Market Overview

Carlisle Companies Reports Record Second Quarter 2018 Earnings per Share from Continuing Operations of $1.87, a 28.1% Increase from Prior Year


Carlisle Companies Incorporated (NYSE:CSL) reported record revenues of
$1,236.1 million for the second quarter of 2018, a 25.6% increase from
$983.9 million for the second quarter of 2017. Organic revenues grew
9.7%, acquired revenues contributed a total of 14.3% in the quarter,
foreign exchange had a positive impact of 0.7%, and adoption of the new
FASB revenue recognition standard had a positive impact of 0.9%.

Carlisle reported second quarter Operating Income of $159.7, an increase
of 9.2% from the second quarter of 2017 driven primarily by higher sales
volumes, price realization, contributions from acquisitions, and
continued operational improvements and cost savings from the Carlisle
Operating System. Operating Income performance was partially offset by
rising raw material, freight and labor-related costs, and unfavorable
product mix. In addition to the above Operating Income drivers,
Carlisle's diluted EPS was also impacted positively by a lower effective
tax rate and reduced share count in the quarter.

  Three Months Ended June 30,
(in millions, except per share amounts) 2018   2017
Revenues $ 1,236.1 $ 983.9
Operating income $ 159.7 $ 146.3
Income from continuing operations, net of tax $ 114.7 $ 94.7
Diluted EPS from continuing operations $ 1.87 $ 1.46
Items affecting comparability (1) $ 0.10 $ 0.09

(1) See schedule of Items Affecting Comparability in
the financial exhibits

All financial and percentage comparisons in the Company's second quarter
of 2018 reporting are made to the same quarter of the previous year,
unless otherwise stated.


D. Christian "Chris" Koch, President and Chief Executive Officer, said,
"We are pleased with Carlisle's record second quarter sales and diluted
EPS results. Carlisle experienced strong organic growth driven by
healthy U.S. commercial construction demand at our Carlisle Construction
Materials segment (CCM), robust commercial aircraft build rates at our
Carlisle Interconnect Technologies segment (CIT), strengthening of
Carlisle Brake & Friction's (CBF) off-highway vehicle markets, and
continued sequential Operating Income improvement at Carlisle Fluid
Technologies (CFT). We are very encouraged by CCM's ability to drive
meaningful price increases in the quarter, reflecting our price

Progress and momentum continue to build on the deployment of Vision
2025. Consistent with our key strategic initiatives, in the quarter our
organic growth was almost double our goal of 5%; we made three small but
meaningful acquisitions: two metal roofing companies within the CCM
segment and a European aerospace engineering firm within CIT; and we
continued to return capital to shareholders, paying $22.5 million in
dividends and repurchasing approximately $111 million of Carlisle
shares. Additionally, recognizing the important contribution of all
employees to the success of Vision 2025, we announced a stock option
grant to U.S. employees, and a stock appreciation rights grant to
employees outside the U.S., giving the opportunity for all of our 14,000
global employees to be engaged in, and benefit from our success."

Segment Information

Carlisle Construction Materials (CCM) achieved record second
quarter revenues and Operating Income driven by strong U.S. commercial
construction demand in addition to continued progress on price
realization. Accella's revenue performance continued to meet our
expectations and integration activities are on track. CCM's
year-over-year operating margin decline was driven by higher raw
material, labor and freight costs, and dilution from the Accella
acquisition. Profitability of the legacy CCM business was similar to the
second quarter of 2017.

(in millions)   Three Months Ended June 30,  



Price /
Volume Effect


Rate Effect

2018   2017   Change $   Change %
Revenues $   828.6 $   631.2 $   197.4 31.3% 22.3% 8.5% 0.5%
Operating income $ 141.4 $ 129.1 $ 12.3 9.5%
Operating margin percentage 17.1 % 20.5 % -340bps
Items affecting comparability $ 0.7 $ 0.3

We now expect CCM revenues to grow in the mid-twenty percent range in
2018, including contributions from acquisitions, with organic revenue
growth in the mid-to-high single digits.

Carlisle Interconnect Technologies (CIT) delivered record second
quarter revenues, driven largely by the Aerospace and Test &
Measurement markets, inclusive of Carlisle's adoption of the new revenue
recognition standard. Operating Income improved year-over-year driven by
higher volumes, savings from COS, and lower restructuring spend,
partially offset by foreign exchange pressure related to the Chinese
Renminbi and unfavorable product mix.

(in millions)   Three Months Ended June 30,  



Price /
Volume Effect


Rate Effect

2018   2017   Change $   Change %
Revenues $   237.7 $   201.8 $   35.9 17.8% 0.1% 17.6% 0.1%
Operating income $ 27.5 $ 20.2 $ 7.3 36.1%
Operating margin percentage 11.6 % 10.0 % +160bps
Items affecting comparability $ 1.9 $ 5.6

We continue to expect CIT revenues to exceed ten percent growth in 2018.

Carlisle Brake & Friction (CBF) achieved strong organic
revenue growth in the second quarter of 2018, reflecting a continued
recovery in off-highway vehicle markets, especially key end markets of
Construction, Agriculture, and Mining. Operating Income growth was
largely driven by volume and price realization, partially offset by
costs associated with our Tulsa, Oklahoma to Medina, Ohio facility
consolidation, which is on track to be completed by year end.

(in millions)   Three Months Ended June 30,  



Price /
Volume Effect


Rate Effect

2018   2017   Change $   Change %
Revenues $   96.5 $   79.9 $   16.6 20.8% —% 17.7% 3.1%
Operating income $ 2.9 $ 1.3 $ 1.6 123.1%
Operating margin percentage 3.0 % 1.6 % +140bps
Items affecting comparability $ 3.9 $ 1.7

We continue to expect CBF revenues to grow in the mid-teens in 2018.

Carlisle Fluid Technologies (CFT) revenues in the second quarter
of 2018, excluding FX, increased slightly. Strong growth in Automotive
Refinish and General Industrial markets was offset by weakness in the
Transportation market. Operating Income benefited from previous actions
we have taken to drive efficiencies from our multiple facility
rationalization efforts, progress on vertical integration, and sourcing

(in millions)   Three Months Ended June 30,  



Price /
Volume Effect


Rate Effect

2018   2017   Change $   Change %
Revenues $   73.3 $   71.0 $   2.3 3.2% —% 0.4% 2.8%
Operating income $ 7.8 $ 7.4 $ 0.4 5.4%
Operating margin percentage 10.6 % 10.4 % +20bps
Items affecting comparability $ 1.0 $ 0.5

We continue to expect CFT revenues to grow mid-single digits in 2018.

Koch concluded by stating, "Following our strong second quarter
performance, we enter the second half of 2018 well-positioned to achieve
our growth and performance objectives. We continue to have a positive
outlook for 2018, bolstered by the strong commitment of our CCM team to
maintaining price discipline, our continued focus on improved
profitability at CFT, and the progress made on our restructuring
efforts. We now expect overall revenue growth in 2018 to be
approximately twenty percent. Favorably positioned with our ample
liquidity and strong balance sheet, we remain committed to pursuing
growth opportunities, both organically and through acquisitions, and
returning capital to shareholders. With Vision 2025 well underway, we
expect record results for Carlisle in 2018."

Cash Flow

Cash flow used in operations of $2.8 million for the six months ended
June 30, 2018, was $137.5 million lower than cash provided of $134.7
million for the prior year period.

Free cash flow (defined as cash provided by or used in operating
activities less capital expenditures, and comprised of continuing and
discontinued operations) was a use of $69.7 million for the six months
ended June 30, 2018, a decrease of $138.3 million versus the prior year.
The decrease in free cash flow was due to the timing of cash taxes paid
related to the sale of Carlisle FoodService Products and U.S. tax
reform. For the full year, excluding the effect of the sale of
FoodService Products, we expect free cash flow conversion to be
approximately 100%.

As of June 30, 2018, we had $762.4 million cash on hand and $1.0 billion
of availability under our revolving credit facility.

Conference Call and Webcast

The Company will discuss the second quarter of 2018 results on a
conference call at 5:00 p.m. ET today. The call may be accessed live by
going to the Investor Relations section of the Carlisle website (,
or the taped call may be listened to shortly following the live call at
the same website location. A PowerPoint presentation will accompany the
call and can also be found on the Carlisle website.

Forward-Looking Statements

This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements generally use words such as "expect,"
"foresee," "anticipate," "believe," "project," "should," "estimate,"
"will," "plans," "forecast," and similar expressions, and reflect our
expectations concerning the future. It is possible that our future
performance may differ materially from current expectations expressed in
these forward-looking statements, due to a variety of factors such as:
increasing price and product/service competition by foreign and domestic
competitors, including new entrants; technological developments and
changes; the ability to continue to introduce competitive new products
and services on a timely, cost-effective basis; our mix of
products/services; increases in raw material costs which cannot be
recovered in product pricing; domestic and foreign governmental and
public policy changes including environmental and industry regulations;
threats associated with and efforts to combat terrorism; protection and
validity of patent and other intellectual property rights; the
successful integration and identification of our strategic acquisitions;
the cyclical nature of our businesses; and the outcome of pending and
future litigation and governmental proceedings. In addition, such
statements could be affected by general industry and market conditions
and growth rates, the condition of the financial and credit markets, and
general domestic and international economic conditions including
interest rate and currency exchange rate fluctuations. Further, any
conflict in the international arena may adversely affect general market
conditions and our future performance. We refer you to the documents we
file from time to time with the Securities and Exchange Commission, such
as our reports on Form 10-K, Form 10-Q and Form 8-K, for a discussion of
these and other risks and uncertainties that could cause our actual
results to differ materially from our current expectations and from the
forward-looking statements contained in this press release. We undertake
no obligation to update any forward-looking statement.

Definitions of Organic Revenue and Free Cash

Organic revenue is defined as revenues excluding revenues from
acquisitions within the last twelve months, changes in foreign exchange
rates versus the U.S. Dollar, and the adoption of the new revenue
recognition standard.

Free Cash Flow is defined as Operating Cash Flows less Capital

About Carlisle Companies Incorporated

Carlisle Companies Incorporated is a diversified, global portfolio of
niche brands and businesses with highly engineered and high margin
products. Carlisle is committed to generating superior shareholder
returns by combining a unique management style of decentralization,
entrepreneurial spirit, active M&A, and a balanced approach to capital
deployment, all with a culture of continuous improvement as embodied in
the Carlisle Operating System. Carlisle's markets include: commercial
roofing, specialty polyurethane, agriculture, mining, construction,
aerospace, medical, defense, transportation, industrial, protective
coating and auto refinishing. Carlisle's worldwide team of employees
generated $4.1 billion in revenues in 2017. Learn more about Carlisle at

Carlisle Companies Incorporated

Unaudited Condensed Consolidated Statements of Income

Three Months Ended June 30,
(in millions except share and per share amounts) 2018   2017
Revenues $ 1,236.1 $ 983.9
Cost of goods sold 903.9 697.4
Selling and administrative expenses 159.9 127.0
Research and development expenses 14.2 13.1
Other operating (income) expense, net (1.6 ) 0.1  
Operating income 159.7 146.3
Interest expense, net 14.2 7.0
Other non-operating (income) expense, net (0.7 ) (0.4 )
Income from continuing operations before income taxes 146.2 139.7
Provision for income taxes 31.5   45.0  
Income from continuing operations 114.7 94.7
Discontinued operations:
(Loss) income before income taxes (1.3 ) 12.1
(Benefit) provision for income taxes (0.3 ) 4.5  
(Loss) income from discontinued operations (1.0 ) 7.6  
Net income $ 113.7   $ 102.3  
Basic earnings per share attributable to common shares:
Income from continuing operations $ 1.88 $ 1.47
(Loss) income from discontinued operations (0.02 ) 0.12  
Basic earnings per share $ 1.86   $ 1.59  
Diluted earnings per share attributable to common shares:
Income from continuing operations $ 1.87 $ 1.46
(Loss) income from discontinued operations (0.02 ) 0.12  
Diluted earnings per share $ 1.85   $ 1.58  
Average shares outstanding (in thousands):
Basic 60,641 63,746
Diluted 61,059 64,140
Dividends declared and paid per share $ 0.37 $ 0.35

(1) Basic and diluted EPS calculated based on
"two-class" method of computing earnings per
using the following income attributable to common shares:

Income from continuing operations   $ 114.0     $ 93.6
Net income $ 113.0 $ 101.1

Carlisle Companies Incorporated

Unaudited Segment Information

Three Months Ended June 30, Increase / (Decrease)
(in millions, except percentages) 2018   2017 Amount   Percent
Revenues to Unaffiliated Customers
Carlisle Construction Materials $ 828.6 $ 631.2 $ 197.4 31.3 %
Carlisle Interconnect Technologies 237.7 201.8 35.9 17.8
Carlisle Fluid Technologies 73.3 71.0 2.3 3.2
Carlisle Brake & Friction 96.5   79.9   16.6   20.8
Total $ 1,236.1   $ 983.9   $ 252.2   25.6
Operating Income (Loss)
Carlisle Construction Materials $ 141.4 $ 129.1 $ 12.3 9.5 %
Carlisle Interconnect Technologies 27.5 20.2 7.3 36.1
Carlisle Fluid Technologies 7.8 7.4 0.4 5.4
Carlisle Brake & Friction 2.9   1.3   1.6   123.1
Segment Totals 179.6 158.0 21.6 13.7
Corporate and unallocated (1) (19.9 ) (11.7 ) (8.2 ) (70.1 )
Total $ 159.7   $ 146.3   $ 13.4   9.2
Operating Margin Percentage
Carlisle Construction Materials 17.1 % 20.5 %
Carlisle Interconnect Technologies 11.6 10.0
Carlisle Fluid Technologies 10.6 10.4
Carlisle Brake & Friction 3.0 1.6
Total 12.9 14.9

(1) Includes general corporate expenses and other
unallocated costs.


Carlisle Companies Incorporated
Unaudited Items Affecting
Comparability Information

Items affecting comparability include costs, and losses or gains related
to, among other things, growth and profitability improvement initiatives
and other events outside of core business operations (such as asset
impairments, exit and disposal and facility rationalization charges,
costs of and related to acquisitions, litigation costs, gains and losses
from and costs related to divestitures, and discrete tax items). Because
these items affect Carlisle's, or any particular operating segment's,
financial condition or results in a specific period in which they are
recognized, we believe it is appropriate to present the total of these
items to provide information regarding the comparability of results of
operations period to period.

  Three Months Ended June 30,
(in millions, except per share amounts) 2018   2017
Impact to Operating Income
Exit and disposal costs 4.6 5.0
Other facility rationalization costs 2.7 3.1
Acquisition related costs:
Inventory step-up amortization 0.4
Other acquisition costs 0.5 0.4
Litigation costs 1.4
Gains from divestitures (1.9 )
Total items affecting comparability $ 7.7   $ 8.5
Impact to Diluted EPS from Continuing Operations (1)
Exit and disposal costs 0.05 0.06
Other facility rationalization costs 0.04 0.02
Acquisition related costs:
Inventory step-up amortization 0.01
Other acquisition costs 0.01 0.01
Litigation costs 0.02
Gains from divestitures (0.03 )
Total items affecting comparability $ 0.10   $ 0.09
Impact to Operating Income
Carlisle Construction Materials $ 0.7 $ 0.3
Carlisle Interconnect Technologies 1.9 5.6
Carlisle Fluid Technologies 1.0 0.5
Carlisle Brake & Friction 3.9 1.7
Corporate 0.2   0.4
Total items affecting comparability $ 7.7   $ 8.5
Impact to Diluted EPS from Continuing Operations (1)
Carlisle Construction Materials $ 0.01 $
Carlisle Interconnect Technologies 0.02 0.06
Carlisle Fluid Technologies 0.01
Carlisle Brake & Friction 0.05 0.02
Corporate 0.01   0.01
Total items affecting comparability $ 0.10   $ 0.09

(1) Tax effect is based on the rate of the jurisdiction
where the expense is deductible or income is taxable.

Carlisle Companies Incorporated

Unaudited Condensed Consolidated Statements of Cash Flows

Six Months Ended June 30,
(in millions) 2018   2017
Net cash (used in) provided by operating activities (2.8 ) 134.7
Investing activities
Proceeds from sale of discontinued operation 754.6
Capital expenditures (66.9 ) (66.1 )
Acquisitions, net of cash acquired (19.3 ) (225.9 )
Other investing activities, net 5.7   0.1  
Net cash provided by (used in) investing activities 674.1 (291.9 )
Financing activities
Proceeds from revolving credit facility 263.0
Repayments of revolving credit facility (153.0 )
Repurchases of common stock (235.7 ) (150.0 )
Dividends paid (45.6 ) (45.8 )
Withholding tax paid related to stock-based compensation (9.6 ) (8.1 )
Proceeds from exercise of stock options 5.0   3.5  
Net cash used in financing activities (285.9 ) (90.4 )
Effect of foreign currency exchange rate changes on cash and cash
Change in cash and cash equivalents 385.4 (245.5 )
Change in cash and cash equivalents of discontinued operations (1.3 ) (3.7 )
Cash and cash equivalents
Beginning of period 378.3   385.3  
End of period $ 762.4   $ 136.1  

Carlisle Companies Incorporated

Selected Consolidated Balance Sheet Data

(in millions)

June 30, 2018

December 31, 2017

Cash and cash equivalents 762.4 378.3
Long-term debt 1,586.9 1,586.2
Total shareholders' equity 2,672.3 2,528.3

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