CHARLOTTE, N.C. (Oct. 22, 2008) — Carlisle Companies Inc. experienced a decline in both net and operating income for the third quarter while sales increased.
Net income dropped 39 percent to $50.4 million on the period, with much of that attributed to an after-tax gain related to a divestiture during the 2007 quarter. Operating earnings fell 8 percent to $81.8 million mainly because of unrecovered raw material cost increases and a decline in unit volume within the Transportation Products and Applied Technologies segments.
Sales for the quarter jumped 14 percent to $832.5 million, with half of the gains organic and the other half because of acquisitions, according to Carlisle.
While raw material costs appear to be stabilizing, the company hasn't been able to pass along all of the increases because of softness in the market and competition, said David Roberts, chairman, president and CEO. He said Carlisle is making progress in selling its power transmission belt business and on-highway brake business, which were put up for sale in April. The company expects to complete disposition of these businesses by year's end.
Through the first nine months of the year, net income declined 76 percent to $42.1 million, operating income dipped 3 percent to $217.2 million and sales rose 15 percent to $2.35 billion.