* Q2 EPS $0.62 vs est $0.65
* Rise in raw material costs continues
* Shares down as much as 12 pct
(Adds details, analyst comments; updates share movement)
BANGALORE, July 27 Diversified manufacturer
Carlisle Cos Inc (CSL.N) posted a quarterly profit below market
estimates, due to higher raw material costs, and said it
continues to face higher input costs, sending shares down as
much as 12 percent.
"Our most significant EBIT challenge will be the
uncertainty regarding raw material costs," CEO David Roberts
said in a statement. "The impact of raw materials is the
He added the company had not seen any relief on the horizon
and was implementing cost cuts and price increases to offset
FBR Capital Markets said higher raw material costs, charges
related to tire capacity restructuring in China and weak
pricing hurt margins during the quarter.
"If the raw material pricing spread does not improve, it
could be a challenge for the company to maintain margins at
last year's level," the brokerage said in a note.
Carlisle's total EBIT margin for the quarter fell to 9
percent from the year-ago 13 percent.
FBR, which rates the company's stock "underperform,"
expects its commercial construction market -- that contributes
more than 57 percent to Carlisle's total sales -- to perform
negatively in fiscal 2011.
For the second quarter, Carlisle net income was $38.6
million, or 62 cents a share, compared with $55.5 million, or
90 cents a share, a year ago.
Revenue rose 11 percent to $709.4 million.
Analysts on average were expecting the company to earn 65
cents a share, before special items, on revenue of $666.1
million, according to Thomson Reuters I/B/E/S.
Shares of the Charlotte, North Carolina-based company were
down $4.35 at $34.80 Tuesday afternoon on the New York Stock
Exchange. They touched a low of $34.49 earlier in the session.
(Reporting by Swati Chitnis and Fareha Khan in Bangalore;
Editing by Vyas Mohan and Don Sebastian)