Carlisle Cos Turns to Lean Manufacturing

Carlisle Cos (CSL) has, since June '07, a new CEO, Dave Roberts, who formerly ran Graco (GGG). While at GGG, he boosted ROE from an already high low ~40's to the upper ~50's, which was reflected in a substantial rise in the stock price. His stated goal is to boost revenue from $3bil to $5bil and ROE from the low teens to the mid-20's in a 5 year time frame. Success at achieving these goals should result in $8/share EPS vs. ~$2/share currently. Should inflation remain in check and the economy recover, an estimate of 5% Market Cap Rate (MCR) would predict parity pricing about $160/share. Inflation of 4% vs. 2% estimated would give an MCR in the ~7% range and a stock price closer to $110-$115/share range.

The 2Q09 report indicates that Roberts is having success at implementing his lean manufacturing concept at CSL.