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Press Release: Carlisle Companies Reports Fourth Quarter Diluted Earnings per Share of $1.57

· 02/04/2021 16:05
-- Revenues of $75.8 million, up 5.4% (+2.8% organic) year-over-year, reflected improved demand in Construction and Agricultural off-highway vehicle end markets. -- Operating income was $0.8 million. Operating margin of 1.1% was impacted by unfavorable mix, higher restructuring costs and wage inflation, partially offset by savings from COS. -- Items affecting comparability were costs of $0.9 million versus costs of $0.5 million in the fourth quarter of 2019.-- Revenues of $72.9 million, down 8.3% (-16.1% organic) year-over-year, reflected volume declines, particularly in the General Industrial markets, partially offset by acquisitions and price. -- Operating income was $3.3 million. Operating margin of 4.5% reflected lower volumes, higher restructuring costs and wage and raw material inflation, partially offset by price, savings from COS and lower SG&A. -- Items affecting comparability were costs of $1.7 million versus benefits of $0.6 million in the fourth quarter of 2019.-- Revenues of $154.6 million, down 35.4% (-40.3% organic) year-over-year, were negatively impacted by a significant decline in orders from Aerospace customers, partially offset by acquisitions. -- Operating loss was $13.3 million. Operating margin of -8.6%, was affected by lower volumes, wage and raw material inflation, partially offset by savings from COS and lower operating expenses. -- Items affecting comparability were costs of $9.5 million versus costs of $6.9 million in the fourth quarter of 2019.-- Revenues of $760.8 million, up 0.9% (+0.6% organic) year-over-year, were driven by improving U.S. commercial roofing demand and polyurethanes. -- Operating income was $155.0 million, up 21.5% year-over-year. Operating margin of 20.4%, a 350 basis point improvement, was driven by favorable raw material pricing, savings from COS, lower SG&A and increased volume, partially offset by price and wage inflation. -- Items affecting comparability were costs of $0.1 million versus benefits of $0.4 million in the fourth quarter of 2019.-- Reported consolidated fourth quarter revenue of $1.1 billion, with CCM quarterly sales turning positive on a year-over-year basis -- CCM reported record fourth quarter operating margin of 20.4% led by higher year-over-year sales volumes, continued benefits from pricing resolve and raw material cost containment -- Delivered $697 million of operating cash flow and $601 million of free cash flow in 2020, similar levels to 2019, despite lower sales year-over-year -- Share repurchases continued in the fourth quarter, totaling 3 million shares for $382 million for the full yearSCOTTSDALE, Ariz.--(BUSINESS WIRE)--February 04, 2021--

Carlisle Companies Reports Fourth Quarter Diluted Earnings per Share of $1.57

Carlisle Companies Incorporated (NYSE:CSL) today announced its fourth quarter 2020 financial results.

Comments from Chris Koch, Chairman, President and Chief Executive Officer

"As we close 2020, we are reminded of the lives lost due to COVID-19 around the world and of the pandemic's significant impact on Carlisle's employees, suppliers and our customers. I am heartened that Carlisle employees persevered and rallied around each other and their communities, all the while continuing to demonstrate the value of the Carlisle Experience to our customers. While the pandemic made 2020 a unique and challenging year for businesses across the globe, I am extremely proud of how Carlisle's employees prioritized safety and civility in their personal interactions. We must continue to navigate this pandemic responsibly and with balance, ensuring that the health and safety of our employees is a top priority. However, we must also meet customers' expectations and continue to give our employees the opportunity to provide for their families and support the communities in which they live.

2020 demonstrated yet again the exceptional and sustainable earnings power of the Carlisle business model, our proven ability to weather significant downturns and our laser focus on our long-term strategic objectives. CCM once again drove the majority of positives in Carlisle's fourth quarter results, supported by strong re-roofing trends, continued price discipline and superb management of raw material costs. CCM also made significant strides in integrating and improving our newer platforms of Architectural Metals and Polyurethanes. CCM's sustainable cash generating abilities, combined with the Carlisle Experience that has been developed over many years and recently elevated by our best-in-class, dedicated and accomplished global team, provide Carlisle with the financial and strategic flexibility that supports our conviction in achieving Vision 2025.

While CCM generated most of our earnings in 2020, our other business platforms made important improvements despite being impacted significantly in a challenging year. CIT delivered results in line with our expectations in a year of record declines in the aerospace industry by focusing on delivering new products to increase our content per plane, rightsizing its manufacturing footprint, further integrating its Medical platform and continuing to invest in our Test & Measurement and Sensors businesses. CFT exceeded expectations in the fourth quarter, leveraging a focus on execution while introducing exciting, innovative new products. Finally, CBF enters 2021 looking to benefit from our recent restructuring activities and with solid end-market tailwinds in core markets of Construction, Mining and Agriculture, further reinforced by an improved outlook for dealer inventory replenishment after reductions in the last several years.

As we build on the momentum in our core markets entering 2021, we also see significant opportunities to drive revenue and earnings growth as we accelerate through the recovery. We continue to invest in CCM Europe evidenced by new regional leadership, expansion of our world-class facility in Waltershausen, Germany and several new product introductions for 2021. Within our Architectural Metals platform, we have set plans in motion for three new locations in underserved regions around the U.S. while making progress consolidating our teams to drive commercial synergies and operational efficiencies. Our Polyurethane business is delivering sustainable growth by providing products and solutions with unmatched energy efficiency in both residential and commercial applications. Additionally, the Polyurethane team, collaborating with CFT engineering, has introduced an industry-first integrated spray foam insulation equipment solution (IntelliSpray) which optimizes productivity and material savings when used with CCM's complete portfolio of open and closed cell products.

Our ESG efforts are gaining momentum. We continue to increase the diversity of both senior leadership and our Board of Directors. In 2020, we recycled and repurposed over 75 million pounds of used automotive tires, diverting them from landfills. We also repurposed over 6,000 tons of scrap EPDM back into the production process. We continue to optimize our facilities, finishing 2020 with over 20% of our global manufacturing footprint re-lamped for LED lighting and motion controls, and 18 of our 89 plants ISO14001 certified. Finally, innovative CCM products help to enable the sustainable building envelope, reducing energy costs and minimizing GHG emissions.

We remain balanced in our capital deployment approach. We are increasing capital expenditures considerably in 2021 to drive future growth. Continuing to manage an active M&A pipeline, we are focused on synergistic businesses that complement our highest returning businesses. Finally, we will remain active in returning capital to shareholders - notably, we raised our dividend in 2020 for the 44th consecutive year, and returned $495 million to shareholders in the form of share repurchases and dividends.

Vision 2025 gave us clear direction and consistency of mission during the tumultuous year of 2020, and will continue to guide our efforts as we accelerate into the recovery in 2021."

Fourth Quarter 2020

Revenue of $1.06 billion decreased 7.0% from $1.14 billion in the fourth quarter of 2019. Organic revenue declined 9.0% (organic revenue defined as revenue excluding acquired revenues within the last 12 months and the impact of changes in foreign exchange rates versus the U.S. Dollar). Acquired revenues contributed a total of 1.4% in the quarter. Changes in foreign exchange rates had a positive 0.6% impact on revenues.

Operating income of $111.8 million decreased 20.9% from the fourth quarter of 2019. Operating income performance was impacted primarily by volume declines, acquisitions and wage inflation, partially offset by lower raw material costs, lower operating expenses and contributions from COS.

Fourth Quarter 2020 Segment Highlights

Carlisle Construction Materials (CCM)

Carlisle Interconnect Technologies (CIT)

Carlisle Fluid Technologies (CFT)

Carlisle Brake & Friction (CBF)

Cash Flow

Free cash flow (defined as cash provided by operating activities less capital expenditures, and comprised of continuing and discontinued operations) was $601.2 million for the twelve months ended December, 31 2020, a decrease of $14.0 million versus the prior year. Our priorities for the use of cash are to invest in growth and performance improvement opportunities for our existing businesses through capital expenditures, complete strategic acquisitions that meet return criteria and return value to shareholders through dividend payments and share repurchases.

During the three months ended December 31, 2020, we redeployed our free cash flow towards $40.7 million in share repurchases and $27.9 million in dividends paid. As of December 31, 2020, we had $902.2 million of cash and $1.0 billion of availability under our revolving credit facility.

2020 Full Year

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February 04, 2021 16:05 ET (21:05 GMT)