FOOL CONFERENCE CALL SYNOPSIS*
By Greg Markus (TMF Boring)

Carlisle Companies
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250 S. Clinton St., Suite 201
Syracuse, NY 13202
(315) 474-2500

ANN ARBOR, Mich. (July 21, 1997) /FOOLWIRE/ -- Carlisle Companies is a diversified manufacturer of products serving three major markets: construction materials, transportation products, and general industry. On July 17 the company reported second quarter sales of $337.4 million, an increase of 28% compared to the same period a year ago. Earnings of $21.0 million, or $0.68 per share, were also a 28% increase over earnings of $16.4 million, or $0.53 per share, for the second quarter of 1996.These were record quarterly results for Carlisle.

SECOND QUARTER OVERVIEW. The Company's second quarter results were driven by continued record performance from the transportation products and general industry segments, combined with another strong quarter from the construction materials segment. Approximately 60% of the increase in sales was due to recent acquisitions, particularly the engineered plastics division of JOHNSON CONTROLS <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: JCI)") else Response.Write("(NYSE: JCI)") end if %> but also the Hartstone and Scherping acquisitions. The remaining 40% was due to internal growth -- in Carlisle Tire & Wheel, the food service division, and in the aircraft wire division, in particular. Operating earnings for the quarter increased 27% to $8.7 million; roughly $5.0 million of that came from acquisitions, with the remainder coming from internal growth at a rate of about 11%. It is getting more difficult to separate results due to acquisitions from those due to internal growth as Carlisle continues to integrate recent acquisitions into its ongoing division operations. During the quarter, Carlisle made several small acquisitions in the brake business and in the tire and wheel business.

SIX MONTH RESULTS. For the six months ended June 30, 1997, sales totaled $625.2 million compared to $487.4 million in 1996, a 28% increase. Earnings on a year-to-date basis were $1.11 a share, a 26% increase over earnings of $0.88 a share last year.

BALANCE SHEET. The balance sheet reflects the increased level of sales. Current assets, ex-cash, grew at a 25% rate, which reflects improved working capital management. Working capital was $207 million at June 30, 1997 compared to $203.3 million at March 31, 1997 and $135.2 million at June 30, 1996. Number of days sales tied up in accounts receivable and inventories declined to 91 days from 98 days a year ago. Long-term debt/capital ratio is approximately 40%. That should trend down to around 38% by year's end. Carlisle's long-term objective is for debt to equal approximately one-third of total capitalization.

CONSTRUCTION SEGMENT. This segment had a record quarter, with sales of $87.3 million. After eliminating sales of Carlisle's engineered metal roofing business, which was sold in Feb. 1997, sales increased 7% over 1996 while segment earnings increased 13%.

TRANSPORTATION SEGMENT. Sales in this segment increased 55% over the year ago quarter, to $139.4 million. Segment earnings improved 54%. The engineered plastics acquisition from Johnson Controls is performing very well, especially considering that the quarter was affected by labor strikes among Big-3 auto makers. Carlisle is exposed mostly to the sport utility vehicle and light truck platforms, and those platforms continue very strong. The strengthening of the dollar against European currencies impacted earnings of this segment somewhat. The specialty trailer area has been a pleasant surprise; management hadn't expected it to be as strong as it is, and the division is bumping up against capacity constraints and looking for ways to alleviate that constraint. Trail-King has record profits and record profit margins. The dairy tanker business is improving. The perishable cargo container area has been a problem in recent quarters due to Chinese manufacturing competition of unproved quality. During the quarter, however, the Chinese government imposed certain price increases on industries to improve their profitability. That has enabled Carlisle to increase its prices by 10%, which should have a favorable effect in the second half of the year. The wire and cable business, which is split between aerospace and high-speed data transmission, has been outstanding, with earnings up 100% and margins doubling in the last 18 months. The company is running up against capacity constraints here and is looking to expand. Altogether, the balance of the year for the Transportation Segment should pretty much parallel what occurred in the first half. Looking to 1998 and 1999, margins should be at least what they are now, and sales volume should grow very strongly. Backlogs of business already booked increase our confidence about this.

GENERAL INDUSTRY. Segment sales were up 28% in the quarter to $110.7 million. Segment earnings increased 23%. On a year-to-date basis, sales increased 27% and earnings increased 28%.

GENERAL INDUSTRY: SPECIALTY TIRE AND WHEELS. Carlisle Tire & Wheel just recorded another solid quarter, up 28% in sales and earnings. The company's strategy of aggressively increasing market share in the specialty tire and wheel market is beginning to bear fruit. The company announced two acquisitions during the quarter, Neilson Wheel and City Machine, and announced today the intention two acquire two units of the Canadian company Electra: Conestoga and Wheeltech. Those two units have over $50 million in annual sales and provide Carlisle with an entrance into the Canadian specialty wheel market.

GENERAL INDUSTRY: FOODSERVICE. The foodservice products division of the General Industry segment is taking market share from competitors. Sales in this division increased 24% over last year's second quarter., while earnings increased 30%. The foodservice industry is growing 2% to 3% per year, but Carlisle's division is growing at a much faster pace as it expands its lines. As the foodservice industry becomes more and more consolidated, customers want vendors who can offer the broadest line of products. Carlisle now has the broadest product line in the industry and can offer full service to customers. Export sales are also growing well, with a record quarter and the opening of a number of new markets -- South Africa and Tunisia, for example. The company's joint-venture in China is now manufacturing foodservice products and shipping them throughout the Pacific Rim. The Hartstone business unit has recently opened an additional plant because of the need for additional capacity -- perhaps the first new ceramics dinnerware factory that has opened in the U.S. in the last 50 years. Hartstone offers handpainted ceramic dinnerware which is very popular with Americana collectors and in the "gifted housewares" market -- such as wedding gifts. Hartstone's costs are extremely competitive because it makes use of state-of-the-art technology.

OVERALL GROWTH PROJECTION. Carlisle's rate of growth has been well over 20% per year and that should continue. Carlisle expects to be able to do that without returning to the equity market to raise additional capital.

* A Fool conference call synopsis represents an effort to highlight the salient points of a conference call and should not be taken as an authoritative accounting or transcription of the entire event. Note: Statements made by a company other than historical information may constitute forward-looking statements for which the company can claim protection under the Safe Harbor Act. Please consult the company's filings with the SEC for information on risk factors which might cause actual results to differ materially from the information contained in these forward-looking statements.