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

David: Yeah. Pricing has been relatively flat. Generally, when we see an environment where raw material clause are decreasing, we are able to hold on to pricing for a quarter or two, and then pricing will generally start to follow what is going on with raw material cost. So I would expect that through the first quarter, and perhaps somehow of in the second quarter, we’ll be able to hold the existing pricing levels.

If oil continues at the rate at the rate that it is, or continues to decline, I would expect that sometime this year we will start to have to give some price back. But we are still trying to catch up from when of last year. We’ve got a reason to hold to it as long as we can.

Kevin: Got you. And then, final question going back to what Ivan asked earlier. I’m going to just a little differently, do you know, if laws states fraud at current levels, do you know – in terms of percentage – what the basket will be down on a year over year basis? Also, I’m assuming that there is some type of lag between the feed stocks declining and when your raw material is declining, do you expect further declines from whatever that number is as the year progresses?

David: Kevin, I just don’t have that information in front of me. Why don’t we address that at the February meeting? But usually, we end up with a quarter lag. So what we are doing is buying a quarter ahead. Again, if we are buying or using materials today, we bought it in the fourth quarter so we would have the effect of that price and the material that we are using today to manufacture with. So, it’s generally a quarter lag.

Kevin: Okay, thanks very much.

David: You’re welcome.

Jennifer: Your next question is from Glen Weismann. And I apologize. He has withdrawn his question.

David: Okay.