Carlisle Says Weakness In CCM, CBF Segments To Hurt Q4 Results

(RTTNews) - Carlisle Companies Inc. (CSL) said Monday that, while preliminary unaudited results indicate that the company will be reporting record net sales and net earnings for the full year 2014, certain unexpected circumstances at Carlisle Construction Materials and Carlisle Brake & Friction will negatively impact fourth quarter results.

Following continued strong sales volume growth, Carlisle Construction Materials experienced lower sales volume growth in November and December due in part to the early onset of winter conditions in much of the United States, compounded by lower than anticipated demand and the negative impact of foreign currency fluctuations from the stronger U.S. dollar on its sales into Europe. As a result, net sales growth for the Carlisle Construction Materials segment will be in the mid-single digit percent range in the fourth quarter compared to 16% net sales growth in the prior quarter. For the full year 2014, net sales growth at Carlisle Construction Materials is estimated to be in the high-single digit percent range, the company said.

In addition to lower than expected fourth quarter net sales growth, the company said Carlisle Construction Materials' EBIT was negatively impacted by higher costs for plant startups, product line closings, and higher operating costs.

Also in the fourth quarter 2014, net sales at Carlisle Brake & Friction will decline modestly versus the prior year quarter due to the recent well publicized decline in demand in the agriculture markets, the continued malaise in the mining markets, and the negative impact of foreign currency fluctuations from the stronger U.S. dollar.

The company said Carlisle Brake & Friction incurred restructuring and severance costs during the fourth quarter 2014 in its continued efforts to better align its cost structure with current levels of customer demand.

As a result of lower than anticipated performance by Carlisle Construction Materials and Carlisle Brake & Friction, Carlisle said it now expect its overall EBIT margin for the full year 2014 to be level with the prior year. Carlisle's total net sales growth for 2014 is now estimated to be in the high single digit percent range, including sales from the acquisition of LHi Technologies.

Previously, the company expected high single-digit percentage sales growth as well as higher EBIT and EBIT margin expansion for the full year 2014.

The company will report its fourth quarter 2014 and full year 2014 results on February 5.