Carlisle Companies Reports First Quarter Earnings

Carlisle Companies Incorporated (NYSE:CSL) today announced its first quarter 2021 financial results.

• Reported consolidated first quarter revenue of $1.0 billion, flat to first quarter 2020
• First quarter diluted EPS of $0.97; adjusted diluted EPS of $1.47
• Share repurchases continued in the first quarter, totaling 984 thousand shares for $150 million
• CCM delivered strong year-over-year sales growth of 6.3%
• Announced $60 million investment in a new Polyiso Insulation facility

Comments from Chris Koch, Chairman, President and Chief Executive Officer

"Reflecting on the past twelve months of uncertainty, I take great pride in how the Carlisle team handled the immediate threats born out of the COVID-19 pandemic, ensuring that strict health and safety protocols were in place and followed, which has led to a low infection rate at Carlisle across the globe. This reaction enabled an early, proactive focus on positioning our businesses for an economic rebound, with Vision 2025 providing the clear direction and consistency of mission to guide our efforts. We will leverage this momentum as we accelerate into the recovery in 2021 and beyond. One year removed from the pandemic's initial impact, we believe we are a stronger company and are well positioned to meet our center-led Vision 2025 objectives, supported by confidence in the fundamentals of our businesses and our commitment to our customers through the Carlisle Experience.

Due to strength in our CCM, CFT, and CBF businesses, our consolidated first quarter revenue was flat, while adjusted EPS declined year-over-year given lower profitability at CIT driven by the well-publicized impact of the COVID pandemic on the commercial aerospace industry. The first quarter of 2021 demonstrated yet again Carlisle's ability to navigate varying economic cycles while delivering strong financial performance. We continued to execute on our long-term strategies, including: maintaining the highest standards in providing the Carlisle Experience to our customers, investing in high-return projects to drive organic growth across our core platforms, working an active pipeline of acquisition targets, returning capital to shareholders in the form of share repurchases and dividends, continuing on our ESG journey, and demonstrating the exceptional and sustainable earnings power of the Carlisle business model.

CCM continues to benefit from the strong re-roofing cycle in the United States. In the first quarter, CCM delivered mid-single digit growth, demonstrating the continued resilience of this demand. Energy-efficient building envelope products and solutions for nonresidential buildings are non-discretionary and can only be deferred for so long. This is highlighted by the inclement weather experienced in North America in February only temporarily impacting sales at CCM, with March volumes more than offsetting during the quarter.

On April 20th, Carlisle announced plans to invest more than $60 million to build an innovative, state-of-the-art manufacturing facility in Sikeston, Missouri. Consistent with Carlisle’s strategy to invest in high-returning businesses, the plant will support organic growth initiatives and also create jobs for the city of Sikeston and surrounding communities. The building will be constructed in accordance with the latest advances in LEED building and ESG principles. Additionally, we expect that this central location will both reduce the carbon footprint of CCM’s supply chain and improve material lead times for customers in this region where the use of insulation in the building envelope is steadily increasing. At this new facility, CCM will manufacture energy-efficient polyiso insulation, which not only lowers energy costs for building owners and operators, but also helps reduce a building’s GHG emissions.

While CCM generated most of our earnings in the first quarter of 2021, our smaller businesses exhibited significant progress. CIT's results were in line with subdued expectations given the ongoing disruption in the commercial aerospace market. Given improving leading indicators, which include expanding vaccine rollout, increasing numbers of domestic travelers, growing aircraft manufacturers' backlogs, and improvements in CIT's order book, we believe CIT is positioned for sequential improvement going forward. Taken together with the improving backlog in our Medical Technologies business, we are optimistic CIT will return to growth in the second half of 2021.

CFT delivered improved revenue and operating income performance in the quarter driven by a commitment to new product introductions, price discipline and integrating our newer platforms. With end markets strengthening, especially general industrial, the team continues to execute on Vision 2025 initiatives and focus on enhancing our customers' experience.

At CBF, the significant actions taken to improve the business over the past few years are yielding expected results. In addition to these actions, demand for off-highway vehicles and equipment, especially in Agricultural and Construction markets, is helping to drive CBF's recovery. CBF has leveraged this volume growth to deliver positive and accelerating earnings. As a result, we are optimistic that 2021 will prove to be an inflection year for CBF as it emerges from a multi-year down cycle. Additionally, we view any future infrastructure legislation in the U.S. as another positive driver for CBF.

I am also pleased that our ESG efforts continue to gain momentum. We recently published our 2020 Sustainability Report in conjunction with the launch of a new, award-winning ESG focused website. These launches collectively share details of Carlisle’s century-long journey