CHARLOTTE, N.C. (Oct. 22, 2009)—Specialty tire and wheel maker Carlisle Cos. Inc. posted a 7.5-percent decline in third quarter net income to $46.6 million on lower sales and restructuring expenses.
Carlisle said its net income was negatively impacted by restructuring costs related to previously announced plant consolidations. Sales for the quarter ended Sept. 30 fell 27.3 percent to $604.6 million.
For the nine-month period, Carlisle's net income surged to $108.7 million compared with $42.1 million in 2008 despite net sales falling 26.1 percent to $1.7 billion.
The company's Transportation Products division—which includes its Tire & Wheel business unit—saw its quarterly operating income drop 54 percent to $4.0 million as sales fell 37 percent to $129.2 million during the period. For the nine-month period, operating income was down 16 percent to $44.9 million as sales were off 31.8 percent to $470.8 million.
Sales were down in all markets in the Transportation Products segment as trailer sales decreased 64 percent from a year ago, Carlisle said.
Despite restructuring costs and lower sales, the segment was positively impacted by cost reductions and lower raw material prices, the company said.
“We continue to improve our operating margins despite our challenging end-markets,” said David Roberts, Carlisle chairman, president and CEO. “Although sales declined 27 percent in the third quarter, our operating margins improved to 11.7 percent from 9.8 percent for the third quarter 2008.”