Carlisle Companies Incorporated (NYSE:CSL) Q4 2018 Earnings Conference Call Transcript

Feb 07, 2019 • 05:00 pm ET


Carlisle Companies Incorporated (NYSE:CSL) Q4 2018 Earnings Conference Call Transcript


Loading Event

Loading Transcript


Good afternoon. My name is Sheryl and I will be conference operator today. At this time, I would like to welcome everyone to the Carlisle Companies Fourth Quarter 2018 Earnings Conference Call. (Operator Instructions) Jim Giannakouros, Vice President of Investor Relations. You may begin you conference.

Jim Giannakouros

Thank you, Sheryl. Good afternoon everyone and welcome to Carlisle's fourth quarter 2018 earnings conference call. We released our fourth quarter financial results after the market closed today and you can find both our press release and earnings call slide presentation on our website at in the Investor Relations section.

Discussing the results and our updated outlook today are Chris Koch, President and CEO and Bob Roche, our Chief Financial Officer. Today's call will begin with Chris discussing our progress towards Vision 2025 and our plans for 2019. Bob will discuss Carlisle's fourth quarter operating and financial performance. Following our prepared remarks, we will open up for questions.

Now, please refer to Slide 2 of our presentation where we note that certain statements made during this call may be forward-looking and actual results may differ materially from our expectations due to a number of risk factors. A discussion of some of the risks and uncertainties that may affect our results are provided in our press release, and in our SEC filings on Forms 10-K and 10-Q. Those considering an investment in Carlisle should read these statements carefully along with reviewing the reports we file with the SEC before making any investment decision.

With that, I'd turn the call over to Chris.

D. Christian Koch

Thanks, Jim. Good afternoon, everyone. Please turn to slide 3 of the presentation. Carlisle had an excellent fourth quarter and strong finish to 2018. We made solid progress towards our vision 2025 goals of $8 billion in revenue, 20% operating income and 15% ROIC, which we anticipate will generate $15 in EPS, more than double the earnings achieved in 2018.

As we move into 2019, we will continue to build on the foundation we established in 2018 and we remain focused on driving 5% organic growth with operational leverage, utilizing the Carlisle Operating System and its continuous improvement culture to drive efficiencies, building scale with synergistic acquisitions, continuing to invest in exceptional talent and deploying over $3 billion into capital expenditures, share repurchases and dividends.

In the fourth quarter, we again drove organic revenue growth in excess of our targeted goal of 5%. We did this with sustained price leadership at CCM, capturing share in healthy aerospace markets at CIT, strengthening our market share and price position at CFT and through price recovery efforts and sustained positive momentum in the off-highway end markets at CBF.

In the fourth quarter operating income rose 22.7%, almost three times our revenue growth, a further indication that the restructuring efforts, pricing discipline and increased focused on productivity that we instituted over the last two years are paying off. The Carlisle Operating System remains core to our culture and is an integral process for driving efficiencies throughout our