Carlisle Companies Reports Second Quarter

CHARLOTTE, N.C.--(Business Wire)--
Carlisle Companies Incorporated (NYSE:CSL) reported net sales of
$863.0 million for the quarter ended June 30, 2008, a 17% improvement
over net sales of $738.8 million in the second quarter of 2007. Sales
increased in all segments and organic sales growth was 8%. The
Construction Materials segment's acquisition of Insulfoam on May 1,
2007 and the Applied Technologies segment's acquisitions of the Dinex
foodservice business on January 25, 2008 and the Carlyle interconnect
solutions business on April 28, 2008, accounted for $60.9 million, or
8%, of sales growth in the second quarter. The impact of foreign
currency exchange rates on net sales growth was less than 1% in the
second quarter 2008.

Operating income of $89.9 million in the second quarter 2008
compared with $84.5 million in the second quarter of 2007. Operating
income grew at 6% despite the raw material cost increases and
production decreases at certain tire and wheel plants that occurred in
the quarter. Income from continuing operations of $56.9 million, or
$0.93 per diluted share, in the second quarter of 2008 increased over
income from continuing operations in the second quarter 2007 of $54.9
million, or $0.88 per diluted share.

David A. Roberts, Chairman, President and Chief Executive Officer,
commented, "Our sales growth in the quarter was good despite softness
in some of our markets. Our Construction Materials and Applied
Technologies segments saw the strongest growth in the quarter. In our
Transportation Products segment, sales growth for specialty trailers
and agriculture and construction tires more than offset tire and wheel
sales volume declines for the consumer outdoor power equipment market.
Strong off-highway brake sales and increased refrigerated truck body
sales contributed to the year-over-year improvement for our Specialty
Products segment. We have also continued to build the resources
required to grow our international sales base. We recently filled key
sales and marketing positions in Asia for five of our businesses.
While modest in total, international sales grew 36% during the second
quarter 2008 over the second quarter 2007 as we see growing demand in
Asia and Europe for many of our products. We expect total Company
organic sales growth for the full year 2008 to approximate our current
growth rate."

"Our earnings during the second quarter continued to be impacted
by increased costs of steel and oil-based commodities. We have
implemented price increases across all of our businesses and will
begin to see some benefit in the third quarter with most of the impact
coming in the fourth quarter. Raw material cost increases continue to
put pressure on our margins. We remain committed to offsetting these
costs through price increases and cost reductions."

"We have begun the implementation of the Carlisle Operating System
which is based on lean sigma techniques. To manage this
implementation, we named Jerry Thomsen as Executive Vice President of
the Carlisle Operating System. Jerry most recently served as President
of Trail King Industries, our trailer business in the Transportation
Products segment. Jerry's proven track record of implementing lean
manufacturing and his leadership skills will help accelerate the
design and implementation of the Carlisle Operating System across our
entire Company."

Roberts continued, "During the second quarter, we completed the
second of two key acquisitions. In April we finalized the purchase of
Carlyle, a leading provider of sophisticated aerospace and network
interconnect solutions. Carlyle and Tensolite have been combined as
Carlisle Interconnect Technologies, which is one of our growth
platforms in the Applied Technologies segment. Our foodservice
business' acquisition of Dinex during the first quarter by the Applied
Technologies segment continues to meet our expectations. The
integration of both acquisitions is progressing and we expect both to
be accretive for 2008. We also continue to look at a number of
acquisition opportunities."

"We are making progress on the divestitures of our power
transmission belt business and our on-highway brake business. We
expect both businesses to be sold by the end of the year and net
after-tax cash proceeds are estimated to exceed $100 million."

Roberts concluded by stating, "Though the current business
environment presents a number of challenges, we also have many
opportunities. We are committed to growing the business and improving
Carlisle's profitability and cash flow."

Construction Materials: Net sales of $441.6 million in the second
quarter 2008 increased 15% over net sales of $383.1 million for the
second quarter 2007 on strong roofing membrane and insulation sales.
The sales increase over 2007 included $12.6 million of net sales from
the Insulfoam acquisition. Despite the strong sales growth for the
quarter, as in the first quarter 2008, operating income was impacted
by increased raw material costs and start up expenses for the
Company's fourth TPO line. Operating income of $54.0 million in the
second quarter 2008 compared with $56.5 million in the second quarter
2007. Cost reduction initiatives and expense containment have helped
and are expected to continue to mitigate some of the raw material cost
increases. The June 1, 2008 price increases implemented across all
Construction Materials product lines are expected to provide a partial
recovery of raw material cost increases as are the price increases
that have been announced for the remainder of 2008. However, rising
raw material costs are expected to negatively impact operating margins
for the balance of the year.

Transportation Products: Net sales of $243.8 million for the
second quarter 2008 increased 4% compared with net sales of $234.6
million in 2007. Softness in the consumer outdoor power equipment
(OPE), high-speed trailer tire and wheel, and styled wheel markets was
offset by growth in the commercial OPE, ATV, and agricultural and
construction tire and wheel markets. Sales growth for specialized and
pneumatic trailers more than offset continued softness in construction
trailers. Operating income of $21.1 million in the second quarter of
2008 compared with operating income of $23.4 million for the same
period 2007. Costs have increased for all of Transportation Products'
key raw materials and most notably for steel, natural and synthetic
rubber, and carbon black. Increased raw material costs are expected to
be a continuing challenge in 2008. Price increases have been
implemented across all product lines experiencing raw material cost
increases. Operating income for the tire and wheel business was also
negatively impacted by reduced production due to the decline in demand
in the markets noted. Organizational improvements and cost reductions
continue to be implemented across the tire and wheel facilities.

Applied Technologies: Second quarter 2008 net sales of $128.5
million increased 63% over net sales of $78.7 million in 2007. The
increase in sales included $48.2 million of net sales from the Dinex
and Carlyle acquisitions. Demand in the aerospace markets contributed
to sales growth for the interconnect technologies business.
International aerospace demand is expected to contribute sales growth
for the remainder of 2008. The foodservice business' sales growth in
national accounts, janitorial/sanitary and international markets more
than offset weakness in the general foodservice market which continues
to see pressure from reduced consumer spending in casual dining.

Second quarter 2008 operating income of $13.4 million increased
37% compared with 2007 operating income of $9.8 million. Raw material
cost increases negatively impacted margins for the foodservice and
interconnect technologies businesses. Price increases have been
implemented and additional price increases are planned during the
second half of 2008. Operating margins were also negatively impacted
by the Boeing 787 program delay. The Company had added resources to
meet Boeing's projected demand for the 787 program. Cost reduction
initiatives are underway for both businesses in this segment.

Specialty Products: Net sales of $49.1 million in the second
quarter of 2008 increased 16% compared to net sales of $42.4 million
for the same period in 2007. Strong global demand in the agriculture
and mining market contributed to record sales for the off-highway
brake business. Demand also improved for the refrigerated truck bodies
business. Second quarter 2008 operating income of $8.7 million
increased 19% compared with operating income of $7.3 million in the
second quarter 2007. This segment was challenged by raw material cost
increases but at rates less than the other segments.

Corporate and Other Expense

Corporate pre-tax expense of $7.3 million for the second quarter
2008 compared with $12.5 million for the second quarter 2007.
Corporate expense in 2007 included pre-tax costs of $4.3 million
related to a change in executive management and $1.1 million for a
terminated acquisition initiative.

Other expense of $0.3 million for the second quarter 2008 compared
with $4.5 million for the second quarter 2007. The Company recorded a
charge of $4.7 million in 2007 related to the facility and management
transition of the Company's U.K. off-highway braking business.

Discontinued Operations

In April 2008, Carlisle announced the planned disposition of Power
Transmission and Motion Control, our belt and on-highway brake
businesses, respectively. Loss from discontinued operations of $2.6
million for the second quarter 2008 compared with a loss of $1.5
million for the second quarter 2007. The loss from discontinued
operations of $93.4 million for the six months ended June 30, 2008
includes an after-tax impairment charge on the assets of these two
businesses of $89.5 million which was included in the Company's
results for the first quarter ended March 31, 2008. Carlisle expects
to complete the disposition of these businesses by the end of 2008.

Net Income

Net income for the second quarter 2008 was $54.3 million, or $0.88
per diluted share, compared to net income of $53.4 million, or $0.85
per diluted share, for the second quarter 2007. Significant raw
material cost increases resulted in minimal bottom line leverage of
strong sales growth.

Year-to-Date

Net sales of $1,515.4 million for the six months ended June 30,
2008 increased 15% as compared with $1,314.4 million for the same
period in 2007 with increased sales across all segments. June 30, 2008
year-to-date income from continuing operations of $85.1 million, or
$1.39 per diluted share, compared with income from continuing
operations of $88.0 million, or $1.41 per diluted share, for the same
period 2007. Net loss for the six months ended June 30, 2008 was $8.3
million, or $0.14 per diluted share, and included after-tax impairment
charges of $89.5 million, or $1.46 per diluted share, related to the
power transmission belt business and on-highway brake business. Both
businesses are reported in discontinued operations. Net income for the
six months ended June 30, 2007 was $90.2 million, or $1.44 per diluted
share.

Cash Flow

Cash flow provided by operations of $86.2 million for the six
months ended June 30, 2008 compared with cash provided by operations
of $190.8 million for the same period 2007. Operating cash flow in
2007 was favorably impacted by the inclusion of $150.0 million related
to the Company's securitization program. There is no impact from the
securitization program on operating cash flow for 2008. Cash used for
working capital of $35.9 million in 2008 compared favorably with cash
used of $89.0 million in 2007. Cash used in investing activities was
$334.9 million in 2008 and included cash used for acquisitions of
$294.8 million in 2008, primarily for the purchases of Dinex for the
foodservice business and Carlyle for the interconnect technologies
business. Cash used in investing activities of $219.4 million in 2007
included the acquisition of Insulfoam for the Construction Materials
segment. Capital expenditures of $40.7 million in 2008 compared with
$40.0 million in 2007. Cash flow provided by financing activities of
$278.1 million in 2008 included borrowings under the Company's credit
facility to fund the Dinex and Carlyle acquisitions. Cash used in
financing activities of $90.7 million in 2007 included the retirement
of $150.0 million in senior notes, partially offset by borrowings to
fund the Insulfoam acquisition.

Conference Call and Webcast

The Company will discuss second quarter 2008 results on a
conference call for investors on Tuesday, July 22, 2008 at 9:00 a.m.
Eastern. The call may be accessed live at
http://www.carlisle.com/investors/conference_call.html, or the taped
call may be listened to shortly following the live call at the same
website location until August 5, 2008.

Forward-Looking Statements

This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. These
statements are based on management's current expectations and are
subject to uncertainty and changes in circumstances. Actual results
may differ materially from these expectations due to changes in global
economic, business, competitive, market and regulatory factors. More
detailed information about these factors is contained in the Company's
filings with the Securities and Exchange Commission. The Company
undertakes no duty to update forward-looking statements.

Carlisle is a diversified global manufacturing company serving the
construction materials, commercial roofing, specialty tire and wheel,
power transmission, heavy-duty brake and friction, heavy-haul truck
trailer, refrigerated truck body, foodservice, and aerospace and test
and measurement industries.

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CARLISLE COMPANIES INCORPORATED
Financial Results
For the periods ended June 30
(In millions, except per share data)
(Unaudited)

Second Quarter Six Months
------------------------- ----------------------------
2008 2007* % Change 2008 2007* % Change
------------------------- ----------------------------
Net sales $ 863.0 $738.8 17% $1,515.4 $1,314.4 15%

Operating
income 89.9 84.5 6% 135.4 135.6 0%

Income from
continuing
operations 56.9 54.9 4% 85.1 88.0 -3%

(Loss) income
from
discontinued
operations (2.6) (1.5) -73% (93.4) 2.2 NM
---------------- -------------------

Net income
(loss) $ 54.3 $ 53.4 2% $ (8.3) $ 90.2 -109%
================ ===================

Basic earnings
(loss) per
share
Continuing
operations $ 0.94 $ 0.89 6% $ 1.40 $ 1.43 -2%
Discontinued
operations (0.04) (0.03) -33% (1.54) 0.03 NM
---------------- -------------------
Net income
(loss) $ 0.90 $ 0.86 5% $ (0.14) $ 1.46 -110%
================ ===================

Diluted
earnings
(loss) per
share
Continuing
operations $ 0.93 $ 0.88 6% $ 1.39 $ 1.41 -1%
Discontinued
operations (0.05) (0.03) -67% (1.53) 0.03 NM
---------------- -------------------
Net income
(loss) $ 0.88 $ 0.85 4% $ (0.14) $ 1.44 -110%
================ ===================

SEGMENT
FINANCIAL DATA
(Continuing
Operations)
(In millions)

Second Quarter 2008 2007*
------------------------- ----------------------------
Sales Opr. % Sales Sales Opr. % Sales
Income Income
------------------------- ----------------------------
Construction
Materials $ 441.6 $ 54.0 12.2% $ 383.1 56.5 14.7%
Transportation
Products 243.8 21.1 8.7% 234.6 23.4 10.0%
Applied
Technologies 128.5 13.4 10.4% 78.7 9.8 12.5%
Specialty
Products 49.1 8.7 17.7% 42.4 7.3 17.2%
---------------- -------------------
Subtotal 863.0 97.2 11.3% 738.8 97.0 13.1%
Corporate - (7.3) - (12.5)
---------------- -------------------
Total $ 863.0 $ 89.9 10.4% $ 738.8 $ 84.5 11.4%
================ ===================

Six Months 2008 2007
------------------------- ----------------------------
Sales Opr. % Sales Sales Opr. % Sales
Income Income
------------------------- ----------------------------
Construction
Materials $ 723.7 $ 69.0 9.5% $ 609.4 $ 76.0 12.5%
Transportation
Products 485.8 45.0 9.3% 475.2 51.4 10.8%
Applied
Technologies 219.5 23.3 10.6% 149.8 17.3 11.5%
Specialty
Products 86.4 13.5 15.6% 80.0 12.0 15.0%
---------------- -------------------
Subtotal 1,515.4 150.8 10.0% 1,314.4 156.7 11.9%
Corporate - (15.4) - (21.1)
---------------- -------------------
Total $1,515.4 $135.4 8.9% $ 1,314.4 $ 135.6 10.3%
================ ===================

* 2007 Figures have been restated to reflect discontinued operations
and current segment reporting.
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CARLISLE COMPANIES INCORPORATED
Consolidated Statement of Earnings
For the periods ended June 30
(In millions except per share data)
(Unaudited)

Second Quarter Six Months
------------------------ ----------------------------
2008 2007 % Change 2008 2007 % Change
------------------------ ----------------------------
Net sales $863.0 $738.8 16.8% $1,515.4 $1,314.4 15.3%
------------------------ ----------------------------
Cost and
expenses:
Cost of goods
sold 688.9 581.2 18.5% 1,217.6 1,040.1 17.1%
Selling and
administrative
expenses 80.9 70.1 15.4% 155.8 132.7 17.4%
Research and
development
expenses 3.3 3.0 10.0% 6.6 6.0 10.0%
------------------------ ----------------------------

Operating income 89.9 84.5 6.4% 135.4 135.6 -0.1%

Other expense
(income), net 0.3 4.5 -93.3% (0.8) 2.4 NM
Interest
expense
(income), net 5.1 (2.1) -342.9% 9.2 1.9 384.2%
------------------------ ----------------------------

Earnings before
income taxes 84.5 82.1 2.9% 127.0 131.3 -3.3%

Income tax
expense 27.6 27.2 1.5% 41.9 43.3 -3.2%
------------------------ ----------------------------
0.3 0.3
Income from
continuing
operations 56.9 54.9 3.6% 85.1 88.0 -3.4%
------------------------ ----------------------------

(Loss) income
from
discontinued
operations (2.6) (1.5) 73.3% (93.4) 2.2 NM
------------------------ ----------------------------

Net income
(loss) $ 54.3 $ 53.4 1.7% $ (8.3) $ 90.2 -109.3%
======================== ============================

Basic earnings
(loss) per
share
----------------
Continuing
operations $ 0.94 $ 0.89 5.6% $ 1.40 $ 1.43 -2.1%
Discontinued
operations (0.04) (0.03) 33.3% (1.54) 0.03 NM
------------------------ ----------------------------
Basic earnings
(loss) per
share $ 0.90 $ 0.86 4.7% $ (0.14) $ 1.46 -109.6%
======================== ============================

Diluted earnings
(loss) per
share
----------------
Continuing
operations $ 0.93 $ 0.88 5.7% $ 1.39 $ 1.41 -1.4%
Discontinued
operations (0.05) (0.03) 66.7% (1.53) 0.03 NM
------------------------ ----------------------------
Diluted earnings
(loss) per
share $ 0.88 $ 0.85 3.5% $ (0.14) $ 1.44 -109.7%
======================== ============================

Average shares
outstanding -
in millions
Basic 60.5 61.8 60.6 61.7
--------------- -------------------
Diluted 61.4 62.6 61.4 62.6
--------------- -------------------

Dividends $ 8.8 $ 8.4 $ 17.7 $ 16.8
------------------------ ----------------------------
Dividends per
share $0.145 $0.135 7.4% $ 0.290 $ 0.270 7.4%
------------------------ ----------------------------

NM = Not
Meaningful
*T

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CARLISLE COMPANIES INCORPORATED
Comparative Condensed Consolidated Balance Sheet
(In millions)

June 30, December 31,
2008 2007
------------------------
(Unaudited)
Assets
Current Assets
Cash and cash equivalents $ 118.2 $ 88.4
Receivables 478.8 333.0
Inventories 452.2 422.0
Prepaid expenses and other 63.3 68.8
Current assets held for sale 89.8 110.9
------------------------
Total current assets 1,202.3 1,023.1
------------------------
Property, plant and equipment, net 488.4 463.9
Other assets 583.4 418.7
Non-current assets held for sale 50.1 83.1
------------------------
Total Assets $ 2,324.2 $ 1,988.8
========================

Liabilities and Shareholders' Equity
Current Liabilities
Short-term debt, including current maturities $ 130.2 $ 58.6
Accounts payable 204.3 132.5
Accrued expenses 189.4 166.5
Current liabilities associated with assets
held for sale 29.1 30.6
------------------------
Total current liabilities 553.0 388.2
------------------------
Long-term debt 493.1 262.8
Other liabilities 186.1 218.9
Shareholders' equity 1,092.0 1,118.9
------------------------
Total Liabilities and Shareholders' Equity $ 2,324.2 $ 1,988.8
========================
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CARLISLE COMPANIES INCORPORATED
Comparative Condensed Consolidated Statement of Cash Flows
For the Six Months Ended June 30
(In millions)
(Unaudited)
2008 2007
-----------------
Operating activities
Net (loss) income $ (8.3) $ 90.2
Reconciliation of net earnings to cash flows:
Depreciation and amortization 35.4 32.4
Non-cash compensation 6.5 9.2
Excess tax benefits from share based
compensation (0.1) (3.0)
(Earnings) loss from equity and other
investments (0.3) 0.6
Loss on writedown of assets 124.3 4.0
Foreign exchange gain (0.5) (0.3)
Deferred taxes (34.7) 1.4
Loss (gain) on sale of property and
equipment, net 0.1 (4.9)
Receivables under securitization program - 150.0
Working capital (35.9) (89.0)
Other (0.3) 0.2
-----------------
Net cash provided by operating activities 86.2 190.8
-----------------
Investing activities
Capital expenditures (40.7) (40.0)
Acquisitions, net of cash (294.8) (183.3)
Proceeds from sale of property and equipment, net 0.3 4.0
Other 0.3 (0.1)
-----------------
Net cash used in investing activities (334.9) (219.4)
-----------------
Financing activities
Net change in short-term debt and revolving
credit lines 71.9 (83.3)
Proceeds from long-term debt 330.0 0.5
Reductions of long-term debt (100.0) -
Dividends (17.7) (16.8)
Excess tax benefits from share based
compensation 0.1 3.0
Treasury shares and stock options, net (1.4) 5.9
Treasury share repurchases (4.8) -
-----------------
Net cash provided by (used in) financing
activities 278.1 (90.7)
-----------------
Effect of exchange rate changes on cash 0.4 -
-----------------
Change in cash and cash equivalents 29.8 (119.3)
Cash and cash equivalents
Beginning of period 88.4 144.0
-----------------
End of period $ 118.2 $ 24.7
=================
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Carlisle Companies Incorporated
Carol P. Lowe, 704-501-1100
Vice President and Chief Financial Officer
http://www.carlisle.com

Copyright Business Wire 2008