Carlisle Companies (CSL) 5 Feb 212020 Q4 Earnings call transcript

Good afternoon. My name is Annie and I will be your conference operator today. At this time, I would like to welcome everyone to the Carlisle Companies' Fourth Quarter 2020 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, we will conduct a question-and-answer session. turn over to Mr. like would the to call I Relations. President Jim Vice Investor Giannakouros, Carlisle’s of Jim, ahead. go

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

quarter quarter Chief Chris fourth the will and position. achieving of and XXXX, Executive in with current business of our and today Chairman, in On Financial begin context around fourth call during continued discussing the Officer; are Vision Roche, Today’s will Koch, what's performance Chief call Chris to come Bob confidence our financial XXXX, views trends XXXX. Bob experienced President, and Carlisle’s discuss me Officer. with

questions. Following Chris line the and for Bob’s up remarks, open will we

with will on that, press SEC in With release Chris. file provided the investing are our refer note before would current in and decision. our A and our involve some Before results based of Forms SEC of on and making we over investment I XX-Q. expectations two made Carlisle please read materially the be to risks may actual and forward-looking of review call these we discussion call which and uncertainty reports comments uncertainties to filings this risks should that these begin, include slide XX-K we an cause in that considering Those turn where to statements different. carefully presentation, on

global year healthy saying team these this pandemic, Entering for in perseverance safe. to and everyone. ability I I the Good hope and their Carlisle by second Jim. afternoon, is in is execute what COVID-XX proud of open times. now to staying uncertain Like am everyone how operating Thanks of the

have Carlisle followed safety XXX suffered in guidelines sadly strong infections, to Our the and XXXX. XX employees the all COVID statistics measures CDC hospitalizations, We and compliance reflect deaths. three

spread and combination on to we part we measures We continue show In anticipate the do at further our progress combat because and safety provided to we continue working the safety of recovery. virus. our accelerate of a priority. tumultuous will mission Carlisle, first to as and the Vision are to the efforts maintaining XXXX vaccination always that rollout, clear is with guide our consistency health XXXX will continue direction our into during

our quarter, entered back in mark get continue As started we third able to and and efficiently supply to the chain increasingly partners the late QX pass employees, mid-year when we to economic to momentum growth. safely and begin customers, on the build contributing and work to were

to community products our work, As returned especially demand more business. strong became evident, building in underlying the global deferred

the this work. as which due momentum restrictions, expect disruptions we of to backlog continuing in risks, While the dynamics, decrease resulting demand vaccines labor severe industry to to COVID is help build with construction certain still contending and continue deferred tight regional areas, in is weather uneven

and sustainable exceptional power business Turning the model. earnings yet to the demonstrated XXXX four, of slide again Carlisle

goals. technologies, has -- contact of been our by in ranging a our diversified medical content, several acquisitions as so, our past variety categorized fluid and the rightly legacy Over evidenced a from Carlisle and company portfolio to handling decades, multiple industrial as segments strategic

started a the drove focused and their value profitability XXXX more to and efforts, world-class apply purchasing when sourcing focus price that critical to and to a a business portfolio despite our we on XX% under discipline, earned half three our over first providing accounted objective capabilities, XXXX, Carlisle the deployment years, Carlisle's organic Vision the In shareholder key consistently for investment creation. ultimate our powered growth sophisticated materials service, greater aiming XXXXs, CCM when the path value. right onto and a efforts CCM. a over performance, XXXX, to performance growth the to that In by diversification, leveraging XX% earnings. introduced drive It Roofing margin in peaking plus higher capital membranes focus. and and XX% to accelerated out dollars of to developing early maintaining customer was ROI CCM's growth instituting majority it CCM returns higher increasingly critical over a view outstanding that legacy on warranted approach strategy the presumably in With Single-Ply creation of disciplined increased investment of contemplate of Carlisle's improvement has time, that we first turned Vision a platforms Experience eye pivot XXXX market to and business. continuous spotlight past greater assessment and CCM's consistent a has at value of performance our overall as been share and earnings have the since revenues of to influence century However, building construction all and A consistent allocated the performance EPDM were expanded sustainable culture, diversification a our

investments was capital evidenced extensive With recent the XXXX, CCM. of in Vision M&A February evolution by official rollout XXXX at of actualized our our

energy have products and maintenance innovation, our in owners. construction the the And the green we we of can of efficiency secure. in a through CCM Roofing design continued construction future generated core XXXX for substantial power projects, the than Single-Ply buildings. aid building our CCM five, confidence. business are believe estimated extensive gases this efficient warranties envelope ever substantial global CCM simple customers building strengths for its roots continuous envelope reroofing building the to We of only provide the sustainable globally that on success of As of extensive It's to XXXX the the identified the you leading teams to continuing the easy of experience and backed throughout product, are to savings division from more of who the innovative, how demonstrated concept by -- because industry to and principles. Vision serve can and support in deliver the to install investment, a from membrane the solutions sustainable focus to our of envelope creating is of elevated improvement offers XXXXs building a today, energy-efficient markets, offset greenhouse growing With history and of planning focused CCM's line set this stream, conviction CCM shown slide on six, building deliver crystallize a complete energy CCM's early systems and revenue On of see solutions consistent Carlisle efforts on of XX% has evolve slide where future. model.

Turning to a confidence business in minutes the to our spend CCM more slide I'd like in about detail few drives what talking model. CCM's and seven, future

speak you've core XX as will up business ago those about over replacement XX% of Non-residential by make the predominantly and buildings driven in like infrastructure XX heard current built it next us is First, to years CCM's roofing decade. need replacing demand. roofs

systems continue growing productive market. reducing, our the not discretionary. placement roof market installed and with in a effective labor roofing capture the grow CCM and efficient, Carlisle and experience by energy to are share new replacements billion cost reminder, and solutions position, of should Aided As $X

as warehouses, workers. reroofing. which construction Past of strong relocation hospitals, revenue of families including comes population educational construction augments and cycles business and construction which XXXX leading majority from construction, due require support growth. big new infrastructure core our the a to box residential increased core Growing retailers, While evidence CCM CCM residential accelerated coinciding commercial indicator commercial a growing suburban with in urban will to COVID, buildings of demand

included insulation, growth to is sustainable which in shown polyurethane eight, foam high market. as of slide our spray recent Second, addition single-digit the a platform CCM

at the grow and better contractor, efficiency greater and a by system performing market residential product. us non-residential savings concept to efficiency above with CCM we spray formulations from builder, combined technologies. new equipment top allow industry-first provide introduced insulation. homeowner Carlisle developed foam foam and is insulation levels which engineering to solution, Our improvements, in positioned energy call efficiency and unmatched IntelliSpray, material application was in Carlisle and Driven will ultimately, and provide fluid This uniquely support from innovative control, our applications. it with polyurethane of both application a

polyurethane, approximately two like at market exciting an roof GDP is times market metals sustainable architectural platform Third, new an opportunity growing billion dollar for to highly with attractive product. This the provides CCM. sloped a into diversify

high the efficiency recently the million versus to and growth underlayment $XX Our billion roofing in we it systems right a drive construction new integrated expand the facility. over European widespread And ROI recently also in in up -- ownership building our experience our the and also accelerate products. are XXXX system recent building demand to efficient and metals as discussed market. growth, non-residential improved strategy, products an a CCM of edition in envelope. to market. growth of at organic in delivering we're by opening the Recent belief on to widely To three our Metal changed German competitor to solutions manufacturing for growth, lend drive of belief competitor the for finally, metals regional leadership building our membranes offers addressable that line this systems reinforce well single-ply pull-through to industry reduce the of our an space. is on the themselves support CCM's focus strong manufacturing another in investment Europe. shift the insulation deliver was expanding support Metal The performance our with and roofs our the committed announced solutions the driving growth are industry To region increased new XXX% dynamics €XX increase strategy. capacity energy of a environmental generating a U.S. trends. after The building efficient building dynamics increasing lasting in along Europe. sales traditional Increasing support Fourth, building billion management for announced is Europe, sustainable XX% platform solution our to complement of acquired products regulations $XX roofing in accelerating leading strategy macro Carlisle in to process. shows focus future waste industry prospects the and materials, solid recyclable, energy we're and to our owners, the with thermal seeing trends the of locations acquisition, in platform footprint is healthy as

businesses, our beyond. I moving XXXX Before Carlisle that to other in largely for story performed into XXXX. and continue expect in was reiterate the our we how remarkable XXXX three and want to to business CCM CCM

through managing three footprints. In declines, actions investing to job due and of in the the other years costs, on businesses the COS, a difficult position did new to taking pandemic. future their our obviously XXXX crisis, product significant the and leveraging was reduce face businesses a development, right-sizing Regarding for teams slide nine, the commendable including

results the weathering good meet expectations, management these very remain -- the not good did to businesses challenges. current macroeconomic committed our with teams While solid

longer will are are position while will we recover believe both markets taken restrictions, recovery. XXXX exceptional easing for resumption and outlook CBF and solid drive in travel for spending, CIT, CFT, where and capital that that a recovery, improved in confident for higher timeline, leverage have We actions growth. signaled CIT rates we especially inoculation with XXXX the rollouts, will businesses of With over for CBF a a optimistic and a CIT of to rapid an improve hospital be the aerospace And will these COVID vaccine there CFT bottom.

generated was to Before a XXXX the ability of XXXX. recently this allocation Please of free I'd of and years in our notable quarter, to gives execute last cash half few other over slide billion like turn on This We've that with touch accelerating $X.X track the details success to XX. generated achievements of supports capital almost on and the XXXX. Bob strategy our and significantly, six confidence financial flow record in value. create team's to

our scale M&A, for an for managing was active returning XXXX year businesses. we synergistic pipeline and acquisitions to a accretive high subdued rapidly While are

and incremental intend remain Notably, committed This to cash past, the flexibility capabilities when strength to as we we capital XXXX. activity evidenced approximately X and remain financial since our XXXX, million us in authorization our Board our returning $XXX acquisition and billion repurchase an repurchases share to of meeting, our shareholders. flow is $X.X more in repurchases always, is share latest by than As afford in in Carlisle. generating at Board share we've opportunistic. totaling for subdued, And discussed deployment million approved

in August of form $XXX XXXX, raising our in the the XXth We also returned year. for over to dividends shareholders million dividend in consecutive

an around we our our seeking meeting gender, increase and On to with also as or are in in Carlisle significantly ethnically XX, in we continued design leadership spent CapEx the XXXX. Board to we communities, of $XX our we and on of better females inclusion already percent of slide In exiting ways by and examining where engage that strong diversity diverse, XXXX, have regulatory products, senior unexpanded in improve actions Finally, XX% our Supported target of commitment. our touch employees racially, and to and CLS, million XXXX steadfast manufacture XXXX of plans and made remains positions. framework. identifying Director's improve our and for XXXX ESG continually progress

XX, I sharing future. more efforts delivered continuous slide X%, improvement part would and and of proving website. Carlisle's while of encourage sustainability is with Carlisle XXXX, Please of pages culture As where improvement about remarkable within before, culture Carlisle's challenging Carlisle feat you X% we in to every read look to we and sales, also you our embody XXXX's a continuous our to operating of of we've system. day. truly many considering the forward the cover annual savings more In target to live the progress turn the ESG on stated employees vision of times CLS conditions XXXX X.X% our ESG

imperative of in continue fourth review efficient. our to possible for as our the processes accidents cash COS a make opportunities our represents more Zero, will be the on sheet operations unifying to of provide new commitment flow. and quarter now to balance safest to injuries. Another businesses XXXX rely the seek milestone major operational and our zero environment, will business Bob? details and they the and creating to and was features our Bob and goal about financial which work Path cultural launch zero

turn and fourth FX to $X.X for billion a the growth revenue revenue Please Chris. XX the sales presentation. the basis bridge X.X% slide to you, contributed Thank in point quarter, of on of organic declined acquisitions X%, decreased X% Revenue the was tailwind. quarter, XX

Offsetting basis point basis we these raw Pricing our basis year. to QX XX. XXX and slide XX a added EPS declines points. where On and compares $X.XX, you contributed freight, XX operating slide XXX XX, improvement. see finally, operating margin other offsetting, costs combined netted the basis price, netted diluted provided $X.XX Turning $X.XX, can decrease, quarter operating partially and to acquisitions benefits year-over-year $X.XX bridge basis declined combined EPS have tailwind. OLS nine volume labor, for to XXX point material, and bridge, interest an $X.XX. continuing point were a COS from costs declined fourth operations was headwind. and headwinds margin repurchases on which and tax to benefit. Share and contributed points. contributed Volume, XX% $X.XX were mix $X.XX a raw freight, labor material, expenses last were

the costs, represented position teams COS quarter, did recovery and pandemic the mitigating world our taking leveraging to a Carlisle on managing around the impact improve significant commendable clearly actions headwind declines volume efficiencies, COVID-related job for most the earnings. both the to While during while

Now, its let's increasing by slide exhibit U.S. restrictions resilience performance team At recovery. roofing results COVID-related the the review delivered foreign continued areas, segment and volume despite turn some with currency commercial to fourth the outstanding continued more performance, in driven by revenues with CCM XX CCM, tailwind. XX to of point restraining translation basis to solid the quarter X%, again in detail.

over approximately inflation. cost slide review and offset fourth price management to year fourth in XX.X% turn a declined CCM the XXX team's polyurethanes wage realization executed revenue margin of and superb the for well quarter. revenue metals in Operating in partially COS, by delivering million XX now by quarter, architectural record quarter's solid cost a results. CIT's the last of platforms CIT's CCM driven CCM basis contributors at the $XX were net newer improvement was XX.X% performance. Our quarter. to Please

publicized, crisis by As this driven markets. commercial was aerospace the decline in well

with resumption could returning growth recent be continued other positive the that of and news While And be COVID are vaccine will rollout has to in there confident a a profitability. XXXMAX-X recovery been the flight platform, aerospace airlines we prolonged, to the daily TSA checkpoint our continue data passenger and to be return continues In America, in U.S., for while delays and sales to improve. cleared surgeries. the Europe, COVID-related by CapEx South medical hospital impacted postponed elective in of

surgeries and aerospace, for and trends increases. a negative preference and attractive, invasive These strategies significantly However, remain declines our is X.X% volume long-term year-over-year robust supply commercial OEM actions. partially COS; offset minimally consolidate from margin price pipeline accelerated by lower were declines savings CIT's increasing chain driven project to by and operating partners. declined restructuring including SG&A,

actions when taken footprint, the are were operating workforce CIT While positioned we the to our difficult, returned. reduce deliver by XXXX to right-size improved our in performance income volumes

XX, material lower revenue FX income we the by volumes, to slide CFT in resolve, XXXX, position experience X.X% spending points. driven Stabilization year-over-year, by efforts in now This decline upgrade to year-on-year. by recent COS and added customer quarter key lower price XXXX. contributed and pricing coupled Turning basis and the well an with an basis from decline driven X.X% XXX management costs, declined was CFT's as additionally, point end and efficiencies capital of XXX in SG&A. partially restructuring enter Operating sales in acquisitions X% new XX.X%, CFT industrial additions, was organic offset declined raw and outlook introductions, product improved markets

Demand region of the for improved while slide X.X% were fourth efficiencies, X.X% X.X% was sheet of by $X drivers, inflation, orders cost revenue primary driving growth XXXX, agriculture second balance had the the grew we quarter in XX half and or by impact, XX, income to fourth equipment CBF throughout positive metrics. COS and X.X% volumes, in operating construction quarter. organic unfavorable On quarter CBF XX. aerospace controls. the CBF's slides and in flat a increased XXXX. Turning FX of and markets, the on wage tight margin, driven mix million primarily offset selected show Operating

balance with hand credit under million on availability We our revolving and Our strong. $XXX $X of quarter of sheet remains billion ended line. the cash

cash was organic volumes. approach sales and lower on in repurchasing and flow with manner, and We million actively opportunistically results investing consistent for through seeking also acquisitions. XXXX shares, CapEx to disciplined strategic capital continue $XXX a balanced Free deployment growth XXXX while an exceptional synergistic

Turning slide see the items corporate can expected be $XXX million for items. you the to comparability and to XX, outlook is year. on XXXX Corporate affecting approximately expense for

expect to be We expense depreciation amortization $XXX approximately and million.

to we Net continue and in is the expect million interest turn $XX Chris. million. -- year, businesses year to to be the approximately approximately be expected of now approximately capital will to XX%. tax million expenditures over is For rate $XXX I'll that, with call full our and for back invest $XXX And expect our we to the expense

Bob. my you, Without business to about associated Thanks for challenges the I Entering with thanks XXXX. those express are closing, families, could success. employees, dedicated again our have we our of we want Carlisle's and all significant optimistic partners, cautiously overcome XXXX, weathered and once outlook their In the Carlisle. to not

from benefit will businesses. to strong and business the We model Carlisle earnings power by strength high investing our returning continue our in of enhance the

in into our all XX% earnings to maintaining deploy the and driving and invested on acquisitions, dividends, of share excess to share. capital returns while repurchases, commitment per of capital ultimately, continue $XX will We strategic delivering

want views the clearly effectiveness informed of keep businesses vaccines, the our the markets. of to our investors we on many including rollout there of around are pandemic, the While uncertainties and

turbulent fully in XXXX acknowledging guidance offer are and we we based where such, upon times. while uncertain we that are As today,

market the COVID deferrals occurred full supported complexity revenue following; momentum anticipate project in in newer For we expansion that of XXXX, we our architectural and investments range quarter, a difficult and year-over-year the to decline stabilizing, growth anticipate double-digit and solutions to are by mid both for businesses. us. CCM trust capital, Carlisle, XXXX, restrictions COVID positive for again medical metals, in of for high different ease, of hospital complete at polyurethanes, businesses, decrease CFT that low CIT That rapid XXXX. in in expect behalf in are the With pressures European XXXX. we given coupled jobs a our At anticipate the Annie, year place employees now we the concludes approximately growth we as improved we're said reroofing businesses comparison will trends end surgeries for improvement will remain near-term rates indicating manufacturers rise towards formal production thank strengthening end you single-digit you we book very leisure high order inoculation will in single-digits of drive our XXXX. questions. On and both and an of in ready first Aircraft as CIT, revenue with full travel -- CBS business This believe in order anticipate elective XX,XXX These XXXX. exiting for year book in an resumed. and the products comments.

first question [Operator Oppenheimer. sir. Instructions] We from have a you, from line of Bryan Blair the Thank

is line Your open.

your may ask question, You please.

afternoon, Good guys. Thanks.

Bryan. Hi

Chris, And could hands. level industry if color days developments a forward? thinks thoughts large the your you opportunities commercial -- a here, competitive you deal? about risks of and Obviously, how competitor high just more early implications in team share little briefly looking wondering ago with about on but the mentioned very major and month that balances changing the CCM the roofing

market is I positive. being think, the in group general, we of the European into the entrance view

which obviously, a in organization I think, in Europe, expectations bring for perhaps also, a things to industry businesses. as solid good margin I -- other ESG-focused should operating more run well And with whole. their the think environment

products business globally. solutions model that things I the have the our to doing brings attention are doing in great and in it brings to think, we think are and it industry, I CCM attention So, in general, here the good

entrant. highly But And obviously, the is competitive I competitive neutral so say think worst. a with I team and will would any at be it's highly

trending to believe tough I start And reasonably are February. through still volumes sense. face Makes you the CCM, how sticking comp Okay. a year? with

bar Just and in lower of momentum second the and the ahead curious through quarters? March honestly third about

see your out about came as felt we And and talked as obviously, the the went wasn't think very about year I was you growth, consistent kind of it it how it fourth happen what and but huge I on. think thought we model quarter. growth. was Yes, And with -- would of the

obviously, So, things something and better just is be would difficult sequentially. you likely saw to got a QX we the that see in continuing Obviously, like in say QX. I it trends QX it'll comp.

in it. right Got and And We know with guys. put investors that reasonably now you impact price environment? I are cost How a the particularly in was are should increase later about in out we oil this cadence kicks obviously focused for in sticking and quarter. there of confident trends on think pricing inflationary you gas how based believe price and XQ year? you the And little aggressive a this

other and by that From were products of see related also quickly my for embraced the increases. a that support to increases and parties perspective, see lot very price it was occurred construction we widespread satisfying price

effective set But increases. the vis-à-vis up what we is the think material volumes a material in end our on some I is raw on that done full but year. impactful situation side, So, see it further think there inflationary lot, for our becomes mentioned of we belief raw as my more is And initiatives sourcing in into said we sees traction -- get I pressures. obviously will to us call as the you good as price we approaching later on a becomes rise, have especially that the team on as

you year But is price its hit. materials. early be it'll as raw think future, the no sometimes was the to first sit to neutral and we year respect relatively then quarter when Bob, as first COVID we here so good, that? for want you last And again, anything with we to quarter and in days, add of the saw today indicator know,

the up about usually until Yes, year to volume I in that we've happen every starting we see think pricing pick doesn't second Brian, quarter. talked this traction

expect, as little we the we while and recovering So to in fully second half get flat then pick expect a year, up speed expect to half up. would we Chris the the for the that be mentioned, pressure in first with volumes prices

Understood. Thanks again.

Bryan. Thanks, Yes.

Thank from have from you, the Tim question of sir. Baird. another line We do Wojs

open. is line Your

You may please. question, ask your

Hey. Hey, guys. the Europe there kind that color slides, very you up those how margins the polyurethane, Thanks. if they maybe the today, aggregate, kind is guys in metal business big parity to and of the to on a square are of overall for guess and good way kind businesses overtime? with and get Nice single-ply in it’s helpful. are in job. just Thanks of provided where I maybe can

ultimately higher progress CCM that rates and as Tim in you talked Yes. than for range rates I’ll higher, well that. The are aware, that wanted then about least and positively. as think our well. be where growth rates compared and Europe, our we obviously them making growth polyurethanes to both metals materials get have margin, we're can growth against in weren't be, let we we've to would been metals be core they an think Europe, in at Bob they Europe polyurethanes core roofing smaller. acquisitions, And are margins is would contribute on we conversion the But with

So Bob, add do to you want to anything that?

every I this in the as polyurethanes our them before business we that XXXs, are they little improve combined a the since grow range XX% on And as approaching on in the low million put when metals and bought architectural more your in margins them range quarter. then Tim, together $XXX over mean, and we the then XXX. then with talked them efficient; focus pricing, those being European we get grew Yes, businesses, about COS put and

expect them. margins So And increase we're again, rapidly. to positive as the accelerate, we on volumes

Okay.

in there of I $X in helpful. of just that a business of growth to within a terms Okay. in contributor the Because And billion where then get XXXX, sizable terms level medical CIT. of to are margins? set XXXX you XX% That's us you to kind that's Could business margin. on and kind think pretty

where to to through levers reach business think kind to those is to just that So, today be need trying targets? of pull able you and

past; this to going think segment there a get of I that detail. the But is with Yes, to going medical CIT COVID. on be has here medicals the didn't Tim, jump Bob's aerospace aerospace I highly to want for talked that excess think, big in unfortunately, MedTech we have We've about it business. strong absolutely more what right you're in core a margins little in prior decline contributor. expected But

a build OEs, we new be back, the set contributor. that fact, it'll to doing, which definitely out in products So we're continue think really be work COVID I got And last I XX to time really plus with the discussed it -- had think things medical I think work-from-home we've the the for them, do we new that were with to lot situation deal when a projects with we really forced of we and down. OEMs, projects, slowed had

Bob to do some you So, want commentary more on? get

overall, these closer did medical and contemplated efficiencies medical Providien the is that as get with approaching coming to happy in And million, deal business, purchase in million we're forward, Yes, we're obviously, positive the the or start we're we But going the Tim. able volumes The Providien the model. COS the core that XXXX put integrated, the business give core. little their the for I as and well, that's to on, accounting things very acquisition, everything up. businesses, running a going in before total so picking margins $XXX get breakeven. get once valuable them very including we mean, we take business, over $XXX mid-teens,

Okay.

an just Interconnect. Okay. Great. And the on pace of with then growth

of in high terms single-digit forecast? the kind a to You the do that -- have building guess baked a you through think of would What's about into pretty I mid year? kind of business based How QX comp. declines tough

Yes. We'd know, tough. bottom. first expect I to quarter and is probably the the the recall, be that quarter I think fourth in

back remember nicely not little a a because rates QX business to was being decline expect as aerospace in We then build CIT a million overall growing year-on-year of QX QX yet. and little $X out bit QX then from with up strong bit in start fully decline there And our from growing QX, QX, for and again. even

Okay.

and Okay. guys. the of a luck on good year Appreciate it. the good week, Have rest

Hey, thanks Tim.

another question We Thank Boroditsky you, Saree of from sir. do from the line have Jefferies.

open. Your is line

answer You question. your may

Thanks.

the in within quarter medical you XXXX? outlook So CIT. the side and building aerospace last Could aggregate what you then on on just on for question the versus your saw

So we aerospace? in what seeing are

Versus then medical quarter the and in outlook? fourth in your

fourth I mean, Yes, quarter, down in over XX%. we're aerospace

Yes.

then it's And and made difference the test So measurement to in up be continuing medical. down. is

the still not So is you due but significantly, overall medical hospitals, the as down CapEx to great is know. in aerospace growing

part It is overwhelmed so big aerospace. medical just

Yes, Yes.

Medical Jim. is and this areas hey, -- in the have you other down. flattish yes, quarter typically So,

So, helps hopefully there. you get that

costs looks Okay. to the you’re like going Can of charges forward? segment. you're have And taking it talk about some then that tasks continue to expected you going just restructuring in savings and

fully moved this year largely closure. to Kent not are carryover moving closure. in the before the second of aerospace from from announced know to expect costs all those shut we facility the this that Those what you talked takes charges Yes. long be related and half in about year, we time, Because as and Kent, and until Washington a we've

ESG of just And seeing me, you I are savings order slides, outside customers Thank energy any great are you your wondering, for Europe, on there's spread seeing pull any roofing your in impact the the just projects then on color and reroofing in that help policies to demand? government ahead positioning energy comments. was of And increase you. Okay. in efficiency?

in tight the with really Yes, got this, pulling in forward labor here. States forward, we've we've United difficult this the I anything the always it's think said pull on environment to that

anybody's say they order from anything wouldn't perspective. do they'll get I things that. Obviously, done an So can quicker, pulled forward

overall each we evolve to year, applied that immediately and I products can get an there as we out solutions to be. movement think, continue new there's where in general, projects just those they

So did that. helping new Larry a I moving Fink, and doubt from like and at legislative see speed we people like the which don't From content, there's accelerate we putting to think we good the California perspective, curve Directors in is We've I the action are I the the think a with that to we innovation and see it think when actions some like others instructions of know we hope that letter any been pace. least there definite been on we've Board think ways, at to that very want female with on is in is and we concrete pleased occurring.

Vice our of new mandates. appointed for obviously And we our along, to team. this so as Sustainability a for Board management of we President in response and It's year. And focus all Directors said we've do legislative don't it

efficient it and facility ahead more making the for them, comply energy the and of less being shareholder we that. workplace with applying make that use things we entire but good just for like benefits with because returns, customers our us. course, more really, certainly, is for diversity to plants and business and energy saves Carlisle innovative want and efficient, in get know products money decision and inclusion better higher recycle benefits our we And their help Of operations

we sense there an movement do while just is there's think common from to So perspective also legislative economic these movement, solid things.

Thank color. you. the Appreciate

bet. You

another Suisse. Thank question you. from from We Baumgarten have do the Adam of Credit line

Your line is open.

your question. ask may You

taking to my out guys, construction, you contemplate guidance, guys good new in that single-digits, for afternoon. question. Thanks sales does that year? last CCM declines Hey, Maybe from on high as lag start

growth new that the Last an products that put I things forecasting it's Yes, into When our we our what's into happen. going put best right the platforms. to mean, for like different put occur. we in construction we talk equation, guess in that our also not something obviously, declines to about as did year, new the like equation think year, we now restocking I in

would And so that, construction I any new and occur would yes, that contemplated in XXXX. say modulation we've

translates how couple kind maybe of made, buy of buyers? maybe you you've I prices how more how just TCM to think sort the switching the years? of some then materials input And sort and and over spot sort what changes it to have like relationship the publicized costs, should about and MDI gears your raw you. for And of MDI, last the of mean, visibility you Got between Okay. we and

on stability, week about stability, month is I day week to more extend a modulations on market and say way little the it more or to more Well, that day let's basis. ability pricing bit, think the a those or certainty timeframe a to little the occur spot on month may bit and to but more, well,

we a years. over have are We last couple big of very these the consumer products of

back And When CCM through leveraging we at as back Our as our legal have well we closed going with sourcing we're sourcing CCMs, That doesn't to the have price very and our along hammered lead that's to down and purchasing team really relationships team yours mean central place, two CCM matures lot market. And a that stability and sell, job and volumes mitigate that of of good our team was and actions in I reflect spot better and can when stability our But you more done changes control long-term going a difference a now great I raw it in going strategies, familiar for what think occur, well of a comparison, pricing we're we're how not type as contract. up it the great think in better to that to prospects fluctuation. month our bought spot And absolutely example I force purchasing see XX wasn't quarter. where or of and position example and have the we and setting and those I around have forced new long-term on spot market. material parameters it's they target with that's be think think, think when spike we see a more buying between Obviously, just purchasing declared. our to is you know whether -- view pricing business, as we're is that that advance. good got business while we modulated and since and of the how put later and actually a in I our we're a were and to day going in sell the CCM strategies had ourselves by SL a to contracts a business think our price. the a products due see this didn't happen the a as then,

Great. Thanks a lot.

bet. You

Thanks a lot.

of line Northcoast from have from question Thank another do you, the Hocevar sir. Kevin We Research.

line is Your open.

can your You ask question.

Thanks. Good afternoon, everybody.

Kevin. Hey,

you're one last the it's right the to Quick around guiding years, like rate, been basically it XX%. on XX%, tax looks three

in wondering such step this you big expect So the tax a year? why rate up

that reason it's have lot couple discrete rate Yes, shrinking right? The items, have couple lot XXXX. driving of CIT rate That's of might a all, items through now. tax been the things to down relate in tax a Adam, done coming years, that international of to up you our first drive and and businesses Kevin, A it's on, you different tax businesses down. unprofitable rate things essentially remember a are of in going our the lower planning got a to where

always on based local X% but we're profits going in you of most state if we So, think that's XX XX on visibility good and got what's US we now. profit do to just the is going the you right and think a to the our in X% has and And the where down, rate, a to that point. our federal is have bring best world, There's starting you about taxes. of statutory how to US, most kind the of got generated XX%, XX%

Yes.

if of could ish and front help whatever And you're sense. you bit out you expectations business, address sales the in terms makes incremental color on got the or great margins it of segments. the the sales little four how should different margin see to that'd help to of three a just Okay, in the then Wondering in growth kind on margins that a and XXXX. either us of of if not could looks of inflation, kind type expecting like that you of segments though because for expecting you neutral be But, nice, growth you that color, some think CCM. helpful? the your There's

on CIT upside, breakeven. based it be was then margins its Yes. on way lower volume thing Kevin, than about anything CBF, CFT long guiding price going the looking same down incremental our time, volume we're on then a on the and to and I talked even at think and for margins it's volume costs flat don't upside are We for were incremental. increment the if

So expect that CIT. year tough to be for a

Okay. much. you very All right. Thank

question from Thank line from you. We the Capital. Loop Garik another Shmois do have of

Your line open. is

ask please. may You your question

My Stevenson. perform end Gary, this in for one expected well just you're CCM performing for my Hi, is are backlog what and first a questions. taking bidding which to markets on from I'm and perspective is well Jeff thanks are year? this seeing

that call Yes, that. we we when idea it more suburbanization, that laid we the out if to markets continue of well, that And projects. the I to out talks administration America the we'll And to administration some about saw I we more laid Biden their see previous infrastructure. can think going think think I ideas perform that some are see infrastructure First, there's the we'll think I in think from obviously, of I that

your question, turn we I'll look Bob. other when that to to So

On where is question, This it's sorry. from. the other coming

was your question what again? first Bob Jeff, for

sorry, was just it right? and backlogs some I'm bidding,

Yes. Yes. All right. I'll it. just take

coming into impact, backlog. and the levels we have come I think into there's we I a weather get but held an is the quarter. the despite in confusion. pretty process is the Sorry dipping so there. a but It from backlogs especially year as fourth strong our a the would newspapers, back, relatively has what about good, pretty first say always quoting little bit through quoting On big we Obviously, quarter. consistent interesting, we also strong the is read backlog had the We've a traditional

think side, so the about someone because trying doesn't slow ongoing give the get in quote. obviously, know XX% I business a it's you're with our there, in you as you of situations, we backlog to really as talked And reroofing to the and labor there just down

the rents And the side, whether prosperity, been see the think with strong it see and a expand. of are and things and that happen then things But to and for they business labor when new part, as continue adds situation want in a to tight other we people that On them, things yes, construction base. have across we're reroofing, decline placed weather I cautious, to the COVID still happen, seeing to there. will a the like well the for what's restrictions people bit little that going has it like And good as the or on differ backlog it across most us. just activity makes construction markets obviously

with And an just some CCM That's sheet be pipeline, update is and then the on M&A side, And but seeing mentioned helpful what kind kind balance now. know, any you're then just you priorities updates on Okay. on would of it, great? wanted I great. update other of how priorities? any there

big some most always coming see sheet Yes, are and of coming of have in over $XXX projects first priorities we projects balance to we in going CapEx those million XXXX being up in CCM.

increase about have pretty to along, our balance M&A share continue our fund between being we which all happy do would two. and repurchases. R&D, our we're a been expect And Synergistic priority want finally, M&A to So then that XXth nice year. dividend the again of doing we've those out to year we that this for

XXXX lot try and a we every lot to out good opportunities. think COVID some XXXX saw, but we pipeline I there. disruption a synergistic in the closed. we We're at weakened on just and starting see day looked to clearly opportunities make the with get didn't grow again, working We get going pipeline sure the

So, to going we're continue between the balanced to two. be

moving Thanks. And best of luck forward.

of Thank Joel question lineup from from Tiss you. We another have BMO. the do

line Your is open.

terms much get private deals is the still little Or Hey, guys, in all set the too acquisition tighter of your pushing and I up of have Can equity commentary. returns hard? was price that? on a jumping you guys goalposts in any the through

on materials. you we're good mean, know, opportunities it I construction in some think still seeing I the segment, depends Joel, No,

even find a in you I think might aerospace, aerospace deal, good we find the there could maybe business. deals -- some some

So interested we'd still our be content expanding for in clients.

that get the ultimately in see So business an into market there. return down work opportunity some let pretty this team to would assets some we high up perhaps the, we pick and profiles, to as them CIT our go for and there have

we that, make a to tech. I to put find you we we more Providien leverage, Obviously, can fits, you when know, at and place think you have like think for with to I and things that discriminating. sure. do infrastructure bit have And but deals med they little look be good sure they're could in

the bigger bigger? if And there smaller that or go valuation, maybe is a things not bit a little you difference? little a are find or versus enough of necessarily? you Can cheaper, Like

deal had that close Well, was our good a business it. pretty we on the to multiple last saw construction materials

what done. is, So what as the I and that the they've just make -- are difference the and management size the prospects business what to team for know and don't asset a

I they to presence. they an some better, management depends, some would like So, and say We little pick that preference would tried things think give bit things for answer a maybe like our just have that. some think perhaps integrate things and up were I to innovative that, I bring but or it more could that. bigger. be we hopefully, market products Europe And access They talent like you

there So for. can are we're looking we willing pay some we leverage, and that definite to specific be things for we'd think

already Okay. bunch you're just a distinctive of polyurethane, going architectural not you opportunities can you're break of some new and My sort it's give you out, business, some other give of the of, you're can last how initiatives metal these nice enough of is niches like, and that these to just kind market is on what us after, are big size the us end more really framework to doing? have they're any a one you of additive you mentioned or -- extensions, or

things be IntelliSpray we just break We out we for not longer for know offer globally that new it's an alternative market. better one a we know products, from dominated on can most that of think there. but call, think conversation can the the might it's this equipment perspective, million some maybe products, and like I we by We We part mean, player. the maybe $XXX around

you that know spray in XXs $XXX a market build on is equipment is strong that we is of certainly maybe time one. you over for we And combination can that's of opportunity are with new tens millions we Metals when a spray had and even those each a could very business a polyurethane dollar foam on horizon, can that some things There's -- million millions insulated you. some and significant interesting five dollar metals, does The market has try with to the panels Carlisle do new opportunities market. sizes that one have IntelliSpray position year next above $XX a the has that in are, we'll And an that. line what business think we better. attached a the So, than our product look do to building them, of seven that can architectural screens again, locations to those more more the foam, put of call, like follow-up definitely of But are characterize architectural million, $XX other so. we'll with think on there from three we things -- And opportunities. at

massive a billion. opportunity, $XX Europe's

roofing space, the with So

last roofing? was That my total that that question? clarification is little the of And your for or kind is roofing,

it's single traditionally ply No, not Yes. have single not all Joel. -- all we like roofing here. it's membranes

and line this is a it's growing digits EPDM it. and resorts actually function Europe really it has to a with unique Our product is combination which is double product in of bitumen its at

look and metals, So fasteners, at like we available look that's sealants metal adhesives. at we We look the roofing maybe we space, that. roofing, things our at at and edge things total market look our like

single XXs. whole That's membrane we you just much a opportunity roofing a the the last, that move in bigger envelope. more have know in X building would had to really opportunity to like become, It's years that made this So what over CCM XX the represents. back ply set than solution

very all you. want take Okay. Well, thank the don't I you much. time. Thank to up

Joe. Thank you. bet. You

Thank you.

David from Longbow Mr. the lineup do we have MacGregor So another from Research. question

Your line open. is

question. your ask may You

Yes. Good afternoon, everybody.

is on acquisition to of complete on M&A, level guess achieve build Just I goals? vision this activity guess, conversation XXXX need what to to around most you'll your recent best your the

somewhere $X we billion acquisitions. think of contemplated billion I $X in to XXXX, vision

VPS. and I could that's continue still And that, good. than to VPS. a We I more With the to themselves, to bigger we hit that for we way. put from the our of really billion thought complete get I'm do XXXX not growth focus we opportunities the time, that perspective. need There's is goal the $XX Bob acquisitions And even think $XX think acquisition, more at that us to out same level feel sales. to to the present do of vision $X sure I of

it our CCM we our drive over you get I fund projects expenditures internally, to know be years, infrastructure, gets organically, preference to do those capital you as XX%. fact, think levels seen In the and would to with you build we've because CCM do it organic internal and that that when and of your those, ROIC

So our to was I $XX do confused. maybe that framework primary XXXX get know lower on the and think, end could goal maybe a less acquisition we to our there. of you the know, But probably share. original And I vision

And we're returns. focused always on

on we're the the can yes, to do going get So returns if acquisitions, them. we

quarter. of that got wanted much you makes XXXX. the asked be on from pretty kind guess, to And and you terms been way in which back thought to last that extent Chris, and the any an time, how anywhere business forward how there and might XXXX had million same in maybe size I might that That you the And but your thought to thinking I'd was circle to much XXX question if at just thought pushed back get XXXX? contribute just XXX growth And from business then I I I ask sense. million, circle it you out pushed just was to of and update to

Yes.

which Obviously, a not good that reroofing, now a we year, heightened and any last even the story still you, year protocols had took in think because were, decrease was COVID in on a a going been you And anyway, -- We productivity. it's and demand And I job build of that in the that to how think labor just more of I you worrying good tight see inventory lot understand the know, still the us it's be how and so, of a delayed something, to -- much quarter wonder productivity but and have think of XX% and deal out roofer? a be out to where I that of much gave to sanitizing I'd got the the I lot markets. sure see stations, of contractors north of to with, think that, distancing, out quarter I social occur sites hand it's characterize reroofing. there a second and we strong our masks that third number restrictions. have we some really of didn't I'm roofing

that And of supply is and that so think can people said, added again, demand figure a can is And I that as to do that the it's he just earlier, backlog. too, this, there. we there's the limited

ability like I I've get it's never or you just done, can't you the quote it And it's it. a something. you anything so to but to know, to defer in what is try it quoted get get or doesn't get hard I even have projects before. mean, to do even ultimately, seen by, done contract here Phoenix, and really

think it and they we weather as where in on, less on done work northern obviously, region, It's there's regions, the it more I the depends it's, So there's the in probably you're said, so. best depends being --

to I spot Yes. in the hard number. guess of a put kind it's for

little number what So thinking ask just, than you are the are quarter asked feeling I you like or guess, maybe you about might how is directionally bit I the ago just, that a be a question way to it? bigger

buildings we as got we that we the reroofing we and and, coming projects know are supported roofs our I as the built by the build we be front are we've old, keep and that graphs, referenced did on And some competitors referring it's think Definitely. expanded now of the Yes. on years replaced. we shown just do that they XX up, to are, out, saw and that need to and coming end, XX down these to

the of whether was just on can't it anything so -- whether slows labor. adds We're that to simply it's through. or backlog constraint down, say would get it And because the that COVID, I

CCM to on right it for roofing have grown And down based were X%. at should way XXXX and sales know in simple look year X% demand the you every everything

Good much. very Got luck. Thanks it.

bet. you. Thank You

are further There questions Thank you, sir. no presenters. from the line

You may continue please.

XXXX our the we and everybody your great participation, concludes Thanks, Annie. for We time. questions. earnings thank at This to appreciate to speaking fourth healthy next call. quarter want earnings I our you with call. you taking Stay look forward

and call. today's gentlemen, concludes Ladies this conference

participating. disconnect. may you Thank You for now