Carlisle Cos. reports higher profit in 2nd quarter
07/22/2014 7:54 AM
07/22/2014 7:55 AM
Ballantyne-based Carlisle Cos. on Tuesday reported higher profit in the second quarter from the same period a year ago, when it took a $100 million impairment charge for its under-performing transportation segment.
The company said it made profit of $75.2 million in the second quarter. In the same quarter last year, it had profit of $8.2 million as earnings were weighed down by the charge in the transportation segment, which Carlisle sold in December because of disappointing profit margins.
Company officials said Tuesday that they continue to search for other businesses to acquire, as they seek to replace the sizable revenue the transportation segment generated.
Despite its low profit margins, the segment, which made specialty tires and other products, was the company’s second-largest.
“We are hopeful of adding a business or two by the end of the year,” President David Roberts said on a conference call with analysts.
In the second quarter, all four of Carlisle’s remaining business segments reported higher revenue from a year ago. Revenue for the four segments combined was $859.5 million, up 8.4 percent from $792.6 million in the second quarter last year.
The company said rising demand to replace roofs helped boost sales in the construction materials segment, which manufactures commercial and industrial roofing products. Earnings in the segment were hurt by higher product costs, lower selling prices and startup expenses associated with a new manufacturing plant in Illinois.
Carlisle said it had record revenue in its interconnect technologies segment, which makes cables and wires for commercial and military aircraft. Clients include Boeing, which is using the systems in its 787 Dreamliner.
Carlisle’s brake and friction segment posted lower profitability, by one measurement, compared with a year ago, because of lower selling prices. The segment sells systems used primarily by the mining, construction and agricultural industries.
Its food service products segment reported strong growth from the health care industry, but that was offset by lower sales elsewhere. The segment provides dishes, cookware and other supplies to restaurants and hospitals.
Carlisle employs about 8,200 people worldwide, including about 80 in Charlotte. The sale of the transportation segment lowered the company’s workforce by about about one-third.
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