CHARLOTTE, N.C. — Carlisle Companies subsidiary Motion Control Industries Inc. will exit the on-highway friction and brake shoe business and dispose of the assets associated with this business as part of a planned dissolution. Carlisle is presently evaluating the amount of the impairment and severance charges and estimates that the after-tax amount in discontinued operations will be approximately $4.5 million.
David Roberts, chairman, president and chief executive officer, commented, “Due to the current market conditions, and our desire to minimize any future negative cash flow impact from this operation, we have decided to dispose of the assets of the on-highway friction and brake shoe business. During the first quarter of 2008, we had placed this operation, along with our power transmission belt business, into discontinued operations. While we have decided to cease operations of the on-highway friction and brake business, we will continue our efforts to find a buyer for the power transmission belt business. The power transmission belt business continues to generate positive earnings and cash flow.”
Roberts added that the decision to cease operations of the company’s on-highway friction and brake shoe business will in no way impact the continued operations of Carlisle Industrial Brake and Friction (CIBF). “CIBF is an innovative braking systems business for off-highway industrial, agricultural and military equipment as well as on-highway and towed vehicle actuation systems. CIBF was, and will continue to be, operated and managed separately from Carlisle’s other businesses,” Roberts said.
