Carlisle Companies, Inc. (CSL)’s 2014 Earnings Update Conference Call Transcript

Jennifer: Again, ladies and gentlemen if you would like to ask a question please press star then the number one on your telephone key pad. Your next question is from Neil [inaudible 00:17:08] .

Neil: Hi guys. Good morning. For CBF, you mentioned revenue might be down to relatively flat on 2015. [Inaudible 00:17:15] sounds like it was a disappointment n the quarter. But does is it your sense that this business will get significantly recur from here before it gets better? I’m just trying to understand how that-

David: Yeah, I don’t think so. [inaudible 00:17:29] was strong force up until midyear this year and it started to decline. We’ve seen construction actually pick up a bit, and mining has been mining for the last 2 1/2, 3 years. So in other words there is just not a lot going on there. In those were three big segments.

We have the aero space business we’ve found slightly in the quarter. I think that was more customer adjusting [inaudible] levels than anything. So I think aero space will be fine. I really don’t foresee anything that is going to subject that we are going to see a dramatic reduction in volume at CBS.

Neil: So overall it sounds like new construction should sort of view any sort of further declines and acts, and be relatively flat in ‘15?

David: Yeah, that’s probably not a bad theory.

Neil: Okay. And then just follow up to Kevin’s question, Dave. With CCM, you mentioned you expect you might have to give back that price later in 2015 if oil stays down. But if I recall pricing was a relatively flat maybe just a little bit in 2009 despite volumes being down, close to 25%.

With the volume back drop for 15 high single digits, is anything out there that would preclude you guys from holding a line on price particularly since the industry is relatively consolidated? I’m glad that there may be another player that has entered the market since ’09, but I would still think that you guys should be able to hold pricing relatively flat now.

David: Well, it depends upon a competitive environment. But all of our competitors were actually in a negative pricing situation, but we were getting raw material cost increases at the end of 2013 as we entered to 2014. We really weren’t seeing any relieve. We could not get any price.

So I would expect if the competitors would probably try to hold on to prices as long as they can, trying to recover what they lost in 2014. I would expect that we will do the same. It’s just a question of who is going to blink first, and start to have an impact on price. Certainly, it’s our intent to hold on price as long as we can. But again, to try and make up for what we lost in 2014.

Neil: Okay, that’s all [inaudible 00:20:02]. I just want to final on you mentioned within CCM that you don’t anticipate start up cost to repeat in 2015. Are you anticipating that it won’t repeat at the same level or there will be zero start up cost or roughly zero in 2015?