT,

part in You restructuring, be line should seems have -- end more term? you thinking can we How incremental beyond. guess, the of maybe what intermediate you, question sight once is what of sustain growth in of the that you're confident is And margin markets can really and restructuring kind I second of expect it end say, progression like to the about you that. behind XXXX that

Christian Koch

would the tackle margin you first. one like Let's Bob, to--?

Robert Roche

Yes, sure.

we mentioned up before, up a on we long-term, think where as back the see march about -- the year. getting year closer for to I last from the I not as talked year, were there march a we were where last levels, historical to XX% year, steady from but up we to we going up throughout exit margins,

Christian Koch

look to a Asia-Pacific regions, contributor strong still we when -- to Jim, region then, you And look at expect if at growth. we be the

to another be that sales we that When area continuing has we be sales and that at and specifically the are have excellent year, business, view auto a technology strong, We pump product good a Asia. we growth move as recovery introduced the see that we been to new that's receptivity start years look for business And look we refinish to lines, our and forward. we like growing. some seeing would finishing growth always when the U.S., think there the a good strong a that's still as to couple the We will ago, would we in had of be in we focus.

the for space. And and feel the ago technologies our shops, of general the adhesives there in also opportunity M/S company powder those but body specifically We years a We looking and adhesives an is couple We in and differentiation we're sealants, at also bought the technologies applications. then like in and on automotive sealants industrial. see That's good products the foam the a and throughout market. entering to a provide years starting market. presence look other there our good traction there we been manufacturers some an then with and we're with market have we solution potentially for new combination the we with would for Accella, think opportunity to to now

Jim Giannakouros

was, more during TPO conversations my heavily tougher actually and that Thank than or apologize pricing? bit seeing you. to and insulation, competed. And but cut the pricing my Where and having getting it in are a a I in That's Is EPDM that the insulation, helpful. it. is better misunderstood back channel, you firmer that accurate? And did highlight impression you bit going just CCM they're expected are where EPDM, I mean because by the I quarter, you TPO if if and missed I traction? just is you

Christian Koch

our product firmer a the those have tend I characteristics, two March bit been I in be and primarily some ISO the And results. traction That Xst lines. think, on increases EPDM, some there and had of two the we price TPO the pricing saw month the there. traction just in in on we the started have had general, market March we saw think, there accessories we -- -- we on always given pricing. good to

two increase increase the it's pointed X% and on on but X% I'd across of if TPO had on you March to say Board, most the actions, Xst March the quarter. the effect So, ISO the Xst

Jim Giannakouros

And space. general more guys rational hey, the we -- getting you the seeing across to? mean, rational that just as mean, competitor than more disciplined do with that just more follow-up, in you input better manufacturers most this appreciation reflective a from you a and Board behavior or Are market cost it's I and that of are acceptance so attribute a are inflation I know set? hit that, you competitors? Are what

Christian Koch

of both, a it's Jim. combination think I

here, I they think a were we've this they XXXX, at still quarter got XXXX. closer in price talking XXXX. the as look actually in to been on but then for had were we of the bit while. long-term, and of positive decrease tended And -- price we we've end of declines, a about that first the If little XXXX we seeing back to

say, inflationary to there rational is then short-term becoming competitor pressures these set, So, -- added, an let's their have think sure, they cost just as more and a for resolve increasing, I'm I everyone. ever increased

think I two. That trend of long-term the it's then a pressures. on and competitors inflationary more convergence on rational So, short-term the those trend

Jim Giannakouros

back executing go job Good I'll in there. on Thanks. queue.

Operator

from of comes question next line Your with the Hocevar Kevin Northcoast Research.

is line Your open.

Kevin Hocevar

Hey, good evening everybody.

Christian Koch

Good evening.

Kevin Hocevar

was Did just accretive wanted Wondering believe price the And raw you quarter. hear when so faced would you guidance I $X.XX this that in first that of could headwind I you it I comment. Bob, Accella I if mentioned that's see that million And EBIT the still think if quarter? a to it be your $X acquired expectation. the versus in Accella right? what was initial from actual the contribution year,

Robert Roche

a Yes, in -- in that. to was true Accella couple you'll for the loss was see loss and when out, there comes million there Q our a it that was dollar due quarter, couple a

that Now the in that Accella million saw And clearly everyone results, wasn't it pressure year-over-year it what quarter. $X expected. the MDI the due than in wasn't was we largely because our to was but higher

into fold, we Accella as market spot them is the buying just in If business the buying still in spot you on get contract. they still our recall, or -- where base were the market least at buys

our longer fall We're but make $X $X.XX, pressure the So, in a we we're in up looking little to track $X.XX. the quarter, the synergies is can with but term more to bit year, that this throughout there. now pressure short for we believe $X.XX we related we going million be. to expected MDI year, in going what of And back we're get that the accretive difference think looking next range caused to the the into the first where some of on probably to

Kevin Hocevar

think seeing actions are particularly I here what MDI seeing are a mentioned you of But lot Because of then of raised are you you force we've of was well? that talked a And and you. you probably businesses taking type about actions majeures pricing pricing term. in as out near I CCM. a lot traction? any across Got specifically? that And here, increase there And the taking bunch here price know

chance could those can type that you update coming expect Are of Or down would down? that help you be any that helpful? dynamics online? on Or to you those out? So, some come it give seeing do come us

Christian Koch

MDI in quarter expectation core I relatively perhaps touch on, But well-documented, our is the was will year capacity in we've pretty should the business. even Accella decline for stability, second. a the Bob pricing. and that some will we the see be in as for with the Yes, here benign increases moves price think seen MDI on CCM

Kevin Hocevar

And pricing in then you. the Accella? actions Got

Robert Roche

Yes, the with I took that rest those the a increases. better couple like first we of well mean, quarter first season construction CCM, in get the -- quarter. when better pricing X% quarter seeing markets. the traction businesses those in and increase in construction some in of actions a season, our business across you we're you're better see you're But in when of we first did the some able in low to get as in But

Kevin Hocevar

Got you.

the Okay. price the And two for maybe volume, On CCM, ones. volume I between missed it. from and breakout and that? price What quick was X.X%

Robert Roche

said. seeing We're price, dollars. was it couple some positive was hundred low thousand as price we but relatively a The

Kevin Hocevar

a $XXX the million finally, repurchases. share And looks count essentially touch like you. down share spent got The flattish, it on share was repurchase, Okay, then on just sequentially. you

see maybe little you if late second in down And just share a Wonder you for in there. have step quarter? if give wondering can sense here the that. count. Were share there the quarter we'll Just repurchases color a

Robert Roche

Yes, do the to expect we it to continue see decline throughout year.

the it. in, in we purchases you As not Obviously, quarter. do can't early the come it did as do

have late, we the Our we earnings process was when started. so didn't

a and So, all of pushed little the decline. share quarter earnings, out second which count after that were third repurchases realizing the into

Kevin Hocevar

Makes sense.

Okay. much. Thanks so

Operator

the line BMO. Tiss Joel comes Your from question of next with

open. Your line is

Joel Tiss

Hey guys. How it is going?

Christian Koch

evening. Good

Joel Tiss

integrating that vertically of about share you profile that, talk you and be that to difference? a enough don't integration there's into that little changes kind vertical have industry? bit -- a able bit Just not Huntsman make market they that to a enough of CCM? wondered, enough little Or the of parts think is can of structurally chance kind there Is -- a

Christian Koch

Yes, question we'll to good happens. it's and see what have a

seeing this initial chemicals demand it that for it's to think I this and look think and at the they've their done happening a that they're stage, space in with understands market move we dynamics this, purely at getting who's upstream points think the good someone source there. into if increasing good some work. what's We signs you

reduction a Huntsman, from We any helps the is volume think that it and space good out, and expectations a I perspective, going a have -- They So, is to think we be also space reinforces in shareholders think, in. be as consolidation this rational have the well. probably that pretty they in to and competitor.

in the major like So, business our Huntsman good hope having participating will bring market. is discipline a it that

Joel Tiss

in -- part in the And quarter, of decline was business, quarter? Or of was finished? then in CBF, first still next, of was was is the the happened that part first that in the what that kind Aerospace that

Christian Koch

in business to before, purchasing coming Aerospace half it really quarter It become that there. the story as and decline And a then legacy but continue in the and year. -- in such generally it now pattern, not the around that first the the that's to spikes, the up second most it's when impact was aircraft a business we Joel, bit, the get we've as is a great small do said little used will first it's quarter of of of diminishing part actually be. as

Joel Tiss

much. very you Thank Okay.

Christian Koch

bet. You

Operator

Burke Riley from B. Liam of FBR. line Your comes next with question the

open. line Your is

Liam Burke

afternoon afternoon Chris, good Bob. good Hey

Christian Koch

Good afternoon Liam.

Liam Burke

color on you how give strength doing? some can geographically, Chris, performance but about lines, mean Europe I CCM's us different been product across has in talked Europe? you

Christian Koch

Interiors the but architects outreach to -- had is lot They It's received, it's flat to a of Show. we're over Europe Bob share. with action bit mentioned it market EPDM doing management Aircraft there were was at just positive very well Most increase. it I they're pretty some quarter. with a with over out were of also and product Europe have a there. in They're building there. different pleased a the taking. little the contractors. CCM small to owners, of We relatively team was FX. I due We and

think Waltershausen produce confidence we go. of they're get are where the the the as a taking market construction going. So, conversion to that going results. to in to well can help have we them got obviously, actions And We've facility should show lot as that

Liam Burke

on programs the you in-house front in new there acquisition talked can through aviation being any that medical? Are medical. be CIT, expensive in the either on programs developed about And CIT or Okay.

Christian Koch

at Absolutely. medical. aerospace length within the and new talk programs the We could about

just As bit. medical -- for touch we I'll spend a on

the that As organization to with and new opportunities the are with CIT that existing specified that in further we be and then and as teams certified to John on are look The to the exposing the see things products on FAA talk the for aerospace and into more major be or organic from us the came and is time. Berlin take that's is can generate years. the that out growth get those are we working substantial LHi And that. these those our and OEMs projects them developing -- FDA we products finding there, opportunity team extensive. -- the XXX those us the work process now get coming at about why And

Liam Burke

Chris. you, Thank Great.

Operator

Capital. line Your next Marc of question with Gratus the comes Heilweil from

open. is line Your

Marc Heilweil

speaking, but four Med to these the well. next and four difficult for know years, so years? are acquisitions -- how out be have acquisitions, new, important of you've I three generally over know contrasting years? and But Thank the Vision happened how could what's to pace three Tech of with don't grasp idea quantify, some the do this bolt-on to you. Aerospace, and or as you of I'm expect three XXXX you maybe -- is the to I a I last give to singled four similar maybe last

Christian Koch

Liam, those we just the like we growth because a with great ran that XXXX we ROIC as years, be we'd developing over and in $XXX with feel million, that, talked strong do is think working to where an opportunity we of feel and products pace the taking XX bolt-on long-term. acquisitions we growth them And last that that really we're most of have Well, about to on that products wanted Vision acquisitions. addition we organic the perspective that added to What do where in growth business some CIT with to strong the that we we're our be OEs up best from we our dimension provides added to and suite. We said synergistic. was bolt-on portfolio over did to from million we key that now a was that $XXX that

looking at the COS the can are to to sales bolt-on be it's acquisitions once at Carlisle, those earnings future to manufacturing we'll be leverage integrated. that more for able technology So, we some networks or acquisitions bolt-on whether that extract from or going competency be have they're

So, those synergies Does just think want acquisitions a bolt-on where acquisitions, existing to and we on have really I to that is your with one businesses. that to it's help? comment good our point

Marc Heilweil

Thank does. very much. It you

Christian Koch

welcome. You're

Operator

Robinson Humphrey. comes SunTrust Your next Instructions] of Charles the from [Operator Brady with line question

Your open. line is

Charles Brady

on I MDI guys go hit question ahead. you have you but it. guys pricing, No, had

Thanks. I'm So, good.

Christian Koch

Charlie. Thanks

Robert Roche

Charles. Thanks

Operator

time. turn There presenters. to are the I'll call this at no the further questions back over

Christian Koch

our we much, in Thank speaking and call. XXXX thank great your with look and concludes night. This our for questions, good Carlisle. their quarter very continued thanks call. you at And interest Well, you, earnings Tim. the We next everybody to forward first earnings participation,

Operator

for This concludes Thank you joining. call. conference today's

may disconnect. You now

Carlisle Companies (CSL) 24 Apr 182018 Q1 Earnings call transcript