SYRACUSE, N.Y. (April 23, 2001)—Carlisle Companies Inc. reported a net loss of $10.2 million for the first quarter due to a $24 million restructuring charge.
Net earnings before the restructuring charge were $13.9 million. The charge is composed of costs related to exiting and realigning facilities that have underperformed in order to improve future operating performance, the company said.
Approximately $18.8 million of the restructuring charge was spent on machinery, equipment, inventory and goodwill write-offs. The remaining $5.2 million after tax represents anticipated cash expenses from involuntary employee terminations and other restructuring costs, Carlisle said.
Sales for the quarter rose 7 percent from last year to $463.2 million. Company subsidiaries Carlisle Tire & Wheel, Carlisle Process Systems, Tensolite and Carlisle SynTec all showed sales growth.
"Carlisle has been impacted by the manufacturing slowdown evidenced throughout the industry, especially in the automotive and transportation markets," the company said.
"We have taken appropriate actions to reduce costs and eliminate marginal assets. Although this produces a loss in the short term, our competitive position is strong, and we are confident that these actions will contribute to a leaner and improved Carlisle," Carlisle said.