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

Carlisle Companies Inc.
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250 S. Clinton St. Syracuse, NY 13202 (315) 474-2500
http://www.carlisle.com

ANN ARBOR, Mich. (July 16, 1998) /FOOLWIRE/ -- Carlisle Companies is a diversified manufacturer of products serving three major markets: construction materials, transportation products, and general industry.

Second Quarter Results. The company today reported record sales and earnings for the second quarter of 1998, ended June 30. Sales of $395.6 million reflect a 17% increase over 1997 second quarter sales of $337.4 million. Net earnings rose 17% to $24.6 million, or $0.80 a share (diluted) versus 1997 quarterly earnings of $21.0 million, or $0.68 a share, surpassing previous records at Carlisle for sales and earnings achieved in a quarter. Moreover, the vast majority of the increases in sales and earnings come from internal growth rather than from acquisition activity.

Six Month Results. For the six months ended June 30, 1998, net earnings totaled $43.5 million, or $1.42 a share on $758.7 million in sales. This compares with 1997 year-to-date sales of $625.2 million and net earnings of $34.4 million, or $1.11 a share.

Financial Highlights. Receivables are down relative to sales levels. Inventories have increased relative to total sales. Some of the inventory increase is due to the integration of inventory from acquisitions made in tire and wheel operations, some is related to the acquisition of a brush business in the foodservice operations, some is a function of the GM strike, and some is related to the late closing of some sales at the end of the quarter. Working capital was $251 million at June 30, 1998 compared to $152.6 million at March 31, 1998 and $207 million at June 30, 1997. The increase in working capital from March 31, 1998, is primarily due to the repayment of short-term borrowings in May 1998 through the issuance of $100.0 million 10-year public debt at a coupon of 6.7%.

Construction Materials. Segment sales increased 9% to $95.2 million. Strong sales in the domestic roofing markets and increased sales in the coatings and waterproofing operations were primarily responsible for the increase. Pre-tax earnings of $15.3 million for the second quarter of 1998, compared to 1997 second quarter earnings of $14.1 million. Despite margin pressures due to competitiveness in the marketplace and increased raw material costs, this segment continues to report strong gains in sales and earnings as Carlisle has increased its market share "quite handsomely."

Transportation Products. Sales in the segment increased 11% in the second quarter of 1998, to $154.7 million. Pre-tax earnings increased 17% to $14.3 million in the second quarter of 1998 versus $12.2 million in 1997. Record market demand for Carlisle's heavy-duty friction products contributed to the favorable sales and earnings increase over 1997 levels. The company's specialized trailer operations experienced continued strong demand, particularly in the construction markets it serves, benefiting from increased spending on highway maintenance and repair in the U.S. Sales and earnings at the wire operations continue to be led by the sale of the company's patented Tufflite wire to the aerospace industry. Year-over-year results of the perishable cargo operations continue to improve, reflecting progress in the container manufacturing operations as well as repeated positive performance at Carlisle's container leasing operations.

Second quarter sales and earnings at Carlisle's Engineered Products operations were affected by the UAW strikes at General Motors <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: GM)") else Response.Write("(NYSE: GM)") end if %>. The impact was $0.02 per share, as GM represents approximately 4% of Carlisle's total revenues. Carlisle is implementing measures to minimize the impact of the work stoppage, and management does not see this event as constituting a significant impediment going forward.

General Industry. Segment sales increased 32% in the second quarter of 1998, to $145.7 million. Pre-tax earnings increased 23% to $18.6 million. Sales at Carlisle's tire and wheel operations are benefiting from increased volume to OEM and replacement markets serving the trailer, lawn and garden, and golf car markets. The quarterly results also reflect continued improvements in the integration of several acquisitions made in 1997 by the tire and wheel operations. Sales and earnings of Carlisle's specialty electronics cable and assembly operations benefited from the acquisition of a specialty cable manufacturer in March 1998, and the overall growth of the high-speed data and electronics markets. Sales at Carlisle's foodservice and brush manufacturing operations increased over 1997 levels, but margins were negatively impacted by lower-than-expected sales volumes at the ceramics operations as well as by continued competitive pricing in the foodservice business. Consolidation among U.S. dairy processors dampened sales and earnings of the company's stainless steel processing equipment operations.

Asian Impact. Carlisle has seen very little direct impact of weakness in Asian economies on the company's sales, mostly because Carlisle has delayed ramping up its Asian marketing efforts as aggressively as originally intended. There has been some indirect impact as Asian competitors in certain segments, primarily foodservice equipment and tires and wheels, have attempted to take away business through lower pricing. Carlisle has responded successfully, partly by reducing prices, partly due to its advantage in providing excellent customer service, and partly by offering lower-priced products made at Carlisle's Asian sources.

Capital Expenditures. Carlisle is continuing its unusually large capital improvement program for 1998, with expenditures of $52 million through the first six months of the year. Some of the capital expenditures of the originally planned $80-$90 million program may be delayed or deferred somewhat. Capital expense in 1998 is expected to return to more routine levels, in the $30-$40 million range.

Outlook. Margins in the Construction segment are expected to remain steady for the balance of the year. In the General Industry segment, management believes that margins could expand by about 10% by year's end. Margins in the Transportation segment are more difficult to forecast, because they depend on the outcome of the work stoppage at GM. Carlisle continues to explore suitable acquisitions and hopes to bring some of them to fruition in the not-too-distant future. Carlisle has announced that it will enter the insulation business through a joint-venture, and that will be up and running this month. The company's stated objective is to grow sales and earnings at a 15% annual rate, and management sees no reason why that cannot continue to be achieved going forward.

* 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.