Carlisle Companies Reports Second Quarter Diluted Earnings per Share of $1.36
SCOTTSDALE, ARIZONA, July 21, 2020 - Carlisle Companies Incorporated (NYSE:CSL) today announced its second quarter 2020 financial results.
•Despite an extremely challenging second quarter, Vision 2025 goals remain intact
•Reported EPS of $1.36 includes $0.25 of costs attributable to restructuring, M&A and COVID-19 related plant closures and absences
•CCM delivered 18.7% operating income margin overcoming an approximately 20% decline in sales
•Solid performance in CIT-Medical partially offset expected weakness in CIT-Aerospace business
•Balance sheet remains strong, with $738 million in cash and untapped revolver of $1 billion
Comments from Chris Koch, Chairman, President and Chief Executive Officer
"First and foremost, let me reflect how very proud I am of Carlisle's global team and the perseverance and determination they have displayed throughout this ongoing pandemic. Carlisle's employees have rallied around each other, our customers and our communities by supporting critical infrastructure, continuing to operate our factories and distribution centers all the while adhering to rigorous global health and safety guidelines, and remaining active and positive contributors to their local communities. Overall infections at Carlisle have remained low thanks to diligent adherence to safety guidelines across our operations. However, it saddens all of us at Carlisle as we reflect on the three members of the Carlisle family we lost this quarter to the virus: Maria Camacho, Roy Powell and Gilberto Chavarria Saquil. Their loss is a harsh reminder to us of the every day realities this pandemic has created. Our sincere condolences go out to their families as they deal with their grief.
Turning to our second quarter financial results, our performance was led by a resilient CCM. While the quarter began with April's volumes down in excess of 30%, we saw strong recovery in shipments through May and June, and we continue to benefit from the overall resumption of construction activity in both the U.S. and Europe. CCM's operating income margins of 18.7% during the quarter validate Carlisle's position in the market, the importance of the Carlisle Experience and the efficiency with which our team at CCM is operating, especially in these difficult times. As has been publically reported, many U.S. roofing industry participants reacted to COVID-19's sharp impact on second quarter demand with destocking, significant cost cutting, and, in some cases, plant closures in an effort to conserve cash. Needless to say, these actions created a significant opportunity for CCM as we remained committed to supplying our contractor customers and distributors relying on higher production and inventory levels to ensure uninterrupted service. We believe the actions taken at CCM prior to and during the pandemic have solidified its place as the premium provider of Building Envelope solutions. Another notable positive was the performance of CCM's new platforms in Architectural Metal and Polyurethane. Both of these new additions performed very well in the quarter. Lastly, we continue to be steadfast in our commitment to price discipline and now expect a net price/raw material year-over-year benefit at CCM of approximately $60 million in 2020.
At CIT, we, like many others, were taken aback by the record global decline in aerospace production and the accompanying ripple effects through the supply chain. The brutal reality is that this crisis has devastated many aerospace participants. Our ongoing actions to restructure and rightsize our manufacturing footprint over the past few years, combined with accelerated restructuring taken in 2020, have positioned us to maintain profitability even as demand in the aerospace industry reset materially in the second quarter. We are maintaining our core competencies while taking these necessary actions, adapting to the near-term demand decline. We do, however, see some positive signs in the aerospace markets. While passenger travel dropped over 90% in the first few weeks of the quarter, daily TSA screenings as a percent of the prior year ended the quarter down approximately 70%, demonstrating slow but tangible improvement, including a spike around the July 4th holiday in the U.S. Additionally, Boeing's 737 MAX moved closer to FAA approval with the completion of certification flights on July 1. We remain a supplier-of-choice in the global aerospace market and will continue to invest in our assets, including seeking
The following information was filed by Carlisle Companies Inc (CSL) on Tuesday, July 21, 2020 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.