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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.
Carlisle
Carlisle
Carlisle Revenue by Segment
Revenue by Segment
CCM Revenue
CapyFin.com 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.
- Unable to predict the full extent or duration of these events on Carlisle.