CHARLOTTE, N.C. (Oct. 24, 2012)—Carlisle Companies Inc.'s Transportation Products business unit reversed an operating loss from a year ago to a pre-tax operating profit of $6.5 million in the quarter ended Sept. 30 on slightly higher sales of $158.2 million.
The Transportation Products unit, which includes Carlisle Tire & Wheel, reported 18-percent growth in sales of tires and wheels for high-speed trailers but said sales of products for the outdoor power equipment market fell 22 percent, reflecting the impact of a drought in parts of the U.S.
For the nine months ended Sept. 30, the business unit reported a fivefold increase in earnings before interest and income taxes to $44.6 million on 7.2-percent higher sales of $593 million.
Carlisle attributed some of the earnings turnaround to the non-recurrence of start-up inefficiencies at its tire plant in Jackson, Tenn., that were a drag on earnings in 2011. It also cited lower raw material costs and other operating expense savings for the improvements.
In the 2011 period Charlotte-based Carlisle recorded $4 million for management and organizational charges and $1.3 million in plant restructuring costs.
Overall, Carlisle Companies reported third-quarter income from continuing operations of $69.7 million—a 30-percent increase over 2011—on 4.6-percent higher sales of $910.2 million.
For the nine-month period, income from continuing operations rose 54 percent to $219.2 million while sales were up 14.3 percent to $2.78 billion.
David Roberts, chairman, president and CEO, said Carlisle will “continue to be focused on margin performance and long-term investment in our businesses, which will drive sales growth and operating efficiencies.”
For the full year 2012, Carlisle expects sales to grow in the low double-digits, including acquisitions, and said it is on track for “significant” year-over-year margin improvement.