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Jun 30, 2020
Carlisle Q2 2020 Earnings Report
Reported EPS of $1.36, including $0.25 of costs attributable to restructuring, M&A, and COVID-19 related plant closures and absences, with CCM delivering 18.7% operating income margin despite sales decline.
Key Takeaways
Carlisle Companies reported a challenging second quarter due to the COVID-19 pandemic, but Vision 2025 goals remain intact. The company saw a revenue decline of 22.1% year-over-year, but CCM delivered a strong operating income margin. The balance sheet remains strong with $738 million in cash.
Vision 2025 goals remain intact despite challenging quarter.
Reported EPS of $1.36 includes $0.25 of costs related to restructuring, M&A, and COVID-19.
CCM delivered 18.7% operating income margin despite sales decline.
Balance sheet remains strong, with $738 million in cash and untapped revolver of $1 billion.
Revenue by Segment
Forward Guidance
Carlisle enters the second half of 2020 cautiously optimistic, with confidence in their ability to deliver longer-term on Vision 2025, but uncertainties remain around the COVID-19 pandemic.
Positive Outlook
- Strong balance sheet.
- Strong cash flow generating capabilities.
- Disciplined and opportunistic capital deployment strategy.
- Ongoing actions to restructure and rightsize manufacturing footprint.
- Expect to generate free cash flow conversion in excess of 125% in 2020.
Challenges Ahead
- COVID-19 pandemic continues to negatively impact operations.
- Uncertainties remaining around the pandemic, including the length and severity of the economic downturn.
- Continued tension with China.
- Choppy path to ultimate recovery is likely.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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