"Raw materials comprise more than 70 percent of our cost of goods sold and these cost increases negatively impacted nearly all of our businesses," CEO David Roberts said in a statement.
(Reuters) - Carlisle Cos Inc <CSL.N>, a diversified manufacturer, posted a first-quarter loss, hurt by charges and rising costs for steel and oil-based commodities, and forecast a mid-single digit growth in 2008 earnings and revenue, sending its shares down as much as 11 percent.
"Raw materials comprise more than 70 percent of our cost of goods sold and these cost increases negatively impacted nearly all of our businesses," CEO David Roberts said in a statement.
The company posted a net loss of $62.6 million, or $1.02 a share, compared with net income of $36.8 million, or 59 cents a share, in the year-ago period.
Loss from continuing operations was $1.01 a share and included an impairment charge of $1.46 a share related to its power transmission belt business and on-highway brake business, which the company is selling off.
!ADVERTISEMENT!Analysts on average were expecting earnings of 56 cents a share, before items, according to Reuters Estimates.
Revenue rose 13 percent to $708.3 million, coming below analysts' expectation of $711.7 million.
Higher freight costs, reduced factory utilization on lower outdoor power equipment production and inefficiencies in certain tire and wheel plants also hurt the company's quarterly operating income.
The company, which has two tire plants and a wheel plant, said costs for all key raw materials -- particularly steel, natural and synthetic rubber and carbon black used by the transportation products segment -- have gone up.
Carlisle, whose products include commercial roofing and heavy-duty brake and friction, said it will continue to face margin pressure throughout 2008, but expects earnings growth in the second half of the year.
Shares of the Charlotte, North Carolina-based company fell to $29.95, before recovering some losses to trade at $30.70 in afternoon trade on the New York Stock Exchange.
(Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Amitha Rajan)
