CSL Carlisle Companies Inc

Carlisle Companies Incorporated (NYSE:CSL) reported earnings before interest and income taxes (�EBIT�) from continuing operations of $69.5 million for the quarter ended September 30, 2006, an increase of 31% above EBIT of $52.9 million for the same period 2005. Richmond McKinnish, Carlisle President and CEO, commented, �We continue to see strength in many of our end markets for the remainder of 2006 and into 2007. We are increasing our guidance for income from continuing operations for the full year 2006 to the range of $5.35 to $5.50 per diluted share from the previous range of $5.25 to $5.45 per diluted share.� Income from continuing operations, net of tax, of $43.4 million, or $1.39 per diluted share, for the third quarter 2006, compared to $36.0 million, or $1.17 per diluted share, for the third quarter 2005. Income from continuing operations for the third quarter 2005 included a $3.0 million, or $0.10 per diluted share, benefit for the reduction in income tax liabilities as a result of final settlement of certain federal and state tax filings. Net sales of $648.4 million from continuing operations in the third quarter 2006 were up $103.0 million, or an increase of 19%, as compared to net sales of $545.4 million for the same period 2005. Organic sales growth accounted for $89.0 million, or 86%, of the improvement over the prior-year quarter, primarily as a result of strong organic growth in the Company�s construction materials, specialty trailer and wire and cable businesses. The organic sales growth rate was 16.3% for the third quarter 2006 as compared to an organic growth rate of 3.0% for the third quarter 2005. Acquisitions in the Company�s braking business accounted for $11.9 million, or 12%, of the growth over the third quarter 2005, while changes in foreign currency exchange rates contributed $2.1 million, or 2%. While Carlisle manages its businesses under the three operating groups, Construction Materials, Industrial Components and Diversified Components, effective for the quarter ended September 30, 2006 and going forward, Carlisle will present five financial reporting segments as set forth below. The Construction Materials and Industrial Components financial reporting segments remain unchanged. The Diversified Components group will be represented by the Specialty Products segment which contains the braking business, the Transportation Products segment which contains the specialty trailer business, and the General Industry segment (�All Other� segment) which contains the wire and cable, foodservice and refrigerated truck bodies businesses. Construction Materials: Net sales of $311.8 million in the third quarter of 2006 were 33% above $235.1 million of net sales in the third quarter of 2005 primarily due to higher membrane and insulation volumes. Third quarter 2006 EBIT of $52.5 million was 23% above third quarter 2005 EBIT of $42.6 million. EBIT margin for Construction Materials declined slightly in the third quarter 2006 compared to a very strong third quarter 2005 due to higher raw material costs and changes in sales mix. Segment EBIT for each of the quarters ended September 30, 2006 and 2005 included earnings related to the Company�s equity share of income at its European roofing joint venture, Icopal, of $4.2 million. Industrial Components: Net sales of $164.1 million for the three months ended September 30, 2006 compared with net sales of $164.5 million for the same period in 2005 as consumer demand in the outdoor power equipment market remained soft. EBIT of $6.8 million in the third quarter of 2006 was 31% above EBIT of $5.2 million reported in the same quarter of 2005 on increased selling prices and production efficiencies. Specialty Products: The Company�s braking business recorded net sales of $44.8 million for the three months ended September 30, 2006, an increase of 33% above net sales of $33.7 million for the same period in 2005. The sales increase was primarily due to two acquisitions for the braking business in the last half of 2005. The acquisitions also contributed to the increase in EBIT to $2.6 million in the third quarter of 2006 compared to $1.2 million in the third quarter of 2005. Transportation Products: The Company�s specialty trailer business continued to experience both sales and earnings growth with strong sales in specialized, material hauling and construction trailers. Net sales of $45.0 million in the third quarter of 2006 were 11% higher than net sales of $40.7 million for the same period of 2005. EBIT in the third quarter of 2006 was $7.1 million compared to $6.2 million in the third quarter of 2005, an increase of 15%. General Industry: Net sales of $82.7 million in the third quarter of 2006 were 16% above net sales of $71.4 million in the third quarter of 2005 while EBIT in the third quarter of 2006 of $7.7 million was 88% higher than EBIT of $4.1 million for the same period of 2005. The wire and cable business, foodservice business and refrigerated truck body business all experienced favorable comparisons to the prior year. Discontinued Operations The losses from discontinued operations, net of tax, in the third quarter of 2006 was $4.9 million, or $0.15 per diluted share, as compared to losses from discontinued operations in the third quarter of 2005 of $16.3 million, or $0.53 per diluted share. Net Income Net income for the third quarter ended September 30, 2006 of $38.5 million, or $1.24 per diluted share, was 96% higher than net income in the third quarter ended September 30, 2005 of $19.7 million, or $0.64 per diluted share. The increase in net income for the third quarter 2006 was due primarily to the improved income from continuing operations as well as the reduction in losses associated with the discontinued operations. The increase in net income was achieved despite a higher effective tax rate of 32.4% for the third quarter 2006 compared with an effective tax rate of 25.9% for the third quarter 2005 reflecting the aforementioned settlement of certain income tax liabilities. Cash Flow In August 2006, Carlisle issued $150.0 million in ten-year notes at an interest rate of 6.125% in anticipation of the Company�s 7.25% $150.0 million notes maturing January 2007. The August 2006 note proceeds were utilized in the interim period to reduce shorter-term borrowings and the Company�s utilization of its receivable securitization facility. Cash used in operating activities of $34.2 million for the nine months ended September 30, 2006 includes a reduction in operating cash flow of $137.9 million caused by the reduction in the utilization of the securitization facility. Cash used in investing activities was $69.6 million in 2006 compared to $89.8 million in 2005. Capital expenditures of $72.9 million for the nine months ended September 30, 2006 compared with capital expenditures of $81.1 million for the same period in 2005 with the Construction Materials segment representing the majority of the expenditures for both periods. Cash used for investing activities in 2005 included $28.3 million to fund a brake business acquisition for the Specialty Products segment. Cash provided by financing activities of $110.1 million in 2006 compared to cash provided by financing activities of $29.3 million in 2005. The year-over-year change in financing cash flow is partially due to the aforementioned notes issued in August 2006. The Company also used approximately $36.0 million in 2005 to purchase 0.5 million shares of common stock. Backlog Backlog from continuing operations at September 30, 2006 of $280.1 million compared favorably with backlog of $269.9 million at June 30, 2006 and backlog of $250.2 million at September 30, 2005. Increased backlog for the Company�s construction materials, braking, specialty trailer, and wire and cable businesses contributed to the year-over-year improvement. Conference Call and Webcast The Company will discuss third quarter 2006 results on a conference call for investors on Tuesday, October 24, 2006 at 2:00 p.m. Eastern. The call may be accessed live at http://www.carlisle.com/investors/conference_call.html, or the taped call may be listened to shortly following the live call at the same website location until November 7, 2006. A PowerPoint presentation will also be available for viewing and/or printing at the same website location. Forward-Looking Statements This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations due to changes in global economic, business, competitive, market and regulatory factors. More detailed information about these factors is contained in the Company's filings with the Securities and Exchange Commission. The Company undertakes no duty to update forward-looking statements. Carlisle is a diversified global manufacturing company serving the construction materials, commercial roofing, specialty tire and wheel, power transmission, heavy-duty brake and friction, heavy-haul truck trailer, foodservice, and data transmission industries. CARLISLE COMPANIES INCORPORATED Financial Results For the periods ended September 30 (In millions, except per share data) (Unaudited) � Third Quarter Nine Months 2006� 2005* % Change� � 2006� 2005* % Change� Net sales $ 648.4� $ 545.4� 19% $ 1,961.0� $ 1,673.5� 17% � Income from continuing operations, net of tax $ 43.4� $ 36.0� 20% $ 137.7� $ 107.0� 29% � Income (loss) from discontinued operations, net of tax � (4.9) � (16.3) NM� � (1.9) � (24.4) NM� Net income $ 38.5� $ 19.7� 96% $ 135.8� $ 82.6� 64% � Basic earnings per share Continuing operations $ 1.41� $ 1.18� 19% $ 4.50� $ 3.47� 30% Discontinued operations � (0.15) � (0.54) NM� � (0.06) � (0.79) NM� Net income $ 1.26� $ 0.64� 97% $ 4.44� $ 2.68� 66% � Diluted earnings per share Continuing operations $ 1.39� $ 1.17� 19% $ 4.43� $ 3.43� 29% Discontinued operations � (0.15) � (0.53) NM� � (0.06) � (0.78) NM� Net income $ 1.24� $ 0.64� 94% $ 4.37� $ 2.65� 65% � SEGMENT FINANCIAL DATA (Continuing Operations) (In millions) � Third Quarter 2006� 2005* Sales EBIT % Sales Sales EBIT % Sales Construction Materials $ 311.8� $ 52.5� 16.8% $ 235.1� $ 42.6� 18.1% Industrial Components 164.1� 6.8� 4.1% 164.5� 5.2� 3.2% Specialty Products 44.8� 2.6� 5.8% 33.7� 1.2� 3.6% Transportation Products 45.0� 7.1� 15.8% 40.7� 6.2� 15.2% General Industry � 82.7� � 7.7� 9.3% � 71.4� � 4.1� 5.7% Subtotal 648.4� 76.7� 11.8% 545.4� 59.3� 10.9% Corporate � -� � (7.2) � -� � (6.4) Total $ 648.4� $ 69.5� 10.7% $ 545.4� $ 52.9� 9.7% � Nine Months 2006� 2005* Sales EBIT % Sales Sales EBIT % Sales Construction Materials $ 832.6� $ 131.4� 15.8% $ 634.6� $ 96.0� 15.1% Industrial Components 602.9� 51.9� 8.6% 595.7� 49.7� 8.3% Specialty Products 144.7� 13.0� 9.0% 110.1� 8.5� 7.7% Transportation Products 137.6� 23.6� 17.2% 117.4� 16.3� 13.9% General Industry � 243.2� � 21.0� 8.6% � 215.7� � 16.5� 7.6% Subtotal 1,961.0� 240.9� 12.3% 1,673.5� 187.0� 11.2% Corporate � -� � (23.7) � -� � (21.5) Total $ 1,961.0� $ 217.2� 11.1% $ 1,673.5� $ 165.5� 9.9% � * 2005 figures have been revised to reflect discontinued operations and conform with the 2006 segment presentation. NM = Not Meaningful CARLISLE COMPANIES INCORPORATED Consolidated Statement of Earnings For the periods ended September 30 (In thousands except per share data) (Unaudited) Third Quarter Nine Months 2006� 2005* % Change� � 2006� 2005* % Change� Net sales $ 648,446� $ 545,389� 18.9% $ 1,960,990� $ 1,673,522� 17.2% Cost and expenses: Cost of goods sold 519,102� 439,804� 18.0% 1,557,591� 1,336,850� 16.5% Selling and administrative expenses 59,559� 51,346� 16.0% 180,622� 161,357� 11.9% Research and development expenses 3,726� 3,874� -3.8% 11,311� 11,607� -2.6% Other (income) expense, net � (3,448) � (2,518) NM� � (5,708) � (1,753) NM� � Earnings before interest & income taxes 69,507� 52,883� 31.4% 217,174� 165,461� 31.3% � Interest expense, net � 5,308� � 4,271� 24.3% � 14,927� � 12,309� 21.3% � Earnings before income taxes 64,199� 48,612� 32.1% 202,247� 153,152� 32.1% � Income taxes � 20,819� � 12,586� 65.4% � 64,590� � 46,156� 39.9% Income from continuing operations, net of tax � 43,380� � 36,026� 20.4% � 137,657� � 106,996� 28.7% Percent of net sales 6.7% 6.6% 7.0% 6.4% � Income (loss) from discontinued operations, net of tax � (4,832) � (16,323) NM� � (1,887) � (24,359) NM� � Net income $ 38,548� $ 19,703� 95.6% $ 135,770� $ 82,637� 64.3% � Basic earnings per share Continuing operations $ 1.41� $ 1.18� 19.5% $ 4.50� $ 3.47� 29.7% Discontinued operations � (0.15) � (0.54) NM� � (0.06) � (0.79) NM� Basic earnings per share $ 1.26� $ 0.64� 96.9% $ 4.44� $ 2.68� 65.7% � Diluted earnings per share Continuing operations $ 1.39� $ 1.17� 18.8% $ 4.43� $ 3.43� 29.2% Discontinued operations � (0.15) � (0.53) NM� � (0.06) � (0.78) NM� Diluted earnings per share $ 1.24� $ 0.64� 93.8% $ 4.37� $ 2.65� 64.9% � Average shares outstanding (000's) - basic � 30,679� � 30,593� � 30,589� � 30,836� Average shares outstanding (000's) - diluted � 31,101� � 30,895� � 31,087� � 31,193� � Dividends $ 8,319� $ 7,650� � $ 23,680� $ 21,954� � Dividends per share $ 0.270� $ 0.250� 8.0% $ 0.770� $ 0.710� 8.5% * 2005 figures have been revised to reflect discontinued operations. NM = Not Meaningful CARLISLE COMPANIES INCORPORATED Comparative Condensed Consolidated Balance Sheet (In thousands) (Unaudited) September 30, December 31, 2006� 2005� Assets Current Assets Cash and cash equivalents $ 44,717� $ 38,745� Receivables 396,867� 162,959� Inventories 366,120� 334,711� Prepaid expenses and other 64,161� 57,118� Current assets held for sale � 57,373� � 67,639� Total current assets � 929,238� � 661,172� Property, plant and equipment, net 457,561� 431,996� Other assets 429,812� 423,644� Non-current assets held for sale � 44,467� � 46,445� $ 1,861,078� $ 1,563,257� � Liabilities and Shareholders' Equity Current Liabilities Short-term debt, including current maturities $ 177,699� $ 57,993� Accounts payable 157,571� 127,558� Accrued expenses 148,706� 145,357� Current liabilities associated with assets held for sale � 46,887� � 41,803� Total current liabilities � 530,863� � 372,711� Long-term debt 275,261� 282,426� Other liabilities 177,801� 176,911� Non-current liabilities associated with assets held for sale 2,258� 970� Shareholders' equity � 874,895� � 730,239� $ 1,861,078� $ 1,563,257� CARLISLE COMPANIES INCORPORATED Comparative Condensed Consolidated Statement of Cash Flows For the Nine Months Ended September 30 (In thousands) (Unaudited) 2006� 2005* Operating activities Net income $ 135,770� $ 82,637� Reconciliation of net earnings to cash flows: Depreciation and amortization 43,699� 42,497� Non-cash compensation 5,478� 1,529� Excess tax benefits from share based compensation (4,141) -� Gain on equity investments (1,957) (389) Foreign exchange loss -� 1,634� Deferred taxes 2,197� 3,869� Loss on investments, property and equipment, net 8,149� 30,815� Receivables under securitization program (137,900) 2,900� Working capital (84,354) (44,983) Other � (1,170) � (1,797) Net cash (used in) provided by operating activities � (34,229) � 118,712� Investing activities Capital expenditures (72,871) (81,130) Acquisitions, net of cash (1,875) (28,339) Proceeds from investments, property and equipment 3,993� 18,676� Other � 1,188� � 967� Net cash used in investing activities � (69,565) � (89,826) Financing activities Net change in short-term debt and revolving credit lines (30,681) 83,015� Proceeds from long-term debt 148,875� -� Reductions of long-term debt (6,285) (1,762) Dividends (23,680) (21,954) Excess tax benefits from share based compensation 4,141� -� Treasury shares and stock options, net 13,279� (31,530) Other � 4,405� � 1,486� Net cash provided by financing activities � 110,054� � 29,255� Effect of exchange rate changes on cash � (288) � (528) Change in cash and cash equivalents 5,972� 57,613� Cash and cash equivalents Beginning of period � 38,745� � 25,018� End of period $ 44,717� $ 82,631� � * 2005 figures have been revised to reflect discontinued operations. Carlisle Companies Incorporated (NYSE:CSL) reported earnings before interest and income taxes ("EBIT") from continuing operations of $69.5 million for the quarter ended September 30, 2006, an increase of 31% above EBIT of $52.9 million for the same period 2005. Richmond McKinnish, Carlisle President and CEO, commented, "We continue to see strength in many of our end markets for the remainder of 2006 and into 2007. We are increasing our guidance for income from continuing operations for the full year 2006 to the range of $5.35 to $5.50 per diluted share from the previous range of $5.25 to $5.45 per diluted share." Income from continuing operations, net of tax, of $43.4 million, or $1.39 per diluted share, for the third quarter 2006, compared to $36.0 million, or $1.17 per diluted share, for the third quarter 2005. Income from continuing operations for the third quarter 2005 included a $3.0 million, or $0.10 per diluted share, benefit for the reduction in income tax liabilities as a result of final settlement of certain federal and state tax filings. Net sales of $648.4 million from continuing operations in the third quarter 2006 were up $103.0 million, or an increase of 19%, as compared to net sales of $545.4 million for the same period 2005. Organic sales growth accounted for $89.0 million, or 86%, of the improvement over the prior-year quarter, primarily as a result of strong organic growth in the Company's construction materials, specialty trailer and wire and cable businesses. The organic sales growth rate was 16.3% for the third quarter 2006 as compared to an organic growth rate of 3.0% for the third quarter 2005. Acquisitions in the Company's braking business accounted for $11.9 million, or 12%, of the growth over the third quarter 2005, while changes in foreign currency exchange rates contributed $2.1 million, or 2%. While Carlisle manages its businesses under the three operating groups, Construction Materials, Industrial Components and Diversified Components, effective for the quarter ended September 30, 2006 and going forward, Carlisle will present five financial reporting segments as set forth below. The Construction Materials and Industrial Components financial reporting segments remain unchanged. The Diversified Components group will be represented by the Specialty Products segment which contains the braking business, the Transportation Products segment which contains the specialty trailer business, and the General Industry segment ("All Other" segment) which contains the wire and cable, foodservice and refrigerated truck bodies businesses. Construction Materials: Net sales of $311.8 million in the third quarter of 2006 were 33% above $235.1 million of net sales in the third quarter of 2005 primarily due to higher membrane and insulation volumes. Third quarter 2006 EBIT of $52.5 million was 23% above third quarter 2005 EBIT of $42.6 million. EBIT margin for Construction Materials declined slightly in the third quarter 2006 compared to a very strong third quarter 2005 due to higher raw material costs and changes in sales mix. Segment EBIT for each of the quarters ended September 30, 2006 and 2005 included earnings related to the Company's equity share of income at its European roofing joint venture, Icopal, of $4.2 million. Industrial Components: Net sales of $164.1 million for the three months ended September 30, 2006 compared with net sales of $164.5 million for the same period in 2005 as consumer demand in the outdoor power equipment market remained soft. EBIT of $6.8 million in the third quarter of 2006 was 31% above EBIT of $5.2 million reported in the same quarter of 2005 on increased selling prices and production efficiencies. Specialty Products: The Company's braking business recorded net sales of $44.8 million for the three months ended September 30, 2006, an increase of 33% above net sales of $33.7 million for the same period in 2005. The sales increase was primarily due to two acquisitions for the braking business in the last half of 2005. The acquisitions also contributed to the increase in EBIT to $2.6 million in the third quarter of 2006 compared to $1.2 million in the third quarter of 2005. Transportation Products: The Company's specialty trailer business continued to experience both sales and earnings growth with strong sales in specialized, material hauling and construction trailers. Net sales of $45.0 million in the third quarter of 2006 were 11% higher than net sales of $40.7 million for the same period of 2005. EBIT in the third quarter of 2006 was $7.1 million compared to $6.2 million in the third quarter of 2005, an increase of 15%. General Industry: Net sales of $82.7 million in the third quarter of 2006 were 16% above net sales of $71.4 million in the third quarter of 2005 while EBIT in the third quarter of 2006 of $7.7 million was 88% higher than EBIT of $4.1 million for the same period of 2005. The wire and cable business, foodservice business and refrigerated truck body business all experienced favorable comparisons to the prior year. Discontinued Operations The losses from discontinued operations, net of tax, in the third quarter of 2006 was $4.9 million, or $0.15 per diluted share, as compared to losses from discontinued operations in the third quarter of 2005 of $16.3 million, or $0.53 per diluted share. Net Income Net income for the third quarter ended September 30, 2006 of $38.5 million, or $1.24 per diluted share, was 96% higher than net income in the third quarter ended September 30, 2005 of $19.7 million, or $0.64 per diluted share. The increase in net income for the third quarter 2006 was due primarily to the improved income from continuing operations as well as the reduction in losses associated with the discontinued operations. The increase in net income was achieved despite a higher effective tax rate of 32.4% for the third quarter 2006 compared with an effective tax rate of 25.9% for the third quarter 2005 reflecting the aforementioned settlement of certain income tax liabilities. Cash Flow In August 2006, Carlisle issued $150.0 million in ten-year notes at an interest rate of 6.125% in anticipation of the Company's 7.25% $150.0 million notes maturing January 2007. The August 2006 note proceeds were utilized in the interim period to reduce shorter-term borrowings and the Company's utilization of its receivable securitization facility. Cash used in operating activities of $34.2 million for the nine months ended September 30, 2006 includes a reduction in operating cash flow of $137.9 million caused by the reduction in the utilization of the securitization facility. Cash used in investing activities was $69.6 million in 2006 compared to $89.8 million in 2005. Capital expenditures of $72.9 million for the nine months ended September 30, 2006 compared with capital expenditures of $81.1 million for the same period in 2005 with the Construction Materials segment representing the majority of the expenditures for both periods. Cash used for investing activities in 2005 included $28.3 million to fund a brake business acquisition for the Specialty Products segment. Cash provided by financing activities of $110.1 million in 2006 compared to cash provided by financing activities of $29.3 million in 2005. The year-over-year change in financing cash flow is partially due to the aforementioned notes issued in August 2006. The Company also used approximately $36.0 million in 2005 to purchase 0.5 million shares of common stock. Backlog Backlog from continuing operations at September 30, 2006 of $280.1 million compared favorably with backlog of $269.9 million at June 30, 2006 and backlog of $250.2 million at September 30, 2005. Increased backlog for the Company's construction materials, braking, specialty trailer, and wire and cable businesses contributed to the year-over-year improvement. Conference Call and Webcast The Company will discuss third quarter 2006 results on a conference call for investors on Tuesday, October 24, 2006 at 2:00 p.m. Eastern. The call may be accessed live at http://www.carlisle.com/investors/conference_call.html, or the taped call may be listened to shortly following the live call at the same website location until November 7, 2006. A PowerPoint presentation will also be available for viewing and/or printing at the same website location. Forward-Looking Statements This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations due to changes in global economic, business, competitive, market and regulatory factors. More detailed information about these factors is contained in the Company's filings with the Securities and Exchange Commission. The Company undertakes no duty to update forward-looking statements. Carlisle is a diversified global manufacturing company serving the construction materials, commercial roofing, specialty tire and wheel, power transmission, heavy-duty brake and friction, heavy-haul truck trailer, foodservice, and data transmission industries. -0- *T CARLISLE COMPANIES INCORPORATED Financial Results For the periods ended September 30 (In millions, except per share data) (Unaudited) Third Quarter Nine Months ------------------------- --------------------------- 2006 2005* % Change 2006 2005* % Change ------------------------- --------------------------- Net sales $ 648.4 $545.4 19% $1,961.0 $1,673.5 17% Income from continuing operations, net of tax $ 43.4 $ 36.0 20% $ 137.7 $ 107.0 29% Income (loss) from discontinued operations, net of tax (4.9) (16.3) NM (1.9) (24.4) NM ---------------- ------------------ Net income $ 38.5 $ 19.7 96% $ 135.8 $ 82.6 64% ================ ================== Basic earnings per share Continuing operations $ 1.41 $ 1.18 19% $ 4.50 $ 3.47 30% Discontinued operations (0.15) (0.54) NM (0.06) (0.79) NM ---------------- ------------------ Net income $ 1.26 $ 0.64 97% $ 4.44 $ 2.68 66% ================ ================== Diluted earnings per share Continuing operations $ 1.39 $ 1.17 19% $ 4.43 $ 3.43 29% Discontinued operations (0.15) (0.53) NM (0.06) (0.78) NM ---------------- ------------------ Net income $ 1.24 $ 0.64 94% $ 4.37 $ 2.65 65% ================ ================== SEGMENT FINANCIAL DATA (Continuing Operations) (In millions) Third Quarter 2006 2005* ------------------------- --------------------------- Sales EBIT % Sales Sales EBIT % Sales ------------------------- --------------------------- Construction Materials $ 311.8 $ 52.5 16.8% $ 235.1 $ 42.6 18.1% Industrial Components 164.1 6.8 4.1% 164.5 5.2 3.2% Specialty Products 44.8 2.6 5.8% 33.7 1.2 3.6% Transportation Products 45.0 7.1 15.8% 40.7 6.2 15.2% General Industry 82.7 7.7 9.3% 71.4 4.1 5.7% ---------------- ------------------ Subtotal 648.4 76.7 11.8% 545.4 59.3 10.9% Corporate - (7.2) - (6.4) ---------------- ------------------ Total $ 648.4 $ 69.5 10.7% $ 545.4 $ 52.9 9.7% ================ ================== Nine Months 2006 2005* ------------------------- --------------------------- Sales EBIT % Sales Sales EBIT % Sales ------------------------- --------------------------- Construction Materials $ 832.6 $131.4 15.8% $ 634.6 $ 96.0 15.1% Industrial Components 602.9 51.9 8.6% 595.7 49.7 8.3% Specialty Products 144.7 13.0 9.0% 110.1 8.5 7.7% Transportation Products 137.6 23.6 17.2% 117.4 16.3 13.9% General Industry 243.2 21.0 8.6% 215.7 16.5 7.6% ---------------- ------------------ Subtotal 1,961.0 240.9 12.3% 1,673.5 187.0 11.2% Corporate - (23.7) - (21.5) ---------------- ------------------ Total $1,961.0 $217.2 11.1% $1,673.5 $ 165.5 9.9% ================ ================== * 2005 figures have been revised to reflect discontinued operations and conform with the 2006 segment presentation. NM = Not Meaningful *T -0- *T CARLISLE COMPANIES INCORPORATED Consolidated Statement of Earnings For the periods ended September 30 (In thousands except per share data) (Unaudited) Third Quarter ------------------------------- 2006 2005* % Change ------------------------------ Net sales $ 648,446 $ 545,389 18.9% ------------------------------ Cost and expenses: Cost of goods sold 519,102 439,804 18.0% Selling and administrative expenses 59,559 51,346 16.0% Research and development expenses 3,726 3,874 -3.8% Other (income) expense, net (3,448) (2,518) NM ------------------------------ Earnings before interest & income taxes 69,507 52,883 31.4% Interest expense, net 5,308 4,271 24.3% ------------------------------ Earnings before income taxes 64,199 48,612 32.1% Income taxes 20,819 12,586 65.4% ------------------------------ Income from continuing operations, net of tax 43,380 36,026 20.4% ------------------------------ Percent of net sales 6.7% 6.6% Income (loss) from discontinued operations, net of tax (4,832) (16,323) NM ------------------------------ Net income $ 38,548 $ 19,703 95.6% ============================== Basic earnings per share --------------------------------------- Continuing operations $ 1.41 $ 1.18 19.5% Discontinued operations (0.15) (0.54) NM ------------------------------ Basic earnings per share $ 1.26 $ 0.64 96.9% ============================== Diluted earnings per share --------------------------------------- Continuing operations $ 1.39 $ 1.17 18.8% Discontinued operations (0.15) (0.53) NM ------------------------------ Diluted earnings per share $ 1.24 $ 0.64 93.8% ============================== Average shares outstanding (000's) - basic 30,679 30,593 --------------------- Average shares outstanding (000's) - diluted 31,101 30,895 --------------------- Dividends $ 8,319 $ 7,650 ------------------------------ Dividends per share $ 0.270 $ 0.250 8.0% ------------------------------ Nine Months ------------------------------- 2006 2005* % Change ------------------------------- Net sales $1,960,990 $1,673,522 17.2% ------------------------------- Cost and expenses: Cost of goods sold 1,557,591 1,336,850 16.5% Selling and administrative expenses 180,622 161,357 11.9% Research and development expenses 11,311 11,607 -2.6% Other (income) expense, net (5,708) (1,753) NM ------------------------------- Earnings before interest & income taxes 217,174 165,461 31.3% Interest expense, net 14,927 12,309 21.3% ------------------------------- Earnings before income taxes 202,247 153,152 32.1% Income taxes 64,590 46,156 39.9% ------------------------------- Income from continuing operations, net of tax 137,657 106,996 28.7% ------------------------------- Percent of net sales 7.0% 6.4% Income (loss) from discontinued operations, net of tax (1,887) (24,359) NM ------------------------------- Net income $ 135,770 $ 82,637 64.3% =============================== Basic earnings per share ------------------------------------- Continuing operations $ 4.50 $ 3.47 29.7% Discontinued operations (0.06) (0.79) NM ------------------------------- Basic earnings per share $ 4.44 $ 2.68 65.7% =============================== Diluted earnings per share ------------------------------------- Continuing operations $ 4.43 $ 3.43 29.2% Discontinued operations (0.06) (0.78) NM ------------------------------- Diluted earnings per share $ 4.37 $ 2.65 64.9% =============================== Average shares outstanding (000's) - basic 30,589 30,836 ---------------------- Average shares outstanding (000's) - diluted 31,087 31,193 ---------------------- Dividends $ 23,680 $ 21,954 ------------------------------- Dividends per share $ 0.770 $ 0.710 8.5% ------------------------------- * 2005 figures have been revised to reflect discontinued operations. NM = Not Meaningful *T -0- *T CARLISLE COMPANIES INCORPORATED Comparative Condensed Consolidated Balance Sheet (In thousands) (Unaudited) September 30, December 31, 2006 2005 ------------------------------ Assets Current Assets Cash and cash equivalents $ 44,717 $ 38,745 Receivables 396,867 162,959 Inventories 366,120 334,711 Prepaid expenses and other 64,161 57,118 Current assets held for sale 57,373 67,639 ------------------------------ Total current assets 929,238 661,172 ------------------------------ Property, plant and equipment, net 457,561 431,996 Other assets 429,812 423,644 Non-current assets held for sale 44,467 46,445 ------------------------------ $ 1,861,078 $ 1,563,257 ============================== Liabilities and Shareholders' Equity Current Liabilities Short-term debt, including current maturities $ 177,699 $ 57,993 Accounts payable 157,571 127,558 Accrued expenses 148,706 145,357 Current liabilities associated with assets held for sale 46,887 41,803 ------------------------------ Total current liabilities 530,863 372,711 ------------------------------ Long-term debt 275,261 282,426 Other liabilities 177,801 176,911 Non-current liabilities associated with assets held for sale 2,258 970 Shareholders' equity 874,895 730,239 ------------------------------ $ 1,861,078 $ 1,563,257 ============================== *T -0- *T CARLISLE COMPANIES INCORPORATED Comparative Condensed Consolidated Statement of Cash Flows For the Nine Months Ended September 30 (In thousands) (Unaudited) 2006 2005* -------------------- Operating activities Net income $ 135,770 $ 82,637 Reconciliation of net earnings to cash flows: Depreciation and amortization 43,699 42,497 Non-cash compensation 5,478 1,529 Excess tax benefits from share based compensation (4,141) - Gain on equity investments (1,957) (389) Foreign exchange loss - 1,634 Deferred taxes 2,197 3,869 Loss on investments, property and equipment, net 8,149 30,815 Receivables under securitization program (137,900) 2,900 Working capital (84,354) (44,983) Other (1,170) (1,797) -------------------- Net cash (used in) provided by operating activities (34,229) 118,712 -------------------- Investing activities Capital expenditures (72,871) (81,130) Acquisitions, net of cash (1,875) (28,339) Proceeds from investments, property and equipment 3,993 18,676 Other 1,188 967 -------------------- Net cash used in investing activities (69,565) (89,826) -------------------- Financing activities Net change in short-term debt and revolving credit lines (30,681) 83,015 Proceeds from long-term debt 148,875 - Reductions of long-term debt (6,285) (1,762) Dividends (23,680) (21,954) Excess tax benefits from share based compensation 4,141 - Treasury shares and stock options, net 13,279 (31,530) Other 4,405 1,486 -------------------- Net cash provided by financing activities 110,054 29,255 -------------------- Effect of exchange rate changes on cash (288) (528) -------------------- Change in cash and cash equivalents 5,972 57,613 Cash and cash equivalents Beginning of period 38,745 25,018 -------------------- End of period $ 44,717 $ 82,631 -------------------- * 2005 figures have been revised to reflect discontinued operations. *T