CHARLOTTE, N.C. (April 15, 2005) — Despite double-digit growth in sales and earnings in the first quarter, Carlisle Companies Inc. is cautious about the remainder of 2005, citing “uncertainties” about raw material costs and interest rates.
“Though our key markets remain strong and our outlook for improved pricing and margins is positive, we must temper our optimism,” said Richmond McKinnish, president and CEO. “Uncertainties surrounding future costs of oil-based commodities and certain chemicals as well as the impact of rising interest rates require that we maintain our 2005 guidance of $4.10 to $4.25 per diluted share for income from continuing operations.”
For the quarter, Carlisle's net income from continuing operations rose 29.2 percent to $30.1 million while sales improved 16 percent to $592.3 million.
Carlisle's rubber-related businesses—industrial components and construction materials—contributed positively to the results.
Industrial components, which includes Carlisle Tire & Wheel, reported 8.8-percent better operating earnings and 15.5-percent higher sales. Carlisle attributed most of the increase, to $222 million, to growth in the tire and wheel business in the commercial power equipment and lawn care, ATV and replacement supply chains. The addition of sales from solid tire maker Trintex, acquired last June, accounted for about one-third of the sales improvement over 2003.
The first-time inclusion of Trintex also aided the segment earnings growth, to $24.7 million, but its positive contribution was offset by unfavorable product mix, unabsorbed overhead on lower demand for high-speed and styled wheel products and increased warehousing and freight costs, Carlisle said.