“Despite a 5% sales decline, Carlisle Brake & Friction (CBF) impressively improved its EBIT margin by 50 basis points to 16.8%. Sales in CBF’s markets declined significantly during the second half of the year as its global OEM customers adjusted their inventory levels. We expect continued softness in this segment through the first half of 2013 with some recovery later in the year.
“Carlisle FoodService Products (CFS) continued to execute on its improvement plan by completing restructuring activities to close two of its distribution centers and relocate all of its Chinese manufacturing back to the United States. Savings from these restructuring activities are expected to result in higher margins in 2013.
“We also generated record cash flow from operations of $486 million in 2012, a result of our continued focus on earnings growth and working capital management allowing us to fund investments in our businesses of $140 million and the acquisitions of Hertalan (CCM) and Thermax (CIT).
“In November 2012, we opportunistically issued $350 million of 10-year senior notes at a coupon rate of 3.75% and completed the year with a debt-to-capital ratio of 30%. We enter 2013 with $600 million of borrowing availability on our credit facility and $112.5 million of cash on hand, leaving us well positioned to pursue future growth opportunities to move us closer to our long-term goals of $5 billion in revenue, 30% global sales, 15% operating margin, 15% ROIC and 15% working capital as a percent of sales.”Roberts concluded by stating, “As noted earlier, 2012 was a year of setting records and positioning for future sales and earnings growth. Despite continued economic uncertainty, we expect further growth in sales and earnings in 2013 through our focus on our long-term strategy. For 2013, we are planning for sales growth, including acquisitions, to total in the mid-to-high single digit percent range. We expect continued margin improvement from plant restructuring activities, organic sales growth and savings from the Carlisle Operating System. We remain positive about our outlook in 2013 and our continued progress towards our long-term goals.”
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