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Carlisle (CSL) Gains From End-Market Strength, Acquired Assets
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Carlisle Companies Incorporated (CSL - Free Report) stands to gain from solid momentum in the U.S. reroofing end-market and high demand for its energy-efficient building products. Also, momentum in the company’s medical technologies business and recovery in the United States commercial aerospace business have been aiding its performance for some time now.
In the quarters ahead, price discipline, product innovation efforts and a strong backlog level bode well. For 2022, the company expects revenues to grow more than 40% from the year-ago reported figure.
Carlisle acquired MBTechnology in February 2022, strengthening its product building platform, and boosting its energy-efficient solution offerings. Also, the buyout of Henry Company in September 2021 enhanced CSL’s product offerings for construction activities. The company anticipates the buyout to boost its earnings by $1.50 per share in 2022. Acquisitions contributed 15.5% to revenue growth in second-quarter 2022.
Among other companies from the Conglomerates sector, General Electric Company (GE - Free Report) focuses on strengthening and expanding its businesses through the acquisition of assets. GE completed the acquisition of Opus One Solutions Energy Corporation in January 2022. The Opus One buyout boosted GE Digital’s capabilities to support the use of renewable and distributed energy resources.
Also, GE Healthcare’s buyout of Zionexa in May 2021, the Transformer Solutions business of SPX Corporation in October 2021 and General Electric’s acquisition of BK Medical in December 2021 are worth mentioning.
ITT Inc. (ITT - Free Report) also expanded its product lines and market presence through acquisitions. ITT acquired Clippard Instrument Laboratories’ product lines in August 2022. The acquisition along with the addition of product lines of stainless steel, brass and aluminium cylinders as well as volume tanks expanded ITT’s Compact Automation product offering in the robotics, packaging and automation end markets.
The acquisition of CRP Technology and CRP USA (jointly CRP) in June 2022 helped ITT acquire additive manufacturing technology capabilities and strengthened its position in the material science space.
ITT’s buyout of Habonim in April 2022 boosted its offerings in the cryogenic and hydrogen ball valve space apart from expanding into new end markets. Habonim has been integrated into its Industrial Process segment.
Coming back to Carlisle, the company’s measures to reward its shareholders through share repurchases and dividend payouts are encouraging. In the first six months of 2022, Carlisle paid out dividends of $56.7 million to its shareholders and repurchased shares worth $175 million. The quarterly dividend rate was hiked by 39% to 75 cents in August 2022. While exiting the second quarter, CSL had $4.3 million worth of shares left under its share repurchase authorization.
However, escalating costs and expenses have been a major concern for CSL over time. Carlisle has been facing supply-chain constraints, inflation in raw material prices and labor challenges for a while now. Also, the decline in the value of the local currencies of foreign markets relative to the U.S. dollar might affect CSL’s top line in the quarters ahead.
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Carlisle (CSL) Gains From End-Market Strength, Acquired Assets
Carlisle Companies Incorporated (CSL - Free Report) stands to gain from solid momentum in the U.S. reroofing end-market and high demand for its energy-efficient building products. Also, momentum in the company’s medical technologies business and recovery in the United States commercial aerospace business have been aiding its performance for some time now.
In the quarters ahead, price discipline, product innovation efforts and a strong backlog level bode well. For 2022, the company expects revenues to grow more than 40% from the year-ago reported figure.
Carlisle acquired MBTechnology in February 2022, strengthening its product building platform, and boosting its energy-efficient solution offerings. Also, the buyout of Henry Company in September 2021 enhanced CSL’s product offerings for construction activities. The company anticipates the buyout to boost its earnings by $1.50 per share in 2022. Acquisitions contributed 15.5% to revenue growth in second-quarter 2022.
Among other companies from the Conglomerates sector, General Electric Company (GE - Free Report) focuses on strengthening and expanding its businesses through the acquisition of assets. GE completed the acquisition of Opus One Solutions Energy Corporation in January 2022. The Opus One buyout boosted GE Digital’s capabilities to support the use of renewable and distributed energy resources.
Also, GE Healthcare’s buyout of Zionexa in May 2021, the Transformer Solutions business of SPX Corporation in October 2021 and General Electric’s acquisition of BK Medical in December 2021 are worth mentioning.
ITT Inc. (ITT - Free Report) also expanded its product lines and market presence through acquisitions. ITT acquired Clippard Instrument Laboratories’ product lines in August 2022. The acquisition along with the addition of product lines of stainless steel, brass and aluminium cylinders as well as volume tanks expanded ITT’s Compact Automation product offering in the robotics, packaging and automation end markets.
The acquisition of CRP Technology and CRP USA (jointly CRP) in June 2022 helped ITT acquire additive manufacturing technology capabilities and strengthened its position in the material science space.
ITT’s buyout of Habonim in April 2022 boosted its offerings in the cryogenic and hydrogen ball valve space apart from expanding into new end markets. Habonim has been integrated into its Industrial Process segment.
Coming back to Carlisle, the company’s measures to reward its shareholders through share repurchases and dividend payouts are encouraging. In the first six months of 2022, Carlisle paid out dividends of $56.7 million to its shareholders and repurchased shares worth $175 million. The quarterly dividend rate was hiked by 39% to 75 cents in August 2022. While exiting the second quarter, CSL had $4.3 million worth of shares left under its share repurchase authorization.
However, escalating costs and expenses have been a major concern for CSL over time. Carlisle has been facing supply-chain constraints, inflation in raw material prices and labor challenges for a while now. Also, the decline in the value of the local currencies of foreign markets relative to the U.S. dollar might affect CSL’s top line in the quarters ahead.