Carlisle Companies (CSL), as a diversified manufacturing company, has recorded an 35.14 percent plunge in profit for the quarter ended Mar. 31, 2014, due to a loss from discontinued operations.
The company earned $35.80 million or $0.55 a share in the first-quarter, compared with $55.20 million or $0.85 a share a year ago. Analysts on average had predicted net income of $0.54 a share.
Revenue during the first-quarter grew 3.30 percent to $650.40 million from $629.60 million in the last year period.
Gross margin expanded by 71 basis points over the previous year period to 24.92 percent.
Total expenses as a percentage of revenues decreased to 90.31 percent from 91.20 percent in the same period last year. That resulted in improvement of 89 basis points in operating margin to 9.69 percent.
The company disclosed operating income of $63 million, compared with an operating income of $55.40 million in the last year period.
David A. Roberts, chairman, president and chief executive officer, said, ''Despite the severe winter weather negatively impacting the quarter, we achieved sales growth in all our segments and leveraged that growth to a 14% EBIT improvement. Our EBIT margin grew 90 basis points to 9.7% for the quarter. Highlighting the quarter was our performance at Carlisle Interconnect Technologies (CIT). CIT achieved an exceptional 20.3% EBIT margin, a record for CIT as well as the highest margin performance in any Carlisle segment since 2008.''
Roberts concluded by stating, ''For the full year 2014, we continue to plan for high single-digit percentage sales growth, primarily driven by growth at CCM and CIT, and expect to generate EBIT leverage from our sales growth. Capital expenditures for the year are expected to be approximately $119 million. Our balance sheet continues to be strong and we are solidly positioned to pursue our long-term growth objectives.''
Cash flow
Carlisle Companies has generated cash of $51.30 million from operating activities during the quarter, up by 35 percent or $13.30 million when compared with the last year period. It has generated 7.89 cents of operating cash flow in every sales dollar for the quarter, up from 6.04 cents for the same period last year.
The company has spent $23.10 million in cash to meet investing activities during the quarter, as against cash outgo of $26.50 million in the year period. It has made net capital expenditure of $24.10 million during the quarter, which was lower by 12.83 percent or $3.40 million from a year ago.
The company's free cash flow accounted for 54.97 percent of operating cash flow for the quarter, compared with 30.26 percent in the last year period.
The company has spent $3 million in cash to meet financing activities during the quarter, as against cash outgo of $7.50 million in the last year period.
The company's cash dividend payment increased 10.94 percent or $1.40 million to $14.20 million. Dividend payment accounted for 27.68 percent of operating cash flow for the quarter, of Mar. 31, 2014 from 33.68 percent in the same period previous year.
As on Mar. 31, 2014, Carlisle Companies's cash balance stood at $779.70 million, up by 572.16 percent or $663.70 million from Mar. 31, 2013.
Working Capital
Carlisle Companies witnessed an increase in the working capital over the year. It stood at $1203.90 million as at Mar. 31, 2014, up by $422.20 million or 54.01 percent from $781.70 million on Mar. 31, 2013. The company's current ratio increased to 4.14 as at Mar. 31, 2014 from 2.80 on Mar. 31, 2013.
Debt Position
The company has witnessed a decrease in long-term debt over the last year. As at Mar. 31, 2014, the company's long-term debt stood at $751.10 million, down by 0.19 percent or $1.40 million from Mar. 31, 2013.
The company's total debt accounts for 21.18 percent of total assets on Mar. 31, 2014, compared with 21.78 percent on Mar. 31, 2013.
Shares of Carlisle Companies rose by $3.63 or 4.59 percent to close at $82.77 on Tuesday.
