Carlisle Companies Reports a 61% Increase in Fourth Quarter Earnings before Interest and Income Taxes from Continuing Operations

Business Wire, Feb 9, 2006

CHARLOTTE, N.C. -- Carlisle Companies Incorporated (NYSE:CSL) reported earnings before interest and income taxes ("EBIT") from continuing operations of $44.7 million for the fourth quarter 2005, an increase of 61% above EBIT of $27.7 million for the same period 2004. Richmond McKinnish, Carlisle President and CEO commented, "Carlisle ended 2005 with a strong fourth quarter. We are optimistic that 2006 will be another successful year. Our guidance for income from continuing operations in 2006 is in the range of $4.85 to $5.05 per diluted share."

Income from continuing operations of $26.5 million, or $0.86 per diluted share for the quarter ended December 31, 2005, compared to $19.1 million or $0.61 per diluted share for the quarter ended December 31, 2004. Fourth quarter 2005 income from continuing operations was negatively impacted by an after-tax charge of $0.08 per diluted share related to a lease arrangement for a closed facility in the Diversified Components segment. Income from continuing operations for the fourth quarter 2004 included a tax benefit of $0.09 per diluted share related to favorable state and federal tax settlements that was partially offset by a $0.06 per diluted share charge for the write-off of assets associated with the sale of the spring brake business in the Diversified Components segment.

Net sales of $534.2 million in the fourth quarter 2005 were $43.6 million, or 9%, higher than net sales of $490.6 million in the fourth quarter of 2004. Strong organic sales growth in the Construction Materials segment was partially offset by weaker demand in the Industrial Components segment. Acquisitions in the Diversified Components segment contributed $11.2 million to the quarter-over-quarter increase in net sales.

EBIT from continuing operations for the year ended December 31, 2005 was $209.5 million, an increase of 21% above 2004 EBIT of $173.5 million. Income from continuing operations for the full year 2005 of $133.3 million, or $4.29 per diluted share, represented a 21% increase over $110.6 million, or $3.52 per diluted share, in 2004. Included in the 2005 results was a $0.10 per diluted share benefit for a reduction in income tax liabilities as a result of final settlement of the Company's 2002 and 2003 federal tax filings and settlement of certain state tax filings from 1997 - 1999. A gain of $0.08 per diluted share for proceeds received from the favorable resolution of certain legal actions initiated by the Company was also included in the full year 2005 income from continuing operations. Offsetting these gains was the year-over-year reduction in income from continuing operations of $0.14 per diluted share at Johnson Truck Bodies which was partially attributable to a labor strike that concluded in October 2005. Income from continuing operations for the full year 2004 was favorably impacted by the aforementioned fourth quarter 2004 income tax benefit of $0.09 per diluted share, partially offset by the $0.06 per diluted share charge related to the sale of the spring brake business.

Net sales of $2.21 billion in 2005 were 11% above 2004 net sales of $2.00 billion. Organic sales growth of $181.0 million accounted for 86% of the total growth. Most of the year-over-year improvement was in the Construction Materials and Diversified Components segments. Acquisitions in the Industrial Components and Diversified Components segments contributed $28.8 million of growth in net sales.

Fourth Quarter and Full Year Segment Results

In conjunction with the decision to exit its Carlisle Systems & Equipment businesses in the fourth quarter 2005, the Company reorganized its five operating segments into three segments; Construction Materials, Industrial Components and Diversified Components. The following comments exclude the impact of discontinued operations.

Construction Materials: Net sales of $231.1 million in the fourth quarter were 18% above the fourth quarter 2004 net sales of $196.1 million with strong demand across most product lines. Fourth quarter 2005 EBIT of $35.8 million was 37% above fourth quarter 2004 EBIT of $26.2 million. Net sales of $865.7 million for the full year 2005 were 20% above 2004 with growth in all product lines and higher selling prices, which offset increased raw material costs. Insulation revenues were a strong contributor to the growth as demand for roofing systems increased and the benefits from the first full year of sales at the Lake City, FL plant and a partial year of sales at the new Terrell, TX plant were realized. EBIT in 2005 of $131.8 million was 39% above 2004 EBIT of $94.5 million. The improvement in EBIT was the result of increased revenues for roofing systems, insulation products and coatings and waterproofing products. The Company's equity share of earnings at its European roofing joint venture, Icopal, was $2.0 million for the fourth quarter and $2.5 million for the full year 2005 compared to $2.1 million for the fourth quarter and $2.4 million for the full year 2004.