Carlisle Companies, Charlotte, N.C., has decided to dispose of its on-highway brake business and its power transmission belt business.
A strategic plan announced during the company's fourth quarter 2007 earnings call was developed to simplify Carlisle's business and focus management's attention on the growth and margin improvement opportunities in its Construction Materials, Transportation Products and Applied Technologies segments while maximizing value and considering strategic alternatives for some of the businesses in its Specialty Products segment, explained David A. Roberts, Chairman, President and CEO. "After evaluating the power transmission belt business and on-highway brake business, which recorded combined net sales of approximately $200 million in 2007, a decision was made in April 2008 to develop an exit strategy for these businesses."
The company reported net sales of $708.3 million for the quarter ended March 31, a 13 percent improvement over the first quarter of 2007. Organic sales growth of 4 percent was led by increased sales volumes in the Construction Materials and Applied Technologies segments. Acquisitions for its Construction Materials business and its Applied Technologies' foodservice business accounted for 8 percent.
Operating income of $44.1 million in the first quarter 2008 was down from $51.1 million in the first quarter of 2007. Raw material cost increases and productivity problems in a few of its tire and wheel plants were the primary reasons for the year-over-year decrease in operating income.
The loss from continuing operations of $61.7 million in the first quarter included total after-tax impairment charges of $89.5 million, or $1.46 per diluted share, related to Carlisle's power transmission belt business and on-highway brake business reported in the Specialty Products segment. Income from continuing operations in the first quarter 2007 was $33.7 million, or $0.54 per diluted share.
A strategic plan announced during the company's fourth quarter 2007 earnings call was developed to simplify Carlisle's business and focus management's attention on the growth and margin improvement opportunities in its Construction Materials, Transportation Products and Applied Technologies segments while maximizing value and considering strategic alternatives for some of the businesses in its Specialty Products segment, explained David A. Roberts, Chairman, President and CEO. "After evaluating the power transmission belt business and on-highway brake business, which recorded combined net sales of approximately $200 million in 2007, a decision was made in April 2008 to develop an exit strategy for these businesses."
The company reported net sales of $708.3 million for the quarter ended March 31, a 13 percent improvement over the first quarter of 2007. Organic sales growth of 4 percent was led by increased sales volumes in the Construction Materials and Applied Technologies segments. Acquisitions for its Construction Materials business and its Applied Technologies' foodservice business accounted for 8 percent.
Operating income of $44.1 million in the first quarter 2008 was down from $51.1 million in the first quarter of 2007. Raw material cost increases and productivity problems in a few of its tire and wheel plants were the primary reasons for the year-over-year decrease in operating income.
The loss from continuing operations of $61.7 million in the first quarter included total after-tax impairment charges of $89.5 million, or $1.46 per diluted share, related to Carlisle's power transmission belt business and on-highway brake business reported in the Specialty Products segment. Income from continuing operations in the first quarter 2007 was $33.7 million, or $0.54 per diluted share.
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