Carlisle Companies Reports Record Second Quarter Diluted EPS of $2.65, a 42% Increase from Prior Year
SCOTTSDALE, ARIZONA, July 23, 2019 - Carlisle Companies Incorporated (NYSE:CSL) today announced its financial results for the three month period ended June 30, 2019.
Second quarter revenue increased 6.4% year-over-year to a record $1.3 billion
Operating income reached a record $207.2 million, an increase of 29.7% year-over-year
Repurchased 550,000 shares, totaling $75 million
CCM revenue increased 10.4% (4.7% organic) year-over-year despite above average rainfall in parts of North America
Second Quarter 2019
Revenue of $1.31 billion increased 6.4% from $1.24 billion in the second quarter of 2019. Organic revenue grew 2.3% (organic revenue defined as revenue excluding acquired revenues within the last twelve months and the impact of changes in foreign exchange rates versus the U.S. Dollar). Acquired revenues contributed a total of 4.7% in the quarter. Changes in foreign exchange rates had a negative (0.6%) impact on revenues.
Operating income of $207.2 million was up 29.7% from the second quarter of 2018. Operating income performance was driven by price/cost realization, lower restructuring, higher sales volume and contributions from the Carlisle Operating System (COS), partially offset by wage inflation and acquisition costs.
In addition to the factors driving operating income improvement, diluted EPS from continuing operations benefited from a lower tax rate and lower share count. Diluted EPS for the quarter included $0.06 of restructuring, facility rationalization, and acquisition related costs, and $0.09 of discrete tax benefits.
Chris Koch, President and Chief Executive Officer, said, “We are pleased with Carlisle's record second quarter sales and diluted EPS results. These results demonstrate our continued progress towards our Vision 2025 goals of: $8 billion in revenues, 20% operating income, and 15% ROIC.
Second quarter results were driven by: strong execution, continued solid demand at CCM and CIT, price discipline across all four segments, and efficiencies gained from COS. We continue to see a healthy backdrop in demand for both new construction and replacement products across the building envelope within CCM, while robust commercial aircraft build rates continue at CIT. Combined with price/cost dynamics and efficiencies gained from prior year restructuring efforts, we leveraged these positives into solid incremental margins. Additionally in the second quarter, CBF continued to execute well on its margin expansion goals driven by increased efficiencies at its Medina, OH facility.
During the second quarter, global macro uncertainties, including unresolved trade negotiations, Brexit, a general slowing of industrial capital spending, and severe weather in North America challenged the global Carlisle team. Despite these challenges, the team continued to drive sales and operating income improvements under Vision 2025 initiatives.
We also continued to work an active M&A pipeline, broadening our scope and scale of product offerings as demonstrated by our second quarter acquisition of MicroConnex, which adds key sensor and and micro-flex circuit technology within CIT's Medical Technologies platform, and the acquisitions of Hosco Fittings, Integrated Dispense Solutions, and Shinhang to establish a Sealants and Adhesives platform within CFT.
The following information was filed by Carlisle Companies Inc (CSL) on Tuesday, July 23, 2019 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.